The Senate
Motion to Adopt a Resolution Pertaining to the Fair Rail for Grain Farmers Act Adopted
June 8, 2016
The Honorable Senator Donald Neil Plett:
Leader, you will win this bet. I will be shorter than that.
I would like to speak for a moment in support of this motion. I was proud to have sponsored the Fair Rail for Grain Farmers Act in the Senate to address the major backlog in grain transportation.
When we put this legislation in place, the value of grain currently sitting in bins was estimated at between $14.5 billion and $20 billion. The implications of the backlog have been reduced cash flow and lost revenue for farmers and shippers, cash prices that are lower than the world standard, increased shortage costs for farmers and grain companies, as well as stiff penalties for demurrage and failure to consummate contracts. There is a risk of crop contamination and an overall risk of damage to Canada's global reputation as a reliable grain supplier.
Since the Marketing Freedom for Grain Farmers Act, or the Wheat Board bill, which I also had the pleasure of sponsoring, grain production has increased substantially, and this trend has continued every year since. With world demand growing, we need to ensure we are moving grain faster, with predictable and reliable rail service.
The minister has been permitted the power to order a mandatory minimum volume requirement for grain shipments. It is imperative that this continues for the coming year so that our grain farmers can be assured that the rest of the supply chain is doing its part to move the product efficiently to waiting markets around the world.
Colleagues, I urge you to support this motion.
Hon. Peter Harder (Government Representative in the Senate), pursuant to notice of June 7, 2016, moved:
That the Senate adopt the following resolution, established by Order of the Governor General in Council on April 19, 2016, for the purposes of subsection 15(2) of the Fair Rail for Grain Farmers Act:
"That, pursuant to subsection 15(1) of the Fair Rail for Grain Farmers Act, the coming into force of subsections 5.1(2), 6(2), 7(2), 8(2), 9(2), 10(2), 11(2) and 12(2) of that Act on August 1, 2016 be postponed for a period of one year."