Senators are reviewing the Transportation Modernization Act
By Diego Flammini
News Reporter
Farms.com
Western Canadian grain producers are encouraged that the Transportation Modernization Act (Bill C-49) has passed its third reading in the House of Commons and is now being reviewed by the Senate.
The legislation includes reciprocal penalties, meaning multiple parties can face penalties if agreements are breached.
And that’s a big improvement from past regulations, according to Kevin Auch, president of the Alberta Wheat Commission (AWC).
“There weren’t any effective reciprocal penalties before,” he told Farms.com today. “The way it used to be, if shippers were late loading a grain car, the railroad could hold them accountable and charge penalties. But the reverse wasn’t true. If a grain company was supposed to pick up grain car (by a certain date), they could pick it up two weeks later and there wouldn’t be any penalties.
Kevin Auch
“(Previous regulations) showed inefficiencies in the system and made our grain late (for export).”
Bill C-49 incorporates a number of grain transportation provisions, including requiring “certain railway companies to provide to the Minister (of Transportation) and the public information respecting the movement of grain.”
And these types of transparencies can only help the ag industry, according to Fred Greig, chair of the Manitoba Wheat and Barley Growers Association.
“Anything that puts responsibility and accountability into a system is always good for producers,” he told Farms.com today. “Farmers live and die by the movement of (their products).”
Senators read Bill C-49 yesterday. The legislation needs to pass two more readings and receive approval from the Governor-General.