The prairie grain industry will get its first glimpse of the government’s grain transportation legislation on May 31, with a promise that if approved, farmers will reap a $178 million reduction in grain freight rates beginning with the Aug. 1 crop year.
Broad details of the new policy were announced May 10 by transport minister David Collenette but legislation will not be ready before May 30 or 31.
Introducing the bill will begin a parliamentary race to get it through the House of Commons and the Senate in less than a month.
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The House of Commons is scheduled to adjourn no later than June 23. The Senate could sit a week or two longer.
To get the legislation through all stages of debate, it means limited discussions, debate-ending closure and little committee time to hear witnesses.
Any glitch could derail the process and throw the government promise of Aug. 1 reform into doubt.
It left opposition MPs angry and virtually powerless to influence the legislation.
“It is shameful that they are doing it this way,” said Canadian Alliance House leader Chuck Strahl. The CA said such important and complicated legislation deserves scrutiny.
Not ousted
The Canadian Alliance questions why the government did not totally remove the Canadian Wheat Board from the grain transportation system.
Progressive Conservative agriculture critic Rick Borotsik said he felt similar frustration.
“I will support it because I think producers need it (the money). But I think it is political games on their part and it is very frustrating.”
The timing also frustrates the grain industry, which has supported much of the government’s proposal.
Before Aug. 1, grain companies, railways and the Canadian Wheat Board will have to negotiate myriad details on how the new contract and tendering system will work.
“It will be tight,” said Saskatchewan Wheat Pool vice-president Marvin Shauf.
According to the government, the grain transportation reform package is a compromise that offers something to all sides:
- It would place a cap on rail grain revenues, reducing them by 13.5 percent from existing levels or 18 percent from levels that would have been in effect after Aug. 1. Collenette said it would cut freight costs by $178 million a year, based on a 30 million tonne movement.
- It would require the wheat board to tender at least one-quarter of its wheat and barley shipments to the commercial system in 2000-01 and 2001-02 crop years, increasing to at least 50 percent in 2002-03. A third party will be hired to monitor the tendering system. Based on the monitor’s report, the government will decide later if the percentage of commercially tendered grain should be increased above 50 percent.
- It would make it easier for communities or short-line railways to acquire abandoned branch lines. When a grain line is closed, the railway will have to pay compensation of $10,000 per mile for three years to local communities.
- It would refer the issue of open running rights, access and regional railways to a panel reviewing the Canada Transportation Act, beginning July 1.
- It would change final offer arbitration to speed up decisions when shippers have a dispute with carriers.
- It would send $175 million west over five years to help municipalities repair grain-dependent roads now facing heavier truck traffic because of branch-line abandonment.
Farm organizations generally welcomed the freight rate savings but the package also drew fire.
Some, including the railways, complained that the reforms were a tepid response to calls for total commercialization.
