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SASKATCHEWAN WELCOMES THE CWB ON ITS SETTLEMENT WITH CN

Released on April 20, 1998

Agriculture and Food Minister Eric Upshall and Highways and

Transportation Minister Judy Bradley today welcomed the fact that the

Canadian Wheat Board (CWB) has successfully achieved a settlement on

behalf of Prairie farmers with Canadian National Railways (CN).



Both ministers urged Canadian Pacific to establish a quick settlement

with the CWB to compensate prairie farmers for their lost income.



The ministers noted that while the CWB and CN have not released terms

of the settlement, they welcomed CWB's assurance that the deal will

benefit Prairie farmers.



Upshall said the Government of Saskatchewan supported CWB's actions

from the outset in order to promote effective rail service for

Saskatchewan farmers.



Bradley said more than a year ago Saskatchewan called on the federal

government to compensate prairie producers for their losses caused by

the poor performance of the grain handling and transportation system.



"The CWB took the initiative to protect the interests of Prairie grain

farmers through the Canadian Transportation Agency (CTA) process,"

Upshall said. "Farmers had suffered a loss due to poor rail service

during 1996-97. By taking action they have made the railways more

accountable."



"The Government of Saskatchewan along with several farm groups

and many individual farmers intervened on the side of the CWB to

ensure the CTA was aware of the impact of the poor services for

farmers," Bradley said.



Upshall said we now need to push for a long-term solution so we

don't face similar problems in the future.



"We will continue to work with Saskatchewan farmers and farm

organizations to propose solutions to the Estey Commission during

the phase two process later this year and make presentations

directly to the federal government to ensure farmers have

adequate low cost services in the future," Bradley said.



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For more information, contact:



Hal Cushon Bernie Churko

Policy and Program Logistics, Planning and

Development Compliance

Agriculture and Food Highways and Transportation

Regina Regina

Phone: (306)787-5961 Phone: (306)787-4866

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