OTTAWA – The federal government last week introduced the first of its promised reforms to the Western Grain Transportation Act, proposing to end the subsidized Thunder Bay to Manitoba backtracking practice and to eliminate export subsidies on wheat shipped to Mexico.
These changes, to be debated when the House of Commons meets again after Feb. 6, are to take effect by Aug. 1, 1995.
They also will allow the railways to charge demurrage or storage charges if shippers use rolling stock as a form of storage.
However, these reforms could be overtaken if the government completes its promised total overhaul of the WGTA by Aug. 1.
Read Also
Man charged after assault at grain elevator
RCMP have charged a 51-year-old Weyburn man after an altercation at the Pioneer elevator at Corinne, Sask. July 22.
“The minister wants to bring in the (major) WGTA reforms and have them implemented by next crop year but there is no guarantee the legislation will pass by Aug. 1,” Howard Migie of Agriculture Canada said Dec. 16.
“In case it doesn’t, the minister wanted to be sure at least these changes are done.”
Under the amendments, grain that travels from the Prairies to Thunder Bay to receive the Crow Benefit subsidy and then back to Manitoba for shipment to the U.S. will no longer be eligible for the subsidy.
It does not mean grain going south will not be subsidized, however.
Migie said if the grain goes to U.S. markets via the St. Lawrence Seaway, it will qualify for the subsidy to Thunder Bay.
Last year, the 1.1 million tonnes of grain that took “the scenic route” to Thunder Bay and then back to Manitoba cost taxpayers about $16 million in subsidy payments.
Migie said the railways have suggested much of that grain could now move through the Seaway, so there might be little saving.
The end of Crow Benefit subsidies on wheat going to Mexico follows Mexican threats to penalize subsidized grain. The Americans no longer use export subsidies on Mexican sales.
Migie said Mexico purchased more than 900,000 tonnes of wheat last year from Canada and the volume is expected to rise.
“We wanted to avoid jeopardizing access to that market,” he said.
The provisions allowing demurrage or storage charges against shippers misusing rolling stock as a form of storage follows recommendations last summer from a Commons committee studying last winter’s rail car shortages.
Migie said cabinet also is preparing an order-in-council implementing never-used WGTA provisions allowing penalties against railways if they perform under expectations.
