The farmer lobby that wants 13,000 government-owned rail cars given or
sold to a farmer coalition has received some important support on
Parliament Hill.
On June 6, Liberal rural caucus chair Murray Calder said the
government’s rural MPs are working to convince the government that the
cars should be given to farmers, rather than sold to the highest bidder.
The Canadian Wheat Board supported that position during a June 6
appearance before the House of Commons agriculture committee.
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CWB chair Ken Ritter said the government decision to get rid of the
rail cars should not end up costing farmers money. If the railways
bought them, they would charge farmers through higher freight rates.
“Gifting these cars to farmers or extending the government’s operating
agreements with the railways are the only options that would not have
any rate implications for farmers,” Ritter said.
He said unless the cars are controlled by farmers, their place in the
grain car fleet cannot be guaranteed.
In late May, leaders of the Farmer Rail Car Coalition were in Ottawa to
make the same arguments.
President Sinclair Harrison said he hopes ownership of the cars can be
secured by Aug. 1, 2003, even though he received no assurances from
Ottawa last month. Transport Canada is not expected to make the terms
and conditions of sale public until autumn.
“Really, when you look at what is happening in agriculture now with low
prices, low incomes, drought, the farm bill and whatever, this is no
time to be adding more costs to farmers on the Prairies,” he said.
Calder said the Liberals’ rural, northern and western caucuses are
working within the government to have the rail cars turned over to
farmers for $1. They will formally vote to take that stand this week.
And in a later interview, Winnipeg MP and western caucus leader on the
issue, Reg Alcock, said the issue is one of fairness and logic.
The cars were purchased in the 1970s to ensure farmers’ grain could get
to market, he said.
“For me, the cars were bought with taxpayer money to give farmers some
leverage in the transportation of grain,” said Alcock. “To ask farmers
to pay for those cars again is wrong.”
During the agriculture committee meeting, southern Saskatchewan
Canadian Alliance MP David Anderson wondered who would pay for the
inevitable upgrading and maintenance of the aging fleet of cars,
assuming farmers owned them.
Ritter said farmers already pay, since a $4,000 per car maintenance
cost is added to the amount that railways can recoup within the revenue
cap.
Chief CA agriculture critic Howard Hilstrom said the party does not
have a policy but he believes an efficient system would see those who
know how to run a railway – the railways – operate the fleet while
farmers stick to what they do best – growing and marketing their
products.
