Saskatchewan asks for tougher law to clear grain backlog

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The legislation would amend the Canada Grain Act and the Canada Transportation Act to extend what are called inter-switching limits from 30 kilometres to 160 kilometres in Alberta, Manitoba and Saskatchewan. Most grain elevators on the Prairies are only served by one railway and the federal government says expanding inter-switching would allow more service by more rail companies.

Another change would enshrine a previous government order for Canadian National and Canadian Pacific railways to move 11,000 grain cars a week or face a penalty of up to $100,000 a day.

Saskatchewan says that should be bumped up to 13,000 cars weekly and the penalty should be increased to $250,000 a day.

Stewart also wants the committee to change a clause that would see the legislation end in August 2016.

“Now granted, it can be renewed at the whim of the government of the day, but that does not in our view provide the security for our industries and our shippers that’s required,” he said.

“Two years isn’t much of a future.”

Saskatchewan also wants to see service level agreements between shippers and railways, including reciprocal penalties and expedited arbitration.

It’s not the first time Saskatchewan has voiced concern about the legislation. The province made requests before the legislation was introduced and Stewart met with federal Agriculture Minister Gerry Ritz after the law was proposed.

Stewart said the province isn’t going to stop pushing for change.

“Not only the grain industry in Western Canada or in Saskatchewan, but our entire economy sort of rolls on rail wheels here, and we are constrained if we can’t get better service across the board, that’s grain, potash, oil, manufactured goods, forest products and so on,” said Stewart.

The federal New Democrats proposed amendments to the legislation Friday that match much of what the province is demanding.

“We’ve heard from the Prairie provinces and from stakeholders across the supply chain that this bill doesn’t go far enough in addressing the grain backlog and providing fair rail service,” said NDP agriculture critic Malcolm Allen. “We need a bill that gets the job done for farmers, and that’s what our amendments set out to do.”

The NDP said the committee is to begin voting on the amendments Monday afternoon.