CWB Bank

[Everest]

A question for those of you who know the intricacies of the CWB and its Act. Is it proper, and does the CWB have the authority to lend my money from the pool accounts to outside third parties?

Apparently in sworn testimony before the Standing Committee on Agriculture, officers of the Farmers Rail Car Coalition (FRCC) stated that they have had forgivable loans advanced to them from the CWB. From what I can gather, it is well in excess of $100,000, and will not necessarily have to be paid back. I have no information on the interest rate applied.

This calls into question how many other entities have been loaned money from the pool accounts, and what amounts and conditions apply to these loans.

Do any of the rest of you find it objectionable that the CWB puts our money at risk like this, and uses it for non-market related purposes? From what I can see, the FRCC is a special interest group hoping to acquire a government asset for nothing, with membership made up of commercial enterprises, governmental institutions, and some farm groups. Why do they need my money? Why would the CWB bankroll them?

[Vader]

The options for the disposition of the Government hopper car fleet are:

a) status quo
b) commercial sale
c) give to FRCC for $1.00

Option b) gives the railroads the opportunity to acquire the cars and pass all the costs associated on to farmers through the revenue cap.

Option a) allows farmers to continue to receive the benefit of the cars at no cost

Option c) is better than option b).

Funding the FRCC has prevented option b) and has saved farmers millions of dollars. It would appear that the "loan" to the FRCC might have been money very well spent even if it is never paid back.

[cropduster]

Vader,shouldn`t they be selling wheat??Goofed up voter`s list(Ukraine?),full time lobbyist($100,000),85 million deficit.Seems like they can`t do any of the above very well either.Is or will it be public knowledge how much they `supported` the FRCC with?

[TOM4CWB]

Vader;

What exactly is the CWB going to do with the hopper cars it leases.

I understand the CWB needs about $15mil. to buy out the leases.

So, what is about to happen on this front?

[freenorth]

I don't claim to know the intracacies of the CWB but it would seem to me that if they would spend more time on marketing and hedging the dollar
and a whole lot less on self preservation, self justification , transportation,
and farmer advocacy then their costs would be lower and they just might
do a better job of marketing. After all isn't that what they are supposed to be doing.

They gave a $35000 initial loan and two additional traunches of $50,000
in forgiveable loans, if they don't get the cars as I understand it.

No I don't think this is an appropriate way for them to spend yours and my
money I could use a little bit more, how about you.

The maintenance costs are not verified. To think that a party with no experience, no track, and no locomotives, could add value to the system is a bit of a stretch. They would be another additional political interface which may allocate cars in a less than commercial manner hardly the
vision Honourable Justice Estey had.

The FRCC does not set the rate cap, whoever ends up with the cars
will have to replace them and farmers will pay for them in the future.
We must also be wary of whether or not the sale of something in the
neighborhood of $200million for $1 would be seen as a trade irritant
to our southern friends.

[Vader]

The details of the money given or loaned to the FRCC should be in both the CWB and the FRCC financial statements. Why would it be secret when the benefits are so obvious?

[Vader]

The government has delayed the selling of the hopper cars for many years now because of the efforts of the FRCC. This has saved farmers millions of dollars in depreciation costs, had the sale taken place in a commercial manner and the railroads acquired the hopper cars.

The expenditure/loan of 100,000 by the CWB would seem to be an extraordinarily wise move, saving farmers millions of dollars.

[Vader]

Ahh yes. A 200 million dollar trade irritant. Certainly our friends to the south are lily white and have never given their farmers a 200 million dollar subsidy nor are they guilty of actions that have caused us losses of such magnitude.

Wake up!! Refer to slide #1. (an inside joke)

[cropduster]

Enjoyed all of that Vader.Like an aquaintance of mine once said"If you`re explaining, you`re losing".Keep up the good work Vader!

[TOM4CWB]

Vader;

So what is the CWB exactly planning to do about the hopper cars they lease... in which the leases are about to expire?