Hill Calls for Grain Transportation Mediation

September 19, 2000

OTTAWA-Today in the House of Commons Official Opposition Transportation Critic Jay Hill posed the following questions to Transport Minister David Collenette, however, Minister Ralph Goodale responded on his behalf.

Mr. Jay Hill (Prince George–Peace River, Canadian Alliance): Mr. Speaker, farmers are in the middle of harvest and desperately need cash flow. In order to maximize grain farmers' returns Canada must market and export as much grain as possible during this period. Disagreements between the Canadian Wheat Board, the grain companies and the railways are impeding the movement of grain at farmers' expense. The grain industry itself has asked the government for a mediator to help resolve these disagreements and disputes.

Will the Transport Minister today appoint a mediator to assist in this issue?

Hon. Ralph E. Goodale (Minister of Natural Resources and Minister responsible for the Canadian Wheat Board, Lib.): Mr. Speaker, at the end of August the grain companies indicated that in their view they thought the discussions with the Canadian Wheat Board had arrived at an impasse. Although they did not provide any detail at that time of what that impasse might consist of, the government immediately asked the grain companies to provide more detail. That detail arrived during the course of last week. Their position is being carefully examined at the present time and we intend to respond in an appropriate manner very shortly.

Mr. Jay Hill (Prince George–Peace River, Canadian Alliance): Mr. Speaker, they cannot respond any too fast for farmers' needs. These disagreements could lead to a complete system failure just like in 1993-94 and 1996-97. Those disputes damaged Canada's reputation as a reliable exporter and cost millions in demurrage and contract penalties, all at farmers' expense.

The Estey and Kreoger reports recommended removing the wheat board from negotiations between the railways and the grain companies, yet this minister chose to ignore those recommendations.

Will the Minister appoint a mediator to resolve this mess that he is partially responsible for?

Hon. Ralph E. Goodale (Minister of Natural Resources and Minister responsible for the Canadian Wheat Board, Lib.): Mr. Speaker, as I just indicated the Minister of Transport, the Minister of Agriculture and Agri-Food and myself will be responding to the grain companies very shortly with an appropriate considered reply.

Let me simply say this to all of the players in the grain handling and transportation system. Neither farmers nor this government will take lightly any behaviour that puts an excess burden upon farmers in these difficult times.