A decision on the fate of the federal government’s grain hopper cars will be made this fall, says a spokesperson for transport minister Jean Lapierre.
“The minister wants this issue resolved in a timely manner,” said Richard Macsymetz. “It’s kind of an irritant and has been festering for a long time.”
The government first raised the idea of selling the cars in 1995, and then formalized its plans in its budget a year later.
Macsymetz said the minister wants to make a recommendation to cabinet before Christmas on to whom the cars should be sold. However, it may be next spring before a transfer is formally approved.
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“Any package wouldn’t go forward until the minister is satisfied it has as close to a consensus as possible among the various stakeholders,” he said.
Sinclair Harrison, president of the Farmer Rail Car Coalition, said he’s happy a decision is imminent.
“The minister seems to understand that after 81/2 years, there has to be a decision,” Harrison said in a Sept. 16 interview, a day after meeting with Lapierre in Regina.
Harrison added he was impressed with Lapierre’s knowledge of the rail car issue and was encouraged by the discussions.
“We think we’re more or less back on track where we were in late March and early April, that it’s getting geared up to go to cabinet.”
Any plans the government might have had to deal with the issue in the spring were put on hold by the June federal election and summer parliamentary break.
Coalition officials were to meet with Transport Canada officials in Ottawa this week to talk about what remains to be done before the issue goes to cabinet.
The government has not formally laid out any process for disposing of the cars. The farmer coalition wants cabinet to transfer the cars to it for a nominal fee, on the basis that the cars have been provided to western Canadian farmers at no cost since the 1970s.
“It would seem very strange, at this period in our history, for the government to back away from that position and attempt to maximize the value of the cars,” said Harrison.
“If they go that route, the freight rate will have to go up to compensate the new owner. It’s pretty simple math.”
As a non-profit corporation run by farmers, the coalition would lease the rail cars to shippers for minimal rates to maximize returns to farmers. It said it would also save a significant amount of money by contracting out fleet maintenance to private companies.
Neither national railway has said whether it is interested in buying the cars. Both say only they want the process to be open, transparent and commercial, with no special treatment for any party.
Macsymetz said Transport Canada is still considering options on exactly what process will be put in place.
In addition to the federal cars, the coalition is interested in acquiring another 6,000 cars owned by the Alberta and Saskatchewan governments and the Canadian Wheat Board.
