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CANADIAN TRANSPORTATION AGENCY DECISION ON CANADIAN WHEAT BOARD COMPLAINT AGAINST CP RAIL PLEASING

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

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