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REDUCE FREIGHT RATES

Released on November 10, 1999

The federal government could put $100 million in farmers pockets now, if it

reduces freight rates by $5 per tonne.



"I'd like to see $100 million dollars come back to farmers from the railways

urgently," Deputy Premier and Agriculture and Food Minister Dwain Lingenfelter

said at the Saskatchewan Association of Rural Municipalities convention in

Regina today. "The decision to reduce freight rates would not cost the federal

treasury one cent and would not cause any trade problems."



In July 1999, the Canadian Transportation Agency (CTA) released a study showing

that the railways are overcharging farmers by about $5 per tonne because they

have not shared all of their productivity gains with producers.



Following the release of the study, Saskatchewan called on the federal

government to immediately reduced freight rates beginning August 1, 1999.

However, the federal government has not taken any action on reducing excessive

freight rates charged by the railways.



Lingenfelter said the federal government's response to the province's request

will determine whether they support farmers in a time of need or are more

concerned about ensuring the railways continue to earn windfall profits at the

expense of western grain farmers.



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For more information, contact:



Hal Cushon, Director

Policy and Program Development

Saskatchewan Agriculture and Food

Regina

Phone: (306) 787-5961

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