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.

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