Wall sends ministers to meet with grain companies

REGINA — A group of Saskatchewan provincial politicians will meet with grain companies in Winnipeg this week to encourage action on the ongoing backlog of grain shipments, Premier Brad Wall said.

Agriculture Minister Lyle Stewart, Economy Minister Bill Boyd, Highways and Infrastructure Minister Don McMorris and Scott Moe, legislative secretary to the agriculture minister, will use the meetings to encourage the companies to pursue level-of-service contracts under the federal Fair Rail Freight Service Act.

The act requires rail companies to offer a service agreement to companies shipping goods by rail, if requested. If an agreement can’t be reached, shippers can use an arbitration process to establish terms of service. For each violation of an arbitrated agreement, a penalty of up to $100,000 could be issued against the rail company by the Canadian Transportation Agency.

“We’re not saying, ‘Go there today.’ We’re saying, though, we need to start talking about all of the options because of how serious the matter is,” Wall said.

Stewart said the relatively new legislation hasn’t been tested, and the province wants the rail companies to consider testing it if they’re unhappy with the service.

“The idea is to put some pressure on the railways to actually provide service — and service in a timely fashion,” he said.

Wall said Saskatchewan grain producers are getting lower prices for shipments due to the ongoing backlog.

“This is an urgent matter,” he said. However, he described levying penalties against the railroads as “the very last resort.”

Wall acknowledged factors like weather have contributed to the backlog, but he said more engineers and more locomotives are needed — and said the government will continue to push the rail companies to add capacity and plan for the future.

“In a world where the fastest growing economies want food security and energy security, that’s what Canada does best,” he said.

“I like our country’s chances to continue to outperform other Western economies based on that truth, but only if we can get the goods to those emerging economies, only if we can move the product. This is a huge issue for the country. ”

Regina Liberal MP Ralph Goodale said in a statement Wednesday that the existing federal legislation isn’t likely to be effective.

“Getting the grain companies to negotiate service agreements with the railways is fine, but mostly meaningless since the definitions in the new law are too vague to be useful and the enforcement tool is a fine paid to the government, not liquidated damages paid to farmers,” Goodale said.

Wall said he doesn’t think further federal legislation is needed yet. However, if the situation does not improve, the province will recommend legislative action to ensure accountability, according to the Ministry of Agriculture.

Former Canadian Wheat Board director Stewart Wells said Wall understands the shipping advantages for potash via Canpotex, but failed to see the similar benefits the wheat board offered.

“Now that the grain companies and railways are just starting to flex their muscles, disgruntled farmers are picking up the phones and the premier is in a bind,” Wells said.

The provincial Opposition said in a statement Wednesday that it has been calling for penalties against the railways for weeks, and that the plan to send politicians to Winnipeg sounds “very slowmoving.”

—With files from LeaderPost