NEWS RELEASE

September 13, 2000                                                                                                 For Immediate Release

GOVERNMENT'S NEW GRAIN TRANSPORTATION BILL HEADED FOR DISASTER

"The CWB's inability to negotiate with the grain companies will cost farmers millions"

 

Yorkton - Garry Breitkreuz, Official Opposition Agriculture Critic and MP for Yorkton - Melville, wants Canadian Wheat Board Minister, Ralph Goodale and Transport Minister, David Collenette to deal with the problems of Bill C-34, the new grain transportation legislation. "This legislation has been in effect for only one month and already we are seeing the system starting to backlog and cost farmers money. The government created this flawed legislation - it is time for them to deal with the consequences," demanded Breitkreuz.

Talks between the Canadian Wheat Board and the Western Grain Elevator Association have stalled over the issue of rail car allocation. The elevator companies are concerned they will not be able to get the rail cars when they need them. That concern was evident with the first tender issued by the CWB as part of the new grain transportation legislation. The contract call was for 250 thousand tonnes of Board grain and all they achieved contracts for was 17 thousand tonnes or 7% of their goal.

Breitkreuz is quite concerned about lack of progress under the new grain transportation system. "The CWB's inability to work with the Western Grain Elevator Association on how the rail cars will be allocated is going to cost farmers millions. The elevator system on the prairies could soon be plugged if grain companies aren't able to get railcars when they need them. This lack of storage space could force farmers to haul further distances or store their grain on the ground costing them more in transportation costs and reducing the quality of their product, " stated Breitkreuz.

The problems with the car allocation system is also impacting on non-Board crops. "I have been told about people who have booked rail cars for specialty crops but have not had the cars delivered when they need them. This is a result of the CWB's control over the car allocation system. Because the board grains are taking priority over the non-Board shipments, farmers trying to ship specialty crops could also experience some troubles. This will cost them more money at a time when they are already experiencing great difficulties," said Breitkreuz.

The federal government is entirely responsible for the problems we are seeing with the system. "They had the opportunity to implement a commercial, contract based system that would have saved farmers $300 million annually. Instead, what we have is the continued control over farmers and a system that is costly and inefficient. Unless the Ministers responsible step in and take action immediately, the problems and slow downs in the transportation system will escalate to the point of collapse," declared Breitkreuz.

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For more information please call:

Yorkton: 1-800-667-6606

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