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Saskatchewan Supports Federal Action on Grain Transportation

Released on March 7, 2014

Today, Premier Wall and Agriculture Minister Lyle Stewart commended the federal government for introducing new measures to address the backlog in the grain transportation system.

“We had asked for immediate action including emergency legislation to be introduced and we are pleased the federal government has made this commitment,” Wall said.  “Clearing this grain transportation backlog has been the number one priority for our government and these federal measures will help our producers to finally get their product to ports.  We will continue standing up for farmers to get this grain moved.”

The federal government announced an Order in Council has been signed that will order the railways to deliver one million tonnes of grain on a sustained level to domestic, U.S. and port positions; fines of up to $100,000 per day will be issued for non-compliance; and railways will report tonnage delivered on a weekly basis.

The federal government also announced it will introduce emergency legislation in the near future.

“Today’s federal Order in Council with interim measures is a good first step and we look forward to working closely with the federal government to ensure the emergency legislation includes mandatory service level agreements, reciprocal penalties for grain shippers and railways, and specific commitments for tonnage of grain delivered,” Stewart said.

In addition, the provincial government will be monitoring producer deliveries to grain shippers and basis levels with the expectation that grain companies will have staff on hand 24 hours per day and seven days per week at both inland terminals and at port whenever necessary.

“Producers have ultimately been left bearing the cost for this crisis and we fully expect every player in the supply chain to do their part to get this grain moved,” Stewart said.  “This includes both grain companies and railways and we expect penalties to be levied against either party if they are not honouring their commitments.”

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For more information, contact:

Kathy Young
Executive Council
Regina
Phone: 306-787-4025
Email: kathy.young@gov.sk.ca
Cell: 306-526-8927

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