The Federal Government is taking action to help Canadian grain producers who have been struggling to move their crop from elevator to port.
Earlier today Transportation Minister Lisa Raittand Agriculture Minister Gerry Ritz announced that rail companies will be required to move a combined minimum of one million metric tonnes of grain per week for the next four weeks.
Peace River MP Chris Warkentin says it’s unfortunate the backlog had to get to a point where the government was forced to step in.
“With the requirement now that the rail companies will have to double their capacity, I think we’re going to see immediate reaction, we’re going to see that grain will start moving at twice the capacity that is has been. Grain has been moving of the last number of months, but it’s been much too slow.”
Warkentin says if at the end of the four week period the movement of grain has been inadequate, the orders will be extended.
If railways fail to comply with the order, they could face non-compliance penalties of up to $100,000 per day.