South Peace Historical Society

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  • Table of Contents

    • Part 1: First Nations of the Peace River Region
    • Part 2: The Fur Trade Era
    • Part 3: Transportation and Communication
    • Part 4: Old Timers and the Price of Land
    • Part 5: Dawson Creek: The Story of the Community
    • Part 6: Mysteries, Adventures and Indian Legends
    • Part 7: Arts, Crafts and Recreation
    • Part 8: Agriculture
    • Part 9: Church Histories
    • Part 10: Schools
    • Part 11: Health Care
    • Part 12: Industries and Enterprises
    • Part 13: Policing the Peace
    • Part 14: Pouce Coupe, Rolla, and Other South Peace Communities
    • Part 15: Chetwynd and the Fort St. John Area
    • Part 16: The Alberta Peace
    • Part 17: Natural History of the Peace River Region
    • Part 18: Interviews with Old Timers
    • Part 19: Remembering Our Veterans

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BN08-15: Wheat Board – Cheaper Grain Transportation

Recent History – 1999

March 22, 1999

By Mark Nielsen, Daily News Staff

The Canadian Wheat Board (CWB) has released an action plan intended to give farmers a better deal in the nation’s grain transportation system. The plan is in answer to the Estey report on the grain transportation, which was released in late-December. It calls for a more competitive and lower-cost grain transportation environment and to strengthen commercial contracts between the CWB, grain companies, and railways.

District One director Art Macklin said that the Canadian rail system is essentially a duopoly, so the plan calls for the federal government to impose rates that would be consistent with what would be charged if there really was competition.

“What we’re saying is let’s use the appropriate tools where they work best,” he said.

“In some areas competition will function and will be beneficial, and where that can be implemented that’s great. But in some areas, it would be very naive to think that the railways are going to compete with each other.”

In late-December, Justice Willard Estey released a report with recommendations for reforming the grain transportation system. Grain producers say it heavily favours the rail companies at the expense of their interests.

Prime among those concerns is removal of the freight rate cap. The CWB points to the United States as an example of what will happen if non-regulated rates are allowed in a non-competitive environment.

The statutory rate from Edmonton to Vancouver is $27.25 per tonne while the rate from Shelby, Montana to Portland, Oregon, which is roughly the same distance, is $52 per tonne.

The CWB also opposes Estey’s recommendation to eliminate the Car Allocation Policy Group and to eliminate the CWB’s role in transportation and handling.

Macklin said the government wants to have the final changes in effect by August 1, 2000.

 

This article is taken from the Peace River Block Daily News, Dawson Creek, with the permission of the publisher. The Daily News retains all rights relating to this material. The information in this article is intended solely for research or general interest purposes.

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BN08-16: Grain Elevators Feeling the Pinch »

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