The Govt of Canada Extends the Fair Rail for Grain Farmers Act
Following approval by both the House of Commons and the Senate, the Government of Canada announced on June 15, 2016 that it had postponed for one year the repeal of certain provisions of the Fair Rail for Grain Farmers Act. As reported in our previous bulletin, the Government of Canada had previously announced its intention to do so. The now formalized extension of the Fair Rail For Grain Farmers Act will continue to amend the Canada Transportation Act (the “CTA”) until August 1, 2017 to:
- allow Cabinet to require Canadian National Railway Company and Canadian Pacific Railway Company to move minimum quantities of certain grain commodities within specified time periods, subject to administrative monetary penalties for failure; and
- empower the Canadian Transportation Agency to
- require a federal railway company to compensate any person for expenses suffered as a result of that railway company’s failure to fulfill its service obligations to that person;
- extend the regulated interswitching limits beyond 30 kilometres for certain regions or goods (so far, the Agency has extended the regulated interswitching limits from 30 kilometres to 160 kilometres for all goods in the three prairie provinces); and
- make regulations specifying what constitutes “operational terms” for the purposes of service level arbitrations under the CTA.
The announcement indicates that the postponement is intended to allow participants in the freight rail supply chain to plan under predictable conditions while the Government of Canada considers recommendations made in the report (discussed here) in respect of the 2015 statutory review of the CTA.
by Ryan Gallagher and François Tougas
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2016
Related Publications
Ontario Court of Appeal Interprets the TSX’s Majority Voting Requirement, Considers the Oppression Remedy, and Clarifies Set-off Rights
Apr 16, 2021A recent decision of the Ontario Court of Appeal interprets the Toronto Stock Exchange (“TSX”) requirement that listed companies adopt a majority voting policy.
Commercial Landlord and Tenant Insolvencies: The Need to Know for Sub-tenants
Apr 13, 2021As the COVID-19 pandemic continues on, it is particularly important for sub-tenants and landlords to consider the ramifications of an insolvent head-tenant.
Upcoming Changes to Ontario’s Auto Insurance Regime
Apr 12, 2021The regulation of Ontario’s auto insurance market may undergo several key changes to enhance consumer
protection and foster greater competition and innovation.
Get updates delivered right to your inbox. You can unsubscribe at any time.