Report to Council (Ir - Standing Committee of Council v) On Finance and Priorities February 26, 1987 RECOMMENDATION 5. Western Grain Transportation Act (Proposed Amendments) An April 1986 review of the Western Grain Transportation Act (WGTA) has recommended to the Minister of Transport that the Gefinition of "export", which requires export grains receiving a freight rate subsidy to be shipped through Canadian ports, be deleted from the legislation. As a result, substantial freight subsidies (amounting to 80% of the total rail costs) would apply t9 all export grain, whether shipped through Canadian or U.S. ports. Interests pressing for this amendment have cited concerns regarding capacity and costs of the Port of Vancouver; however, it has been demonstrated the Port of Vancouver can compete effectively on the basis of costs and service with the Ports of Seattle, Tacoma and Portland, and offers Services to all existing and potential markets. The Vancouver Port Community has strong concerns that the Proposed amendments to the WGTA would lead to the diversion of significant volumes of grains to U.S. ports, and in a City Manager's report dated February 9, 1987 (on file), the Manager of Economic Development outlines the probable, serious negative impact on the Port of Vancouver, as summarized below: - The specialty grain traffie currently handled by the Port of Vancouver would be lost, putting at risk the Port's entire container trade for reasons outlined the report, with the potential loss of thousands of jobs in the regional economy; - The diversion of grain traffic to U.S. ports would act to support the Port of Vancouver's major competitors, notably Seattle which already possesses a number of advantages; ” ~ As @ point of principle, it is unreasonable to expect the Canadian taxpayer to pay freight subsidies which, in wifect, export revenues and jobs to competing U.S. ports. A number of port and port-related agencies and organizations in Vancouver have submitted well researched briefs epposing this proposed amendment to the WGTA, and the Manager of Economic Development and City Manager recommend Council do likewise, and also seek support of the GVRD in this regard. Representatives of the Vancouver Port Corporation, the International Longshoremen's and Warehousemen's Union, and the Vancouver Board of Trade (filed Pebruary 26, 1987 brief urging approval of the foregoing recommendations) briefly indicated satisfaction with the foregoing initiatives. The Chairman noted other delegations were present, and enquired whether all were in Support of the City's initiatives, receiving no indication to the contrary. 48