Grain transportation proposals put forward by three general farm organizations represent mere “tinkering” with an over-regulated system, says a coalition of commodity groups.
Last week the Saskatchewan Association of Rural Municipalities, Manitoba’s Keystone Agricultural Producers and Alberta’s Wild Rose Agricultural Producers released their wish list for grain transportation reforms.
They said their proposals are supported by most farmers, and hope to enlist the help of prairie provincial governments as they lobby Ottawa to adopt their plan.
The next day, the Prairie Farm Commodity Coalition, a strong supporter of deregulation, issued a news release saying the farm groups’ proposals wouldn’t produce a more efficient system or long-term savings for farmers.
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“These proposals undermine justice (Willard) Estey’s aim to improve accountability by removing third party regulation and control,” said coalition chair Greg Rockafellow.
He said proposals put forward by the pro-vincial groups were discussed during consultations led by Arthur Kroeger, but failed to win consensus support from grain industry stakeholders.
The federal government hired Kroeger to find ways to implement Estey’s recommendations for grain transportation reform.
The coalition singled out for special criticism the farm groups’ proposal to give the Canadian Wheat Board a continued role in transportation planning and co-ordination.
“We need market signals, freedom to manage without wheat board control and the most commercial and competitive environment possible,” said coalition member Kevin Archibald, president of the Western Canadian Wheat Growers Association.
He said studies have made it clear that the railways have no incentive to pass savings on to farmers in a regulated, noncompetitive environment.
Meanwhile, another farm group with a different view of the world has asked federal transport minister David Collenette to implement changes that protect farmers’ interests and lower their costs.
National Farmers Union president Cory Ollikka sent a Sept. 22 letter to the minister urging a railway costing review and a forced sharing of productivity gains under the freight rate structure.
“The alternative – effective open access and railway competition – is extremely unlikely, as the Kroeger process demonstrates,” Ollikka said, adding that productivity gain sharing has widespread support in the farm community.
Ollikka said that given the lack of consensus, any recommendations put forward by Kroeger will reflect his own opinions and biases, and warned that federal politicians will suffer in the next election if they push through changes not supported by farmers.
