The reason for the reduction
According to the law, which came into effect on April 1, railways would face “maximum penalties of $100,000 a day” for failing to handle 500,000 tonnes of grain each week for the next 90 days.
But when the law was extended in August, the fine was reduced to up to $100,000 “per violation,” which the government says means per week. The change was buried near the bottom of a lengthy “backgrounder” officials issued announcing the regulations, and went unnoticed by the grain industry, media and the Official Opposition.
“Lovely. The old switcheroo,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents Richardson International, Cargill and other major grain companies.
Mr. Sobkowich described the change as “disingenuous” and a “very small amount” for railways that generate billions of dollars in revenue a year. “We did not receive notice of the change, and if true, we are surprised and question the reason for the reduction,” said Mr. Sobkowich, adding grain companies sell wheat, canola and other grains weeks in advance, and need assurances the railways will provide adequate service.
The change came to light last week when Ottawa said it would fine CN for missing the minimum volumes for what the railway said was “several weeks.”
