Canadian Wheat Board chair Ken Ritter was on Parliament Hill last week condemning the Liberal government for refusing to use proposed new national transportation legislation to force more competition into the grain hauling system.
Proposed amendments to the National Transportation Act now before Parliament would not establish “effective” joint running rights that would allow short-line railways to use for a fee tracks that are owned by other railways, he said.
“The CWB position … can be summarized by one word, competition,” Ritter told MPs on the House of Commons transport committee Oct. 28.
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The board must compete in world grain markets and grain carriers also should face competition.
“They must be expected to go head-to-head with meaningful competitors who will force them to continuously strive for the lowest cost structure and best service in an open and fair marketplace,” said Ritter. “The federal government’s refusal to adopt effective running rights is unacceptable.”
His criticisms provoked a few questions but little obvious enthusiasm from Liberal MPs, many of whom support the soon-to-be Liberal leader Paul Martin, who has said he favours stronger grain carrier competition.
It is unlikely the legislation will be approved before Martin becomes prime minister, which is expected to happen in February. If Martin calls an election and dissolves the current Parliament, the bill will die.
“Nobody can honestly say this will see the light of day,” Canadian Alliance MP Jim Gouk told Ritter and CWB director Ian McCreary.
Still, he said the wheat board complaints were worth debating and Gouk was less than supportive.
The MP said that if CN or CP had to let competitors use their tracks, there would be little incentive to invest, upgrade and innovate.
Ritter said that while CN and CP oppose joint running rights in Canada, they have applied for and used that tool in the United States.
