SASKATOON, Sask.-NFU President Cory Ollikka sent a letter today to Federal Transportation Minister David Collenette. With Arthur Kroeger's report on grain handling and transportation due next week, Ollikka told Collenette that report will not represent an industry consensus. However, there is still an opportunity to make transportation changes which protect farmers' interests and lower their costs.

"Farmers' interests are very different from those of CN or Sask. Wheat Pool. Railways, grain companies, and farmers did not reach consensus on major issues such as open access, final offer arbitration, hopper-car ownership, or the role of the CWB. The most important issues under discussion remain up in the air. If Arthur Kroeger's report contains recommendations, they will reflect his opinions and biases, not agreement among farmers, railways, and grain companies," stated Ollikka's letter to Collenette.

Ollikka pointed to widespread farmer dissatisfaction with the Kroeger talks. "Speaking with other farm groups, we find a general expectation that the Kroeger report will fail to reflect farmers' needs. These were rushed and ill-conceived talks, begun during seeding and ended in harvest. Further, basing the talks on the railway-friendly Estey Report made consensus even more difficult," said Ollikka.

Ollikka reminded Collenette that the failed Kroeger talks leave $224 million of farmers' money on the table. The CWB and independent economists estimate that current freight rates are $200 - $224 million above the level that they would have been had quadrennial costing reviews and productivity-gain adjustments continued. This amount works out to approx. $5,000 for the average grain farmer.

In 1998, the combined profits of Canadian National (CN) and Canadian Pacific (CP) totaled $586 million. This amount exceeded the combined 1998 net farm income of the approximately 80,000 farm families in Manitoba and Saskatchewan.

If Minister Collenette is looking for consensus in the wake of the failed Kroeger initiative, he need look no further than the nearly unanimous support for the re-introduction of productivity-gain sharing. The CWB, Agricore, Alberta Soft Wheat Producers Commission, the Canadian Federation of Agriculture, the Hudson Bay Route Association, Keystone Agricultural Producers, the NFU, the Sask. Association of Rural Municipalities, Sask. Wheat Pool, Wild Rose Agricultural Producers, Winter Cereals Canada Inc, and United Grain Growers have all endorsed a resumption of costing reviews and productivity-gain sharing.

Ollikka urged Collenette to maximize savings for farmers, not to bow to railway pressure. "Farmers are angry and frustrated," stated Ollikka. "Last week's Sask. election results should be a warning to politicians who underestimate farmers' financial pain and stress. The farm community is like a wounded, angry bull. If that angry bull sees Ottawa proceeding with transportation changes which result in torn-up branchlines, closed elevators, higher freight rates, and more power and profit for railways, then Ottawa politicians can expect an equally harsh reaction," he said.

For More Information:

• Cory Ollikka, President: (780) 383-2148 OR (780) 499-4805
  
• Darrin Qualman, Exec. Sec.: (306) 652-9465

Back to Index of News Releases