March 14, 2014
Manitoba Provides Direction on Federal Legislation Dealing with Grain Backlog
Fair access to grain cars and a longer-term commitment to improving rail service across the country have been identified as critical steps to address the current grain backlog in a submission sent to the federal transport and agriculture ministers by the Manitoba government today, Agriculture, Food and Rural Development Minister Ron Kostyshyn and Infrastructure and Transportation Minister Steve Ashton have announced.
“Manitoba’s grain transportation system is at a standstill and we are calling on the federal government to use every tool available to address the backlog,” said Minister Kostyshyn. “As more railcars are put into the system, it’s critical for Manitoba to receive a fair allocation so we can get grain to market and money into producers’ pockets.”
The submission, which was developed following consultation with industry stakeholders,provides Manitoba’s input into emergency federal legislation to resolve the grain transportation crisis. It recommends four key areas that must be part of the federal response to this situation:
- market responsiveness, to ensure rail resources meet market demands;
- performance standards, to further clarify and define the railways’ obligations to shippers;
- balanced accountability, to establish financial penalties for rail companies’ service failures; and
- enhanced authority and legislative resources, to offer faster and less-expensive processes to arbitrate services disputes between shippers and the rail companies.
“Work is ongoing here in Manitoba to find additional solutions for farmers affected by the grain backlog,” said Minister Ashton. “Our task force continues to look at ways to mitigate risks related to spring flooding and support producers as they look for alternate transportation options.”
Premier Greg Selinger createdof a task force of senior provincial ministersearlier this monthto address this issue in partnership with industry stakeholders. The task force includes co-chairs ministers Kostyshyn and Ashton, Municipal Government Minister Stan Struthers and Jobs and the Economy Minister Theresa Oswald.
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