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House of Commons Debates VOLUME 147 Ï NUMBER 167 Ï 2nd SESSION Ï 41st PARLIAMENT OFFICIAL REPORT (HANSARD) Monday, February 2, 2015 Speaker: The Honourable Andrew Scheer CONTENTS (Table of Contents appears at back of this issue.) 10881 HOUSE OF COMMONS Monday, February 2, 2015 The House met at 11 a.m. our transportation system could not be relied upon. Shippers had to place car orders and had no idea when those orders would be fulfilled. Prayers Of all our Canadian exports, more than 50% are reliant upon rail, and more than 70% of those exports go right to the United States. As Canada grows, the country needs a rail system to evolve, matching PRIVATE MEMBERS' BUSINESS these trends. Ï (1105) In 2009, Canadian trade exports were valued at $367 billion. By [English] 2013, they went to $479 billion, 75% of which went to the United RAIL SERVICE States. When we look at 2013-14, it displayed a system that failed to Hon. Mark Eyking (Sydney—Victoria, Lib.) moved: adapt to the growth, especially in western Canada. That, in the opinion of the House, the government should take steps to provide an increased level of rail service throughout Canada by: (a) recognizing that an increase The 2012-13 grain harvest, considered a once-in-a-lifetime crop, in rail service and capacity is essential to the livelihood of Canadian agriculture; (b) was topped again in the following year. The farmers are getting recognizing that the ongoing review of the Canada Transportation Act provides an better out west; they are getting better varieties and growing more opportunity to rebalance the system and improve capacity and service; (c) making sure that all sections of the industry convene, with their own operational ideas, to crops, and the world needs those crops. Canadian exports of oil by increase effectiveness and efficiency of our transportation system...; (d) recognizing rail are up over 160,000 barrels per day, from 50,000 barrels in 2012. that changes to legislation are needed to address the imbalance of power along the logistics chain; and (e) making sure that all stakeholders work together to build a world class transportation system, including effective legislation and regulations. As Canada's economy continues to grow, our transportation system needs not only to grow alongside it, but to improve as well. A He said, Mr. Speaker, on the domestic front, last winter we were system as complicated as Canada's transportation system needs to be faced with a severe crisis within our agriculture sector to effectively built upon the spirit of co-operation. The number of stakeholders and recognize the interests of producers and the struggle to get their the demand on the system is going to continue to grow, which is record crop to market. Harvests across the prairie provinces, the good. It is good for the people out west; it is good for all of Canada, world's top canola producer and second-largest exporter of wheat, and it is good for the people who need our products around the jumped 14%, to a record 90 million metric tonnes, as reported by the world. government. To put it simply, the system failed farmers last year, and it failed The Canadian Wheat Board had a variety of functions in the them badly. There is a responsibility throughout the logistic chain— system. Some of them were set out in legislation, such as the single- the railroads, the grain companies—and then we had the cold desk seller function. Some of its functions simply developed by way weather to boot. of the evolution of the grain system in western Canada. It became a safeguard of the system, helping to direct traffic and providing some However, if the system failed, then we must asked ourselves, overall coordination. “Who designed the system? Who put it in place? Who set it up for failure? Who imposed $8 billion in costs and losses to prairie When the Conservatives came in and made the decision to farmers?” The answer to that question is the current Conservative eliminate the single desk, what was going to replace that system? It government. This disastrous system, the one that has failed so badly, was their policy decision to make, as a government. is the one that was designed and implemented over the past three years of this current government. Ï (1110) Now, the current Canada Transportation Act review could not be more timely. The winter of 2013-14 saw a transportation crisis that That ship has sailed; it is over, and there was nothing put in its impeded the growth and credibility of our export economy. Real place to help that coordination and to get things going. We saw ships hardship was experienced by farmers due to the failures of the waiting in Vancouver harbour last year that had to turn around and system. For both the producers and the consumers of Canadian grain, go to other countries to buy grain. 10882 COMMONS DEBATES February 2, 2015 Private Members' Business However, Liberals do not believe that they thoroughly considered interactions with the railroads. In order to effectively address issues the collateral damage here, and some of the collateral damage was that occur in the fulfilment of service level agreements, the the total elimination of any coordinating function, oversight complaint mechanism must allow not only for shippers to seek function, and an ability to try to use limited assets in the most arbitration efficiently and fairly, but also for each party to be on cost-effective, business-like fashion. That is what is missing in this equal footing. That is very important. Everybody has to be on equal system now. It is not an issue at the moment of a single-selling desk. footing to make this system work because everybody is accountable. That is not what we are here to talk about. It is about an issue of absolute chaos in an uncoordinated system and a lack of synchronization. That is what is happening, with nothing to fill it. During the passage of Bill C-52, the Coalition of Rail Shippers made several recommendations, which we in the Liberal Party Rail transportation is a very complex system. One has to get the supported. However, none of those resolutions were passed back in grain from the right delivery point to the right terminal on to the right 2012. boat to the right customer in an appropriate amount of time. That did not happen last year. It happened late, and as I stated, there were Ï (1115) billions of dollars lost by farmers out west. A very intricate and complex number of parts have to work together to make this happen. What we have seen over the past year is the Conservatives' inability Many prairie groups agreed that the legislation needed to be to bring proper coordination to the system. They have not made the amended to make it easier to hit the railroad companies with fines best use of our limited assets in the most cost-effective way so that over transportation bottlenecks. If it had stuck then, the railroads we do not have a colossal mix-up. We need a smoothly functioning might have complied with it last year. system that will get the most money for farmers because their product is delivered at the right place and at the right time. This eventually brought forward Bill C-30, which was the bill we In November 2013, just when the farmers were finishing their dealt with just last year, an act to amend the Canada Grain Act and grain harvest—and they were very optimistic, as it was a great the Canada Transportation Act and to provide for other measures. harvest and they had customers—I had the opportunity to take an That was introduced by the government in March of 2013. The agriculture outreach tour throughout western Canada to meet with measures being imposed will expire in another year's time. farmers and identify areas that are important in my role as agriculture and agri-food critic. After visiting various farmers in Manitoba, Saskatchewan, and Alberta, even early in the fall months it was As I said, there is no long-term solution for the farmers. The evident that our grain handling system in Canada was not providing government is putting Band-Aids on as we go along. There is no the capability to meet industry demands. long-term solution that will keep the same situation from happening again and again. The crops are going to continue to do well, they are Along with the member from Winnipeg, we witnessed first-hand going to get bigger, and there is no solution. the mounds of grain that were piled right to the rafters. The bins were full at the McRae's farm, at St. Andrews, in Manitoba. He was optimistic at that time, but throughout the winter things changed for Many agronomists and public servants at the agriculture him. The situation became worse. department have said that these harvests are only going to get bigger and better, which is great, but we have to get those crops to Initially the minister suggested cash advance payments—I wonder the Asian markets especially and to the United States. The bill does what good that is if their crop is not moving—and a working group not attempt to find a long-term solution for farmers. to look into the disaster. As the months were going by and they were losing more money, it was too little and too late. Ships remained idle in Vancouver, resulting in millions of dollars in demurrage charges The fact that the measures will expire demonstrates yet again that and on-farm operating debts being unpaid.

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