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FREIGHT RATE INCREASE COULD COST SASKATCHEWAN FARMERS $25 MILLION

Released on April 26, 2000

The Canadian Transportation Agency (CTA) ruling to increase freight rates by a

maximum of 4.5 per cent could cost Saskatchewan producers as much as $25

million annually.



The ruling was handed down earlier today. It will impact Canadian Wheat Board

grains, as well as canola, oil seeds and mustards. The new rates will take

effect Aug. 1, 2000.



For a typical movement of 1531-1570 kilometres, the maximum rate for a tonne of

grain will be $33.98, which represents an increase of $1.45 over the current

rate.



"It's very unfair that this increase is happening at a time when the railway

companies are enjoying huge profits," Highways and Transportation Minister

Maynard Sonntag said. "CN announced yesterday a 41 per cent profit increase in

its first quarter."



Sonntag added the province is disappointed that the rate increase was handed

down before the federal government completed its grain transportation review,

which includes a five-year review of the Canada Transportation Act to be

conducted this year.



Saskatchewan's position has long been that any changes to grain handling and

transportation must benefit producers first. Rail line abandonment and

elevator closures have meant producers are transporting their products longer

distances and incurring increased shipping costs.



"I will be contacting the Federal Minister of Transport to repeat our

concerns," Sonntag said. "We're urging the federal government to act quickly on

the new legislation and carry out its promise to roll back freight rates and

set a framework for improvements to the entire grain handling and

transportation system."



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For more information, contact:



Lorri Thacyk

Saskatchewan Highways and Transportation

Regina

Phone: (306) 787-2701

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