Decades of debate about grain handling and transportation will come to a head over the next few weeks.
Farmers, grain companies, railways and governments resumed their efforts this week to figure out how to implement the recommendations of the Estey report, under the direction of federally appointed facilitator Arthur Kroeger.
The process is to wrap with a final meeting of the steering committee Sept. 8-9, by which time Kroeger has said he hopes the report will be largely written. It’s to be given to transport minister David Collenette by Sept. 30.
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That gives participants just four weeks to come to an agreement, or not.
“I think we’re really down to crunch time,” said steering committee member Gordon Cummings, chief executive officer of Agricore and chair of the Western Grain Elevators Association.
Meetings resumed Aug. 9, after a two-week break designed both to provide some vacation time and to allow participants to assess where the talks had gone so far and hold informal meetings and discussions on some of the difficult issues.
Some say it could quickly become clear whether there is any hope of reaching consensus on crucial contentious questions like sharing railway productivity gains, the role of the Canadian Wheat Board in transportation and rail competition.
“The truth of the matter is that this week we’re really going to find out whether significant progress has been made and people are trying to find solutions, or whether they’re just going to stick with positions,” said Cummings.
CWB chair Ken Ritter agreed that first couple of meetings could tell the tale.
“I anticipate that’s likely where we’ll see where this thing falls out,” he said in an interview in the midst of the two-week recess.
The first few weeks consisted largely of gathering information and putting forward wish lists, he said. Now comes the difficult and potentially divisive process of developing detailed proposals.
Rod Scarlett of Wild Rose Agriculture Producers, an Alberta farm lobby group, said his organization’s main concern is to ensure that farmers are the main beneficiaries of any changes.
“The whole purpose behind the Estey report … is to ensure producers receive the benefits,” he said. “But we haven’t dealt with any recommendations yet and until we see something concrete , it’s premature to judge whether that will happen.”
National Farmers Union executive secretary Darrin Qualman said the process has been frustrating for farm groups that don’t agree with the Estey report.
“We’ve been saying all along we think that is the wrong package of reforms and nothing we’ve seen has changed out mind,” he said.
The process might have worked well if it has started with a blank slate, he said, “but if the starting point is what’s the best way to implement Estey, it’s proving extremely difficult to come to satisfactory conclusions.”
Cummings said if consensus proves unattainable on key issues, Kroeger could always recommend they be set aside for further review.
“We may not have a total package at Sept. 30,” he said.
Saskatchewan Wheat Pool vice-president Marvin Shauf is already looking beyond the Kroeger process to what happens next.
“It’s not really clear what the process is for input beyond the time this winds down and Kroeger writes his report,” he said.
CWB-railways lock horns
Meanwhile, the ongoing battle between the wheat board and the railways continued this week.
The Canadian Transportation Agency reported last month that rail system improvements had generated about $9 a tonne in savings since 1992.
It said the railways had kept about half, and passed about half on to shippers and farmers through a combination of voluntary programs and legislated requirements.
The wheat board last week released an analysis by the consulting firm Travacon Research Ltd. saying the CTA indicates that from 1996 to 1998, the railways realized $467 million in productivity savings and passed on just $97 million, or 21 percent, to shippers.
CWB chair Ritter said the board doesn’t want farmers to be deceived by the railways’ statements that they have passed on half the savings.
“Our board felt it was important to get further independent analysis on railway costs so farmers can navigate their way through this smoke-screen of so-called facts.”
