The government is in no great hurry to sell its fleet of grain cars, says agriculture minister Ralph Goodale.
In recent weeks, some grain industry groups have called on Ottawa to delay or abandon its plans to sell the 13,000 rail cars, as promised in last spring’s federal budget.
The government initially said it wanted the cars sold by the end of 1996; the deadline was later pushed back to early 1997.
In an interview last week, Goodale hinted the sale could be delayed even further, noting the freight rate increase designed to help pay for the cars is not slated to go into effect until Aug. 1, 1998.
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“There is no blistering rush to conclude a transaction quickly,” he said. “We’ve got some time. We should take the time that’s necessary to make sure the decisions are right both in terms of mechanics and timing.”
Prairie Pools Inc. has asked Ottawa to delay selling the cars for five years, until after a statutory review of the new transportation rules has been completed and the existing operating agreement with the railways has expired.
United Grain Growers Ltd. says the government should just keep the cars until they wear out and let them be replaced in a normal commercial manner once the rail system has been deregulated.
A coalition of farm groups trying to buy the cars is opposed to more delay, saying prairie farmers are ready and anxious to take over ownership of the cars as soon as possible.
Goodale said the government’s decision will still be based on the principles outlined in last spring’s budget: The cars will be sold in a way that gets reasonable value for taxpayers; that creates an efficient transportation system; and that takes into account the interests of shippers, railways and farmers.
“It’s kind of difficult to bring all that together in a way that works,” he said.
Asked if the government might have to delay its decision in order to achieve those goals, Goodale said that’s possible.
“I would not say that we yet come to that conclusion, but that’s also a conclusion that one should not, at this point, rule out.”
