Shipper service rights legislation ‘over-reaction’

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Published: December 21, 2012

Both sides of the debate over the federal government’s proposed shipper service rights legislation are expected to suggest amendments as it makes its way through the House of Commons and into committee hearings.

Railway officials in particular will likely argue that Bill C-52 is an unnecessary over-reaction to a non-existent problem of bad rail service.

Last week, Canadian National Railway had the most aggressive reaction, warning of “unintended consequences” of service reductions if the potential for imposed level-of-service agreements is imposed.

However, the railways cannot expect much sympathy from MPs at the committee, based on their early reaction.

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“At first blush, it doesn’t look all that bad and if CN is complaining, it can’t be all that bad,” New Democratic Party agriculture critic Malcolm Allen said.

“We’ll see what comes out of the implementation in the end and there could be amendments at committee, but this corrects a balance. We’ve been in a spot in the middle of nowhere since the Crow rate went and shippers were put at a disadvantage.”

Former agriculture minister Ralph Goodale said the rail companies should move on.

“I think it is time for the railways to acknowledge that a legislative framework there will be and continuing to tilt at windmills is not helpful or constructive,” he said.

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