Despite a cabinet order threatening the railways with $100,000 a day fines and legislation with an impressive-sounding name like Fair Rail for Grain Farmers Act, nobody seems very happy or impressed with the federal government's plan to get the grain moving again. Naturally, opposition parties and some farm groups are panning the new legislation, calling it too little, too late. Not surprisingly, the railways are "extremely disappointed'' in the new legislation, saying it's "not only ineffective, but grossly unfair."
But the usually compliant Sask. Party government is also joining the chorus of naysayers, calling it "deficient" and "disappointing." Even a Conservative MP is criticizing Bill C-30, saying it doesn't go far enough to get rid of the backlog of grain, which is estimated at 26 to 30 million tonnes. At $275 per tonne, the backlog is costing producers $7.2 billion to $8.3 billion in lost sales, according to the government's own figures. What is happening to the Tories' rock-ribbed support in rural Saskatchewan? Could it be that the grain transportation crisis is the last straw for Prairie producers, who have dutifully voted Conservative in election after election? Are we witnessing one of the Conservative government's core constituencies - rural and farm folk - jumping off the Harper bandwagon? Well, it's early days yet, but something serious is brewing in farm country and it doesn't look good for the Harper Tories.
First of all, there's general agreement that Bill C-30, which was introduced in Parliament on Wednesday, is not up to the job of getting rid of the backlog of grain anytime soon. Most observers agree that will take at minimum six months, but more likely the better part of a year, to eliminate the backlog.
That's assuming the railways can get their grain shipments up to 11,000 railcars or one million tonnes per week by the first week in April - a tall order at the best of times, and these assuredly are not the best of times.
The combination of abnormally cold weather - the coldest in over 30 years - and an abnormally large crop - at close to 80 million tonnes, or 37 per cent above the five-year average - has made moving last year's crop especially challenging. "Canada's grain-handling system is just not built to handle this record amount of grain,'' says CP CEO Hunter Harrison. "While it is easy to blame the railways for 'dropping the ball,' it ignores the facts,'' Harrison said, referring to Agriculture Minister Gerry Ritz's flip comment the day the government ordered the railways to double their grain shipments.
Having said that, the government's response has been wholly inadequate from the get-go. At first, Ritz seemed to deny that it was in his power to get the grain moving. Back in February, Ritz was looking for market solutions to the grain-handling mess.
"I'm loath to resort to regulation - at end of the day, it usually adds red tape and increases time delays - and I would rather the logistics are taken care of by the key players themselves."
He's singing a different tune now, but his 'get tough with the railways' line sounds a little off key, like his heart isn't in it. Farmers are pretty good at telling when they're being fed a line, and they're not buying Ritz's tough talk.
Certainly, Saskatchewan Agriculture Minister Lyle Stewart wasn't pulling his punches, expressing disappointment the federal legislation didn't go as far as the province had recommended, namely increasing fines to $250,000 per day and increasing shipments to 13,000 cars per week.
But when Cypress Hills-Grasslands MP David Anderson, former parliamentary secretary to the minister of the Canadian Wheat Board (Ritz), starts criticizing the legislation, you know there's trouble down on the farm. Anderson, one of the Harper government's biggest boosters of marketing freedom (the elimination the CWB's single desk), is now saying that Bill C-30 doesn't do enough to increase the supply of railcars, especially by shortlines.
When parliamentary secretaries start deviating from the party line, in the Harper government especially, you know that the end time is near.
Next thing you know, dogs will be laying down with cats, and farmers will be voting for anybody but the Tory candidate in the 2015 federal election.
bjohnstone@leaderpost.com
But the usually compliant Sask. Party government is also joining the chorus of naysayers, calling it "deficient" and "disappointing." Even a Conservative MP is criticizing Bill C-30, saying it doesn't go far enough to get rid of the backlog of grain, which is estimated at 26 to 30 million tonnes. At $275 per tonne, the backlog is costing producers $7.2 billion to $8.3 billion in lost sales, according to the government's own figures. What is happening to the Tories' rock-ribbed support in rural Saskatchewan? Could it be that the grain transportation crisis is the last straw for Prairie producers, who have dutifully voted Conservative in election after election? Are we witnessing one of the Conservative government's core constituencies - rural and farm folk - jumping off the Harper bandwagon? Well, it's early days yet, but something serious is brewing in farm country and it doesn't look good for the Harper Tories.
First of all, there's general agreement that Bill C-30, which was introduced in Parliament on Wednesday, is not up to the job of getting rid of the backlog of grain anytime soon. Most observers agree that will take at minimum six months, but more likely the better part of a year, to eliminate the backlog.
That's assuming the railways can get their grain shipments up to 11,000 railcars or one million tonnes per week by the first week in April - a tall order at the best of times, and these assuredly are not the best of times.
The combination of abnormally cold weather - the coldest in over 30 years - and an abnormally large crop - at close to 80 million tonnes, or 37 per cent above the five-year average - has made moving last year's crop especially challenging. "Canada's grain-handling system is just not built to handle this record amount of grain,'' says CP CEO Hunter Harrison. "While it is easy to blame the railways for 'dropping the ball,' it ignores the facts,'' Harrison said, referring to Agriculture Minister Gerry Ritz's flip comment the day the government ordered the railways to double their grain shipments.
Having said that, the government's response has been wholly inadequate from the get-go. At first, Ritz seemed to deny that it was in his power to get the grain moving. Back in February, Ritz was looking for market solutions to the grain-handling mess.
"I'm loath to resort to regulation - at end of the day, it usually adds red tape and increases time delays - and I would rather the logistics are taken care of by the key players themselves."
He's singing a different tune now, but his 'get tough with the railways' line sounds a little off key, like his heart isn't in it. Farmers are pretty good at telling when they're being fed a line, and they're not buying Ritz's tough talk.
Certainly, Saskatchewan Agriculture Minister Lyle Stewart wasn't pulling his punches, expressing disappointment the federal legislation didn't go as far as the province had recommended, namely increasing fines to $250,000 per day and increasing shipments to 13,000 cars per week.
But when Cypress Hills-Grasslands MP David Anderson, former parliamentary secretary to the minister of the Canadian Wheat Board (Ritz), starts criticizing the legislation, you know there's trouble down on the farm. Anderson, one of the Harper government's biggest boosters of marketing freedom (the elimination the CWB's single desk), is now saying that Bill C-30 doesn't do enough to increase the supply of railcars, especially by shortlines.
When parliamentary secretaries start deviating from the party line, in the Harper government especially, you know that the end time is near.
Next thing you know, dogs will be laying down with cats, and farmers will be voting for anybody but the Tory candidate in the 2015 federal election.
bjohnstone@leaderpost.com
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