NEWS RELEASE  

May 17, 1995   For Immediate Release 

PRIVATIZATION OF CN, THE CROW BUY-OUT & THE PORT OF CHURCHILL  

Ottawa - Garry Breitkreuz, MP for Yorkton-Melville, supported the intentions of the government to privatize CN Rail during first reading debate of Bill C-89, gave the government some free advice and advanced some new ideas. Breitkreuz pointed out some obvious flaws that need to be fixed in the bill including: prohibiting the government from arbitrarily cancelling all or part of CN's debts prior to privatization; removing the requirement to leave CN's headquarters in Montreal; removing the requirement that CN comply with the government's policy of official bilingualism; and removing the 15% ownership restriction. 

"Unfortunately, this bill excludes from privatization a major part of CN's assets such as non-railway real estate assets, probably the most valuable part of the company. Reformers would like to see these assets sold off before the privatization effort takes place in order to reduce CN's debt load," suggested Breitkreuz. He also asked the government to ensure the legislation addresses the needs of each of the groups affected by the privatization of CN Rail: the managers, the workers, the customers, the taxpayers, and the investors. 

Breitkreuz asked the government to look at establishing a "public track authority" as proposed by the Economic Council of Canada in 1986 which would operate similar to our highway system. "This would eliminate the tax disadvantage placed on rail companies because, while they pay fuel taxes, they also have to pay the full costs of maintaining their own rail bed. Trucks, on the other hand, pay fuel taxes but their roadbed, the highways, are maintained at public expense," explained Breitkreuz. 

The Saskatchewan MP also suggested linking two or more government objectives into one. For example, the government is giving land-owners in the west a one-time pay out for eliminating the WGTA subsidy for the railways, commonly known as the Crow rate. "Would it be possible to give western farmers the choice to have their Crow rate buy out in the form of CN shares rather than cash?" asked Breitkreuz. "If done properly, the government could overcome opposition to both the Crow rate buy-out and the privatization of CN with one move." 

Finally, Breitkreuz urged the government to do some real creative thinking regarding the future of the Churchill line and the Port of Churchill. "The privatization of CN should be seen as an opportunity to privatize, expand markets, modernize and increase exports and imports through the Port of Churchill. "This is the most-cost effective shipping route for bulk commodities to our customers in Europe, Africa and South America. I respectfully ask the government to look at the Churchill line and the Port of Churchill, not as a liability, but as an opportunity requiring creative thinking and a cooperative, creative privatization strategy." 

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If you need more information please call:

Yorkton: (306) 782-3309 

Ottawa: (613) 992-4394