Wheat and barley producers won an important victory last week, when the Canadian Transportation Agency ruled that CP Rail did not provide adequate service in the winter of 1996-97.
The ruling opens the way for the Canadian Wheat Board to seek compensation from the railway, through either court action or negotiations.
The amount of money at stake is significant. Board officials say poor rail service cost farmers $50 million that winter, in demurrage costs and inability to move grain at better prices.
CN Rail had also been named in the board’s complaint to the CTA, but proceedings against it were dropped after CN settled out of court for an undisclosed amount.
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More important than the money, however, is that the railway has finally been held accountable for poor service. Specifically, the CTA found that CP Rail had discriminated against grain, favoring other commodities like coal during a period when severe weather hampered rail movement.
Although CP Rail still refuses to admit that such discrimination happened, the decision puts it on notice that grain must get its fair share of transportation resources when capacity is constricted.
Wheat board chief commissioner Lorne Hehn may have been somewhat optimistic when he said the ruling also shows that farmers can rely on the shipper-protection clauses in transportation legislation. It may take more cases to determine how much real protection shippers have in the evolving less-regulated system.
But one thing is clear – the ruling and the earlier settlement with CN would not have happened without the Canadian Wheat Board.
Despite the skepticism of its critics, who predicted that nothing would be achieved by taking the railways before the CTA, the board’s judgment has been vindicated. Once again, it has demonstrated its commitment to serving farmers’ interests.
That underlines the importance of the wheat board director elections currently under way. Over the next seven weeks, farmers will have an opportunity, by electing the best possible people, to ensure that the board remains committed to serve farmers’ interest .
With as many as 11 candidates competing in one district, voting carefully will require an investment of time to get to know the candidates’ philosophies and abilities so they can be ranked on the preferential ballot.
But it will be time well spent if it ensures farmers will continue to have a strong ally on their side as the grain transportation system changes.
