CWB on rail cars
To the Editor:
… The Car Allocation Policy Group is an industry body run by a four-person executive composed of one farmer and three industry officials representing the grain companies, the CWB and the railways.
For the system to perform effectively, commitments made by each segment of the industry to CAPG must be adhered to, otherwise performance will be less than optimum. …
Under the CAPG policy, for the April 1997 to July 1997 period, the CWB was entitled to 76 percent of the weekly car supply for grain movement to the West Coast. The remainder of the available car supply is taken up by the non-administered grains (rye, flax, special crops) which account for six percent of the car supply, and the administered grains (canola and oats) which account for 18 percent of the car supply.
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The CWB structures its sales and movement program around its share of available shipping capacity. From April to July 1997, the CWB shipped 5.17 million tonnes of wheat and barley out of the West Coast ports of Vancouver and Prince Rupert. This compares very favorably with the sales targets of 5.04 million tonnes which we provided to CAPG at the outset of the period. The CAPG operational plan during this same period was 6.866 million tonnes.
If one were to take 76 percent of this operating plan, this works out to 5.2 million tonnes – in line with the actual shipments achieved. For Thunder Bay, our share of the car supply under CAPG policy is 73 percent. From April to July, we shipped 3.93 million tonnes out of Thunder Bay, compared to sales requirements of 3.68 million tonnes submitted to CAPG. …
As is the norm in the grain industry, the months of August and September are typically slower shipping months as Northern Hemisphere customers are harvesting their own crops. Nevertheless, our movement through August and September will be well above average even though the system will not be at full capacity.
Some industry observers have suggested that more grain should be moved during this “down time” because ports have capacity and rail companies have cars available. The reality, however, is that grain must be moved when customers want to take delivery of the product.
As August draws to a close, we are on target with the sales requirements we provided to CAPG for this month – 1.3 million tonnes at the West Coast and one million tonnes at Thunder Bay. We expect that sales requirements for September will also be met.
As we move into the October-forward period, the industry must remain customer-focused and ensure that customer requirements are met, particularly during the periods of peak price and demand. If all segments of the industry remain focused on ensuring their commitments to CAPG are met, we will be able to rebuild confidence with our customers. …
– G. P. Machej, Commissioner,
CWB, Winnipeg, Man.
Buyback price
To the Editor:
I would like to correct some popular misconceptions which were conveyed in a letter to the editor by Cecilia Olver in your Aug. 14 issue.
(1) Canadian millers do not pay a “fictitious buy-back price.” They pay the CWB a price that is competitive to what Canadian millers would have to pay to any other North American supplier. The CWB adjusts its prices daily to reflect values for comparable wheat published by the Minneapolis Grain Exchange.
(2) Western mills and producers purchasing wheat at a location in Western Canada do not pay the price at port.
The appropriate freight rate is deducted to account for their inland location. I hope this clears up any confusion.
– Gordon Price,
Marketing Manager, Domestic & Export Wheat Products,
Canadian Wheat Board,
Winnipeg, Man.
Farmer sues
To the Editor:
I am a 36-year-old farmer from southwest Saskatchewan.
In July I sold two loads of my own wheat rather than let the federal government take it, and consequently, I spent five days in jail.
I have retained the services of Art Stacey of Thompson, Dorfman, Sweatman, the largest and one of the most respected law firms in Winnipeg, to defend me on charges of exporting without a Wheat Board license.
I have filed a Notice of Constitutional Question with the court which means that the central issue of the trial will be property rights.
Western farmers cannot sell their grain, a fundamental right of ownership.
They must instead submit it to expropriation by Ottawa.
Will the court uphold a farmer’s inherent right to own the grain that he grows?
If farmers owned their grain, then they would have the right to sell it where they choose.
I have been convinced that hiring a good lawyer is the right thing to do.
The justice system, unfortunately, has less to do with justice than with procedure and politics.
We are right, yes, but I think it is naive to think that justice will come without the best understanding of the judicial process and the best communication of our arguments.
This issue deserves to be fought with the best resources available. The Crown has already told my lawyer that they have an unlimited budget to protect the Board’s monopoly, which, because it has been entrenched for 55 years, won’t be broken easily.
However, I am confident that Mr. Stacey and his firm will be able to do an excellent job of presenting my case.
This issue is bigger than any of us first thought.
It is not just about grain, it is about the protection of property rights for all Canadians.
This case will be fought on the inherent right of Canadians to own and dispose of their own property, without fear of arbitrary expropriation by the federal government.
If we lose, it will have dire consequences for every Canadian.
But, if we win, this case should serve as a precedent and as protection for every Canadian’s rights in the future.
– Dave Bryan,
Central Butte, Sask.
