The review of the
Canada Transportation Act and the current government’s response to it have been watched closely by farmers and the grain sector.
No one wants a repeat of the situation that occurred in the winter of 2013-14. That painful experience, though, did put a spotlight on grain handling and transportation issues, which have been long identified but never systematically addressed. These include issues we discussed in a previous blog post.
There has been a lot of activity over the last three years on the topic of grain transportation, with several interrelated events and initiatives. Here is a brief review of how this has played out and where we may be going this fall:
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Winter 2013-14 – Grain transportation system breaks down.
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March 7, 2014 – Government implements ‘Order in Council’, which initiates mandatory volume movements.
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March 26, 2014 – Government announces legislation (Bill C-30:
The Fair Rail for Grain Farmers Act) and intention to accelerate the
Canada Transportation Act review (CTA Review) by one year.
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May 25, 2014 – Minister of Transport launches CTA Review (report to be completed within 18 months).
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August 1,
2014 – Bill C-30 provisions take effect. This includes extending interswitching from 30 to 160 kilometers. Act will sunset on August 1, 2016.
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August 3, 2014 – Government implements second ‘Order in Council’, extending mandatory minimum volumes until late November.
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Fall 2014 - Spring 2015 – Producer groups and grain sector interact repeatedly with Review panel, legislators and officials, and table formal submissions. The
Crop Logistics Working Group III is struck to provide input to Minister of Agriculture.
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December 21, 2015 – CTA Review Report submitted by panel to the new Minister of Transport.
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February 25, 2016 – CTA Review Report is publicly released. The report is two volumes totaling over 500 pages.
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June 15, 2016 – Government extends the provision of Bill C-30 by one year to August 1, 2017.
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May – August 2016 – Minister of Transport undertakes consultation in order to develop “A Vision for Transportation”, the Minister of Agriculture convened two roundtables to discuss grain transportation.
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September 28, 2016 – Minister of Transport is meeting with provincial and territorial ministers to discuss his Vision.
While our focus has been on the CTA Review, the mandate of the Minister of Transport is to undertake a full review of the grain transportation system. This is broader than simply the CTA Review. It is widely expected that the Minister will release a Vision this fall that will include references to the CTA Review as opposed to a detailed response. From there, a series of legislative actions may flow out over the next several years.
Throughout this process, CCGA and the grain sector will be advocating on behalf of farmers. The goal is to balance the relationship between railway and shipper, which can be achieved through six major changes:
- Make extended interswitching permanent.
- Strengthen the definition of “adequate and suitable” accommodation in the Canada Transportation Act.
- Strengthen commercial accountability.
- Maintain the Maximum Revenue Entitlement (MRE).
- Broaden the powers and mandate of the Canadian Transportation Agency.
- Maintain information and transparency.
Progress has been made, including the extension of interswitching limits, but the work continues toward striking a true balance that benefits farmers as they look to market their crop.