Newsroom
2001
July 20, 2001
CWB concerned over cta review recommendations
Winnipeg -- The Canadian Wheat Board (CWB) has expressed
dismay over the recommendations put forth by the Canadian
Transportation Act (CTA) Review Panel that were released yesterday
by federal Transport Minister David Collenette. The CWB is
committed to maximizing farmers´ returns and will vigorously
oppose any changes that will increase their costs.
"The Panel recommendations, if implemented, would leave individual
farmers at the mercy of the railways," said Board of Directors
Chair Ken Ritter. "We see the potential for costs to increase under
the changes that the panel has suggested. It appears that the panel
was more concerned about railway profitability than the viability
of farmers."
The 360-page CTA Panel Review report contains several
recommendations that could adversely affect western Canadian
farmers. This comes at a time when they are already hard hit by
drought conditions in many parts of the Prairies and ongoing
subsidies in competing nations.
Of particular concern is the lack of recommendations to enhance
meaningful competition. Many farming communities are serviced by
one rail carrier. There exists a real danger in these captive
markets that farmers may be charged the maximum amount to move
their grain. Given this, the CWB is adamant that there must be a
way to limit the rates that railways can charge. The CTA Panel
Review indicates that the current revenue cap could be repealed in
favor of a system that operates on a commercial basis. However, it
then suggests a series of rules that will make it extremely
difficult for other carriers to compete when they need to access a
host railway´s line. For example, a host railway will be able
to set running rights´ access fees at levels that compensate
them for any lost revenue that might result from competition. This
will effectively price rival carriers out of the market. The Panel
also recommends placing the onus on the applicant to justify access
to running rights rather than on the railway to justify why it is
not in the public interest to allow a competitor onto its line.
As well, the CTA Review affords no protection for farmers wishing
to use railway sidings to load producer cars. It simply states that
railways must publish a list of sidings and that 60 days of public
notice must be provided before these sidings are torn down. The CWB
fears that this will hamper farmers´ ability to use this
option.
As Transport Canada reviews the CTA Review Panel´s
recommendations, it will hopefully seek ongoing input from the
major stakeholders in the transportation industry. The CWB fully
intends to ensure that the transportation blueprint that results
will in fact consider farmers´ needs and that the costs for
moving grain in Western Canada are as economical as possible.
The CWB is the world´s largest farmer-controlled wheat and
barley marketer. Headquartered in Winnipeg, Manitoba, it is one of
Canada´s biggest exporters and the largest net earner of
foreign exchange. Marketing Prairie-grown wheat and barley to over
70 countries around the world, the CWB returns all sales revenues,
less the costs of marketing, to farmers in Western Canada.