JANUARY 8, 2001
NFU ASKS COLLENETTE TO SAFEGUARD SIDINGS
WASKATENAU, Alta.--In a letter today to Federal Minister of Transport David Collenette and his provincial colleagues, NFU President Cory Ollikka warned that railways are destroying railway sidings at an alarming rate: a move that will heap costs onto farmers.
"On August 1, 2000, CN removed 82 sidings from its rates scale. It has since removed 20 more. CN is quickly dismantling many of these sidings. CP is acting likewise. By de-listing, destroying, or raising minimum train run requirements, CN and CP are moving quickly to reduce the number of sidings where farmers can load producer cars," said Ollikka's letter.
The destruction of sidings will lead to higher transportation costs, but also higher handling costs.
"The Canada Grain Act guarantees farmers' right to load producer cars. This right was intended to be a check on grain company power. If grain companies raise elevator tariffs too high, farmers need only exercise their right to load producer cars and, thus, bypass the companies and put downward pressure on tariffs. While farmers still retain their right to load producer cars, with the destruction of sidings farmers are losing their effective right to do so," said Ollikka.
Ollikka recommended that Collenette: "instruct the Chief Commissioner of the Canadian Grain Commission to act immediately to ensure that farmers retain their effective right to load producer cars, as laid out in the Canada Grain Act. Further, the NFU asks that you amend the Canada Transportation Act (CTA) to include provisions that require railways to sell sidings to interested governments for salvage value. Finally, we ask that the CTA be amended to establish a process whereby farmers and others can obtain permits to build sidings along railway lines."
Ollikka concluded: "The issue of sidings is critical. If we lose sidings, many farmers effectively lose their right to load producer cars. As this happens, those farmers lose their ability to discipline increasingly-powerful grain companies. The current imbalance of power between farmers and agribusiness companies is a significant cause of the farm income crisis. The future balance of power and profits between farmers and corporations will be a significant determinant of whether the farm income crisis eases or intensifies. As such, it will help determine the futures of thousands of farm families and the makeup of the prairie landscape."
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For More Information:
Cory Ollikka, NFU President: (780) 383-2180
Darrin Qualman, Exec. Sec.: (306) 652-9465