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GRAIN CAR ALLOCATION SYSTEM STUDY RELEASED

Released on December 20, 1995

Andy Renaud, minister responsible for the Saskatchewan Grain Car
Corporation (SGCC) today released a study entitled Modernizing the
Grain Car Allocation System in Canada.

The 1995 federal budget included a provision to review grain car
ownership and allocation before the end of 1995. In anticipation of
the changes, the SGCC commissioned Andrew Elliot and R.L. Banks and
Associates to produce a report on modernizing the grain car allocation
system in Canada.

"The report concluded that putting control of the hopper car fleet into
producers' hands will result in improved market power," Renaud said.
"Producer control will permit some of the benefits of improved car
usage to flow to producers as opposed to carriers or shippers.

"These findings fit well with our government's overall belief that
changes to the grain car allocation system must improve producers net
income, ensure market fairness and support continuing efficiencies
within the system."

Saskatchewan will be sending copies of the report to the federal
ministers of transportation and agriculture. The report will also be
distributed to farm organizations throughout the province for comment
and consideration.

"We will be asking the federal government to consider the findings of
this report carefully when making its decision on grain car ownership.
We hope the federal government will ensure that adequate time is given
to all groups to submit proposals and ideas on this issue.

"Any federal decision must meet both the immediate and long-term needs
of Saskatchewan producers," Renaud said.

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For more information, contact:

Bernie Churko
Assistant Deputy Minister
Saskatchewan Highways and Transportation
Regina
Phone: (306) 787-4866


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