SWIFT CURRENT, Sask. - Federal Transport Minister Collenette is rewarding the railways for shafting farmers according to Stewart Wells, Saskatchewan Coordinator for the National Farmers Union.

"The winter of 1996/97 was marked by extremely poor grain movement performance by the railways. The Canadian Transportation Authority agreed with the Canadian Wheat Board that railways unfairly discriminated against grain farmers by hauling other commodities and leaving grain sitting on the farms. As a result of the CWB action, both CN and CP settled out-of-court and paid compensation to farmers, noted Wells.

"Now, Collenette's answer to a problem deliberately created by the railways is to implement the Estey Report and give the railways more power and money," said Wells. He pointed out that the railways have a history of claiming that if they are just paid a little more and given a little more power, everything will be O.K.

• In the 1970s, the railways said that they would move grain if the government would upgrade branchlines. Taxpayers spent $900 million on branchline rehabilitation from the late 1970s to late 80s.
  
• Next, the railways said that they would move grain if the government bought hopper cars. The government bought 13,000 between 1972 and 1986 at a cost of $560 million.
  
• In the early 1980s, the railways said that grain would move quickly and efficiently on a largely double-tracked mainline system if the government would get rid of the Crow Rate. The government did so in 1983.
  
• In the 1990s the railways said that they would move grain if the government did away with the Crow Benefit and deregulated grain transportation. The replacement of the WGTA with the CTA in 1996 did largely this.

"Farmers are looking for much-needed representation in Ottawa, but Collenette's actions fit the usual government pattern of kow-towing to railway and grain company interests. Estey's recommendations will compound the financial disaster for farmers. Estey's proposals would transfer about 15% more of the grain farmers' gross income to the railways," said Wells. A report by four agricultural economists: The Impact of Deregulation by Gray, Brooks, Baylis, and Fulton details probable freight rate increases under deregulation.

"Just imagine, farmers in one of the richest countries in the world being starved out because the greed of rail and grain companies is insatiable," concluded Wells.

For more information:

• Stewart Wells, NFU Saskatchewan Coordinator: (306) 773-6852
  
• Darrin Qualman, Executive Secretary: (306) 652-9465