SARM calls for tough penalties

The federal government should impose harsher penalties on the railways if they fail to move the grain again this year, said the Saskatchewan Association of Rural Municipalities following a meeting with senior federal and provincial cabinet ministers last week in Regina.

“We cannot have a repeat of the 2013-14 railway performance, so SARM stresses the importance of stiffer penalties as a way of enforcement,’’ said SARM president Ray Orb, referring to the 2013-14 grain backlog caused by the record crop, severe winter weather and lack of railway and grain handling capacity that cost western farmers billions of dollars in lost income and sales.

Last Thursday, federal Agriculture Minister Lawrence MacAulay, Public Safety Minister Ralph Goodale, Kate Young, parliamentary secretary to Transport Minister Marc Garneau, and Saskatchewan Agriculture Minister Lyle Stewart attended a roundtable meeting in Regina focused on grain transportation and the recent review of the Canada Transportation Act.

SARM raised several issues at the roundtable, including increasing penalties for failing to move grain, ensuring grain movement during the winter months, the maximum revenue entitlement (MRE) and the Port of Churchill.

Orb said the Fair Rail for Grain Farmers Act, which was passed in spring of 2014 by the former Harper government, had provisions for fines, but few, if any, were imposed on the railways. “Basically, they didn’t enforce it,’’ Orb said. “As far as we know, the railways didn’t pay any fines. Put some teeth in it.’’

The MRE is the limit on the overall revenue that can be earned by the national railways for shipping regulated grain originating from Western Canada. SARM’s membership recently passed a resolution calling for a review of the formula, but the recent report of the CTA review called for the gradual phasing out of the MRE.

“We think there are some provisions in the MRE that are good and we certainly don’t want those phased out.’’

SARM is also lobbying for increased grain movement during the winter months, as it reduces municipal road damage, and wants the railways to demonstrate that their crews and equipment are prepared for winter.

Another issue requiring urgent action is the recent announcement that the Port of Churchill is no longer accepting grain shipments. The strategic importance of Churchill will increase once the Comprehensive Economic and Trade Agreement (CETA) comes into force as the northern Manitoba port provides a cost-effective access point to international markets through Hudson Bay, SARM said

We cannot have a repeat of the 2013-14 railway performance, so SARM stresses the importance of stiffer penalties as a way of enforcement.