Will note the following quotes from this week's Western Producer (Page 6 May 8). Quote:
"No organization watn to be in the position of having to claw back money from it customers.."
Serious consideration was given to revising the payment terms so this won't happen again, but the board decided to stick with the current contracts because the circumstances that lead to the payment were so unusual.
We (NOT SURE OPERATIONS SIDE OR THE CWB BOARD OF DIRECTORS - MAYBE THEY ARE THE SAME TONGUE IN CHEEK) just don't think the cost-benefit is there to go through designing and implementing a whole new payment system for something that may never happpen again". End quote.
Interesting comment on how the CWB (perhaps both Board of Directors and Opeerations) view operational risk around the programs and their ability to modify behavior/contract terms to satisfy the needs of changing circumstances. How many grain companies would have a contract problem like this and not modify their behavior/processes to rectify the problem.
Changes need to be made to the FPC on whole bunch of levels but there seems to be no willingness to do it.
"No organization watn to be in the position of having to claw back money from it customers.."
Serious consideration was given to revising the payment terms so this won't happen again, but the board decided to stick with the current contracts because the circumstances that lead to the payment were so unusual.
We (NOT SURE OPERATIONS SIDE OR THE CWB BOARD OF DIRECTORS - MAYBE THEY ARE THE SAME TONGUE IN CHEEK) just don't think the cost-benefit is there to go through designing and implementing a whole new payment system for something that may never happpen again". End quote.
Interesting comment on how the CWB (perhaps both Board of Directors and Opeerations) view operational risk around the programs and their ability to modify behavior/contract terms to satisfy the needs of changing circumstances. How many grain companies would have a contract problem like this and not modify their behavior/processes to rectify the problem.
Changes need to be made to the FPC on whole bunch of levels but there seems to be no willingness to do it.
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