national
farmers union
national
farmers unionSASKATOON, Sask.-"Jean Chretien stated that the aid announced today was to compensate farmers for increased grain transportation costs. However, his modest payment doesn't begin to make up for the billions of dollars that his government's disastrous grain transportation changes have cost farmers," said NFU Vice-President Fred Tait.
"Chretien's 1995 cancellation of the Crow Benefit has cost western farmers $2.5 billion over the last four-and-a-half years. Today's announcement is an admission by Chretien that terminating the Crow was a costly error. While we welcome his admission, $240 million does not begin to undo the damage that he has done," said Tait.
NFU Transportation Committee Chair Terry Boehm pointed out: "The most sinister feature of this announcement is that it comes just days or weeks before the federal government will announce new grain transportation legislation. Since the federal government began deregulating grain transportation in 1984, farmers' freight rates have risen 700%. This new federal money may just be a devious, short-term strategy to buy off farmers and distract our attention while Chretien and Collenette bring in yet another round of transportation deregulation measures that will cost farmers hundreds of millions per year. This is the same 'give-a-little-take-a-lot' strategy they used in 1995 when they canceled the Crow Benefit."
According to rumors, the federal government will announce new grain transportation legislation that will replace the current freight rate cap with a revenue cap and weaken the Canadian Wheat Board's role in transportation. "Grain and rail companies, not farmers, are asking for these changes. Removing the rate cap and the CWB will hand the grain transportation system over to the railways and grain companies. It will enable them to accelerate branchline abandonment and elevator closure and to increase their profits at the expense of farmers," said Boehm.
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