PORTAGE LA PRAIRIE, Man. – With one month left in the transportation review being conducted by Arthur Kroeger, farm groups are watching closely to see what it will mean for producers.
Many don’t like what they’re seeing.
Review participants and other players in the industry gathered in Portage La Prairie Aug. 30 to talk publicly about the progress made to date in the industry discussions aimed at implementing the report of Willard Estey.
“From what I’ve seen so far, there’s nothing here for producers,” said Don Dewar, president of Keystone Agriculture Producers, adding he’s not encouraged by what he sees in terms of possible cost savings for farmers.
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Dewar is watching to see what the committee uses for a revenue cap base in its final report. He’s also watching for signs that the Canadian Wheat Board’s marketing ability might be compromised.
The Estey report proposed ending the board’s role in transportation planning and co-ordination. The agency would buy grain at port position and moving it there would be left to railways and grain handling companies.
Some reservations
Sinclair Harrison, president of the Saskatchewan Association of Rural Municipalities, also harbors some reservations about the process.
He said issues such as road upkeep have been pushed to the background, and he worries that the interests of farmers are being overshadowed by those of grain companies and railways.
“I don’t have a warm, fuzzy feeling about the process so far,” he said. “We as farmers feel that we’re the poor second cousins in these negotiations.”
Two weeks ago, the National Farmers Union pulled out of the discussions, saying farmers weren’t being heard and the railways were refusing to negotiate on key issues.
Saskatchewan Wheat Pool president Leroy Larsen said farmers need assurances that the rates for rail service reflect costs and do not maximize railway profits.
“This is a critical issue, particularly when it comes at a time of near-record low farm incomes,” he said, adding that producers could gain as much as $140 million annually if grain transportation is provided at competitive rates.
Producers benefit
Kroeger expressed confidence that a more competitive and deregulated system will translate into savings for producers. Details of a monitoring program are being worked on to gauge how much of those savings will be passed to producers.
“There’s lots of evidence that deregulation in many areas has brought costs and prices down.”
Kroeger said he is optimistic the Sept. 30 deadline will be met for filing his report to federal transport minister David Collenette.
But he also acknowledged that some major issues are still outstanding as the clock winds down.
“We’ve got a lot of agreement,” he said. “We’ve also got some areas of disagreement.”
If consensus on some the issues cannot be reached by the end of September, Kroeger’s committee will note that in its report. It will then be up to Ottawa to set policy on those issues.
He made it clear at the Portage meeting that a lack of consensus will not mean a return to the status quo: “I think the option of doing nothing is not in the plan.”
