Despite a Liberal senator’s plea that the government shelve rail freight service agreement legislation until it is improved, the Conservative majority on the Senate transportation committee approved it June 12.
As in the House of Commons, Conservative senators rejected all proposals for improvement from commodity shipper representatives to the Fair Rail Freight Service Act.
The legislation is expected to receive final approval and passage into law the week of June 17 before Parliament adjourns for the summer.
The legislation, Bill C-52, will for the first time give commodity shippers the right to ask the Canadian Transportation Agency to impose a service agreement on railways if a commercial deal cannot be negotiated.
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Railway failure to live up to the terms of the agreement could result in a fine of up to $100,000 per incident.
However, shippers appearing before the Senate committee during two hearings this week argued the legislation is too weak, does not properly correct the market imbalance between railways and shippers, gives railway lawyers too much room to challenge and delay and should be strengthened.
They proposed six amendments, although several witnesses said weak legislation that can be strengthened later is better than no legislation.
Railway representatives appeared before senators late June 12 to argue the legislation is unnecessary, railways are performing well, commercial agreements are best and there is no need for new legislation or regulation.
Despite Liberal protests, the Conservative majority said the fact that neither side is happy with the bill shows the government struck a middle ground.
“When both sides are not completely happy, it has to be right,” said Alberta Conservative senator Betty Unger.
“It strikes the right balance. Striking the right balance in an imperfect market relationship is accomplishing something.”
Toronto Liberal senator Art Eggleton argued that since neither side was happy, “I think the sponsor of this motion (Unger) should consider sending this back to the drawing board.”
He said most of the witnesses appearing at committee “do not want this bill.”
However, a number of the shipper witnesses said that while they wanted the bill strengthened to improve shipper rights, the current bill is better than nothing.
When the Canadian Transportation Act is reviewed in 2015, shippers vowed they will report on how the current legislation is working and will try to strengthen the legislation to correct flaws that have been obvious.
