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End Kickstart Subsidy To Elevators

Congratulations to the Producer Car Shippers organization (www.pcsofcan.ca)for exposing the revenue cap formula as nothing more than a money grab from farmers to subsidize the concrete elevators that have been built during the past decade. Ten years ago, the grain companies argued that they needed a kickstart subsidy to ensure the success of their elevator building program. Whether you agree or disagree with a kickstart subsidy, I think everyone can agree that a 10-year subsidy is long enough. If they still need this subsidy in order for their new elevators to be viable, then there is something wrong with their business plan.

This subsidy problem can be solved by fixing the revenue cap formula. The solution is very simple. Do not allow the railways to use multicar incentives as a deductible expense under the revenue cap.

I wonder whether our federal government will listen to farmers or railways on this issue? Federal Conservatives have historically viewed subsidies as bad policy, so maybe there is hope that farmers can get this subsidy issue resolved.

George E. Hickie Waldron, Sask.

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