national
farmers union
WASKATENAU, Alta.- Almost all of Willard Estey's recommendations are based on assumed competition between the railways. With competition, he argued, the government could eliminate the rate cap, demote the Canadian Wheat Board to port-buyer status and turn hopper car alllocation over to the grain companies. CN and CP, however, have made it clear both publicly and in the current talks underway in Winnipeg, that they are not interested in talking about real competition.
Estey's report, released in late December, 1998, recommended (#8): "the opening up of the Canadian rail system to competition by and between all competent rail operators, including shortline railways." Estey believed that competition is the key and that competition relies on open access. His report stated that with competition freight rates will be reduced by $40 million over six years.
The Railways have even stated that Mr.Estey misrepresented their views in his report. :The railways had several months to comment on the validity of Estey's report, are they now saying that the Kroeger process is proceeding based on at least one fundamentally flawed term of reference," asked NFU President Cory Ollikka, "or are they simply trying to reap as much profit as possible from farmers by deregulating the system and scuttling all efforts to bring about some degree of competition?"
"The railways have made their position very clear: real, meaningful competition and open access are not in the cards. They are claiming that they already compete and are vigorously blocking any real discussion about how we might implement Estey's recommendation #8 to institute open access. The railways like everything about a commercial system except the competition that such a system entails," said Ollikka.
Ollikka concluded: "The Kroeger process is losing legitimacy by the day. Many farmers were very critical of the Estey Report when it failed to recognize the regulatory protections that serve their needs in the transportation system - things like a strong role for the CWB in car allocation, and capped rates. Whether Mr.Estey also got it wrong on railway competition or whether the railways are only trying to steer the reform process farther and farther away from meaningful change that could benefit farmers, the results seem doomed to be the same - farmers will bee the losers in the end."
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