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Should CN and CP pay 'Prairie grain producers' back?

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    Should CN and CP pay 'Prairie grain producers' back?

    Canadian Transportation Agency Decision No. 67-R-2008 paragraph nine
    states:

    9.
    It is estimated that during the first seven years under the Revenue Cap
    Program (i.e. from crop year 2000-2001 to crop year 2006-2007) the
    railway companies received more than $550 million for hopper car
    maintenance costs while incurring less than $250 million for this
    maintenance. Thus, in the period, the railway companies have received at
    least $300 million more than they have spent on hopper car maintenance,
    and this has been paid by Prairie grain producers. Moreover, the difference
    between the amount the railway companies receive under the Revenue Cap
    Program and what they incur as hopper car maintenance costs has been
    growing at an increasing rate.

    #2
    On the pendulum of more regulation or less
    regulation, I would guess the Harper gov't swings
    towards less regulation. I can't see us getting this
    money back or Harper further restricting RRs in the
    future. The only thing I could hope for is better service
    for the money we pay.

    Comment


      #3
      I believe the Government fixed the problem after CN and CP went over the Cap and lost the case before the courts.

      The WGRF got the $70M which included a penalty for going over the Transportation Cap.

      Please correct me if I am wrong.

      Comment


        #4
        I believe the settlement was on 2007-08.

        Comment


          #5
          The whole process of ending the monopoly has
          to include the rail service review and changes to
          the Canada Grain Act in regards to the CGC.

          The rail service review outlined a " penalty
          process" for both the shipper and the railway
          should either fail to perform. At least that's what
          I understand, someone correct me if I'm wrong.
          If these measures aren't addressed when we go
          to an open market this overcharging as well as
          failure to perform will be even more prevalent.

          I don't agree with much the cwb does but they
          did have the ability to somewhat keep the
          railways in line.

          Comment


            #6
            $short,

            I understand the changes to CTA legislation must be reintroduced as they were lost when the election was forced.

            There were very helpful shipper freindly amendments proposed. The CWB has done some work to force arbitrage... much more could have been initiated by Goodale had he truly been working for growers. This is what I was talking about from 2000-06.

            Goodale and the CTA failed to do their jobs... and grain growers paid a huge cost. Much more than $300M. Market arbitage was stopped in so many ways. Small grain handlers paid so much... including with the destruction of their lifes work and businesses.

            Comment

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