The Conservative majority on the House of Commons transport committee indicated yesterday that commodity shipper proposals to strengthen legislation to regulate carrier service requirements will not be accepted.
The legislation will be back to committee for debate the week of April 15 after a two-week parliamentary break and will be sent to the House of Commons for final debate without amendment.
Opposition MPs have proposed more than a dozen amendments to bolster shipper rights.
Conservative MPs have proposed no amendments and on March 26 led Transport Canada officials through questions to explain how the proposed legislation meets the needs of shippers and will encourage commercial deals that will not require legislative intervention.
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“We think there will be very little use of the legislation,”
Transport Canada director of rail policy Carolyn Crook told London, Ont., Conservative MP Ed Holder, who wondered if railways also were protected in the legislation. “In most cases, there is an incentive to resolve these issues immediately.”
The Coalition of Rail Shippers has a different view, suggesting six amendments to strengthen the bill.
“Shippers require amendments because efficient rail service is essential to growing the economy,” said the coalition, which includes many prairie agricultural members. “Some have started seeing service slipping in January 2013, which has now snowballed into extensive deficiencies.”
The railways have argued legislation is not needed because service has improved and commercial contracts are the best option rather than legislation.
Bill C-52, the Fair Rail Freight Service Act, requires carriers to entertain a request from a shipper that they negotiate a level-of-service agreement with penalties if either side does not live up to the commitments.
If an agreement cannot be reached, the shipper can apply to the Canadian Transportation Agency for an arbitrated settlement that imposes service obligations on carriers with penalties for non-compliance.
If a breach of a service contract is established, the CTA can levy a penalty of up to $100,000 per infraction, but the money goes to the government.
Shipper claim for damages would have to come through a court case.
Opposition MPs insisted yesterday that the balance of power still rests with the carriers.
“The Conservative disregard for shipper interests is breathtaking,” said Regina Liberal MP Ralph Goodale.
Conservative MPs argued that the legislation is a balance weighted toward shippers.
It likely will get through the House of Commons in April and then through the Senate before Parliament rises for the summer in June.
