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Legislation tabled to end grain bottleneck

2014-03-26 17:11:52


The federal government has tabled legislation aimed at increasing the movement of grain that has been left sitting in bins across the Prairies due to a transportation bottleneck.

The legislation proposes the Canadian Grain Commission regulate how much a grain company will pay to a farmer if the company doesn't meet delivery dates set out in a contract.

It also aims 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 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 a minimum amount of grain or face a penalty of up to $100,000 a day.

The legislation would not increase the penalty or direct fines to farmers instead of federal coffers, which is what Saskatchewan and Alberta have called for.


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