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14 FEBRUARY 21, 2013 | WWW.PRODUCER.COM | THE WESTERN PRODUCERNEWSSHIPPING | LEGISLATIONHearings start on rail service billImproving service | Opposition MPs argue bill should be harder on railwaysBY BARRY WILSONOTTAWA BUREAUFederal transport minister DenisLebel launched Parliament Hillhearings on rail service legislationlast week by arguing the bill is a milestonefor the shipping industry andshould receive quick approval.Opposition MPs are insistingthat shippers who want to speak atthe committee should have a fullhearing, but transport committeechair Larry Miller said he hopeswitness hearings can be wrappedup by March 7 after just two weeksof process.“Things can come up, but I hope wecan finish up when we meet March 7,”he said.If that schedule works, Bill C-52could be back in the House of Commonsfor final debate by late Marchand through the Senate and into lawby summer.Opposition MPs, who say theyagree with the principle of the legislationand agreed unanimously tosend it to committee, may try toextend hearing time, creating potentialpolitical partisan struggles at thecommittee.Lebel defended Bill C-52 as a way toput shippers in “the driver’s seat” inrelations with railways, all the whileinsisting that it is balanced legislationthat does not take sides.“This legislation will help ensurethat railways and shippers worktogether to accomplish a shared goalto improve rail freight service inCanada,” Lebel told the House ofCommons transport committee Feb.12.Opposition MPs argued that the billis not tough enough on the railways.Several Conservative MPs suggestedit is too one-sided in favour ofshippers.The transport minister said theproposed regime of arbitrated serviceagreements and fines of up to$100,000 if railways do not live up tothe agreements is aimed at convincingrailways that working with shippersis the best business plan.“The intent is to create the conditionsthat will allow for successfulcommercial negotiations that(would) normally be possible in afree market,” he said.“Ideally, the legislation will neverhave to be used.”However, it will be there as a backstopif shippers find carriers unreasonable,he added.“The shipper will be in the driver’sseat,” said Lebel.“He gets to trigger arbitration, identifythe type of service desired andframe the issues to be addressed infront of the arbitrator.”Shippers, including agriculturalproducers and companies, will beable to appeal to the CanadianTransportation Agency if they cannotreach a satisfactory deal with arailway. The arbitration process willbe no more than 45 days with the rulingbinding.Transport Canada officials toldMPs that shippers would have operationalobligations to load cars whenthey are delivered, but there wouldbe no penalties for failure to comply.Railways could take them to courtfor damages.It led Toronto MP Joe Daniel to suggestthe bill is one-sided.“The way the bill is actually put forward,it almost seems to be favouringthe shippers rather than trying tocome up with an equitable solution,”he said.The railways will make the samepoint when they appear as witnesses.They insist legislative intervention isunnecessary.Lebel insisted the bill is balanced,correcting a current market powerimbalance.Officials said the terms of the billwill apply to federally regulatedshort-line railways.As well, any penalties for noncomplianceby the carriers will go tothe government rather than the shippers.Lebel said the potential for fineswould encourage railways to do theright thing and the fact that therewould be no revenue reward for shipperswould deter them from wantingto use the system frivolously.Opposition MPs complained thelegislation would not apply to shipperswho have already signed a serviceagreement with a carrier, even ifits terms are worse than are possibleunder Bill C-52.Lebel said most of the privateagreements end in a year or two andthen shippers could move to legislativeremedies if need be.Meet Ken DuttonNew legislation would see fines up to $100,000 if railways do not liveup to agreements. | FILE PHOTOStarted farming: 1974Crop rotation: Chemfallow, durum, spring wheat, barleyFirst vehicle: ‘64 Chevy Half-TonLoves: Family, Saskatchewan RoughridersHates: Kochia, Edmonton EskimosWill never sell: His 4020 John Deere tractor, a gift from dadMost memorable farming moment: “Last year, we filled all the bins.”PrecisionPac ® blends: DB-858, DB-8454JUST LIKE KEN, EVERY GROWER IS UNIQUE.THAT’S WHY WE HAVE PRECISIONPAC ® .As a matter of fact, so is each and every farm in Western Canada, in terms of its field sizes, croprotation and weed spectrum. It’s good to know there’s a weed control solution that’s as individualas you and your farm. DuPont PrecisionPac® herbicides are 12 customized blends of powerfulDuPont crop protection, geared to your weed targets and calibrated down to the precise acre.You mix, you go, no mistakes, no waste. How’re we doing so far, Ken?For custom herbicides as unique as your fields, visit precisionpac.dupont.ca or call1-800-667-3925 to find a certified PrecisionPac® herbicide retailer near you.As with all crop protection products, read and follow label instructions carefully.The DuPont Oval Logo, DuPont, The miracles of science and PrecisionPac ® are registered trademarks or trademarks of E. I. du Pont de Nemours and Company.E. I. du Pont Canada Company is a licensee. All other products are trademarks of their respective companies. Member of CropLife Canada.© Copyright 2013 E. I. du Pont Canada Company. All rights reserved.DuPont PrecisionPac ®