The focus of government efforts to legislate a stronger code of commodity shipper rights in disputes with the two national railways now shifts to the Liberal-dominated Senate where senators will be under pressure from farm groups and other commodity shippers to move quickly.
On Jan. 28, their first day back in the House of Commons after a six week Christmas break, MPs quickly approved C-8, amendments to the Canada Transportation Act that would meet many longstanding shipper demands to rebalance the power relationship with the powerful railways.
The bill now goes to the Senate for final debate and review.
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Supporters of the legislation worry that the railways, opponents of the legislation, will convince the more business-connected senators to delay the bill until an election is called, which would kill all unapproved legislation.
In the Commons, the bill received all-party support.
In the final hour of debate, Winnipeg New Democrat Pat Martin noted that many commodity shippers feel captive to the only railway offering service in their area.
“For these shippers, the rail transportation environment is not naturally competitive and in the absence of adequate legislative measures, a railway company could take advantage of its position as a monopolist in the region,” he said.
“That is why we are welcoming these legislative measures that will afford some protection to these captive shippers.”
In the debate that began before Parliament adjourned for Christmas, Conservative MPs described the bill as a promise kept to rural constituents.
Brian Jean, northern Alberta MP and parliamentary secretary to the transport minister, promised action.
Jean said it would “rebalance” the power relationship between shippers and carriers without driving away railway investment. “The bill is necessary for our future and the government is going to pass it.”
It would remove the need for shippers to prove to the Canadian Transportation Agency that they would suffer “substantial commercial harm” without a CTA ruling against the railways.
It would allow shippers to band together to ask for final offer arbitration to a common problem with the railways.
It would allow shippers to challenge railway “ancillary” charges for non-freight rate items such as cleaning and storing cars.
And 30 days after C-8 becomes law, the CTA would launch a level-of-service review that shippers have been demanding for years.
