Released on September 30, 1998
Highways and Transportation Minister Judy Bradley said today she is
generally pleased with the Canadian Transportation Agency (CTA) ruling
on the Canadian Wheat Board complaint against CP Rail for poor service
during the winter of 1996/97.
"The CTA ruling has confirmed our position that commodities other than
grain received preferential service over grain that winter," Bradley
said. "Saskatchewan producers said all along that was the case and
that was what we proved in the hearings."
That poor level of service cost producers an estimated $65 million in
1997. Even though the CTA agreed that service obligations were not
met by CP Rail, the CTA did not grant relief for damages. It is our
understanding that the CWB will have to seek compensation through the
court system. Saskatchewan intervened in support of the Canadian
Wheat Board complaint during hearings earlier this year.
"While producers will view this as a partial victory, it is disturbing
that they have had to expend considerable cost through the Canadian
Wheat Board and the CTA process to obtain this ruling," Bradley said.
"While we have for some time been identifying weaknesses in the
federal legislation about branch line abandonment, we now find that we
have another costly weakness in regard to the level of service.
"Saskatchewan was seeking a ruling that would ensure an adequate
level of service is provided by the railways for future crop
years. We are extremely concerned that our producers not suffer
another economic loss like this ever again.
"This is another indication that federal legislation is not
working for the benefit of Saskatchewan producers. That is why
the efforts of Justice Estey in the federal Grain Review are so
important in Saskatchewan," Bradley said.
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For more information, contact:
Bernie Churko
Executive Director, Logistics, Planning & Compliance
Regina
Phone: (306) 787-4866