Former cabinet minister David Emerson’s highly anticipated review of the Canada Transportation Act puts forward 60 recommendations on how to improve the transportation system.
Transport minister Marc Garneau made Emerson’s year-long review public Feb. 25. It looked at Canada’s transportation system as a whole, including air, marine, road, and of course, rail, including grain transportation.
On grain, Emerson argued that the maximum revenue entitlement, which limits the amount of income Canadian National Railway and Canadian Pacific Railway can earn shipping regulated prairie grain, should be eliminated within seven years. The policy has long been a sore spot with CN and CP, which argue the revenue cap is difficult to calculate in any given year.
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The former Conservative government’s decision to extended interswitching limits to 160 kilometres should also be phased out.
For shippers, Emerson argued that a clearer definition of service is needed.
“The review recommends that the level of service provisions be amended to include a more clearly defined goal. This would provide clearer direction to railways with regard to the federal governments’ expectations as they arrange to accommodate a shipper’s traffic,” the report reads.
Emerson’s report was fast-tracked by then transport minister Lisa Raitt in June 2014 as part of the Conservative government’s response to the 2013-14 grain crisis, which is estimated to have cost Western Canada $6.5 billion.
At the time, Emerson’s report was billed by the Conservatives as the source of long-term solutions to Canada’s grain transportation woes.
In the meantime, the government said, the Fair Rail for Grain Farmers Act would provide short-term solutions in an effort to get the millions of tonnes of stranded grain moving again.
Fast forward to 2016. While a smaller crop, a warmer winter and falling oil demand have helped grain movement improve, long-term solutions designed to ensure 2013-14’s crisis doesn’t happen again have yet to be put in place.
The Fair Rail for Grain Farmers Act, meanwhile, which expanded monitoring power for Edmonton based Quorum Corp, expires in August, just weeks before peak prairie grain movement begins in the fall.
Improving Canada’s grain transportation system remains one of the number one concerns of Canada’s agriculture industry, routinely cropping up in conversation at industry conferences.
Garneau has said he and his staff are reviewing Emerson’s report. The minister has said he wants to spend the spring and summer consulting with stakeholders and Canadians about its findings.
However, the transport minister’s timeline could prove challenging for Canada’s grain industry.
The Fair Rail for Grain Farmers Act was introduced to Parliament in March 2014. Considered emergency legislation, the act passed through the House of Commons and the Senate with bi-partisan support.
Even with the accelerated timeline, the bill did not receive royal assent until May 29, 2014, just weeks before Parliament rose for the summer recess.
If the Liberals plan to introduce new legislation to fix Canada’s grain transportation system or extend the current legislation, they will likely need to follow a similar timeline, particularly if those changes are to be in place for the start of the new crop year.
In an interview, agriculture minister Lawrence MacAulay said he is well aware of the act’s August expiration date, but said he wants to consult with stakeholders before taking action.
“I certainly understand how important the transportation system is to the grain industry, but I think it would be a bit premature and immature for me to indicate what we’re going to do right now,” MacAulay said.
“I want to hear from the stakeholders … and with that we’ll put together a system … hopefully … for many years down the road.”
Conservative agriculture critic Chris Warkentin has said the federal government must put forward solutions before the Fair Rail for Grain Farmers Act expires.
Meanwhile, NDP transport critic Linda Duncan said she has support on the House of Commons’ transport committee to study Emerson’s report as it pertains to rail safety.
