Point taken, Mr. Speaker.
As the hon. members across the floor well know, highways are mostly the exclusive jurisdiction of the provinces. The many funding agreements we have signed with the provinces and territories however are proof of our government's commitment to work with other levels of government to preserve and enhance Canada's national highway system.
On the subject of grain transportation which the hon. member brought forward but did not speak to, our government's efforts to ensure the provision of a well maintained road system in this country mirror our work to modernize the rail sector. This leads me to the subject of grain transportation.
The motion before us suggests that the federal government is responsible somehow for the inefficiencies in the grain transportation system. Nothing could be further from the truth. Since coming to office, our government has taken bold steps to modernize rail transportation, the principal means by which grain is shipped in this country.
The Canada Transportation Act for example has given Canadian railways the flexibility to compete by reducing costs and those excessive regulations. The new act has cut the number of railway actions or decisions requiring government approval to about 40 from a previous high of 200. Cutting excess regulation will benefit not only the railways but also its customers, which include the grain shippers, through lower rail costs. The new act also shifts the focus from rail line abandonment toward the development of a healthy shortline industry.
Canadian National is now a private company with the tools it needs to compete. Putting CN into the private sector was an important step in our government's plan for modernizing the rail transportation system. The privatization has placed CN and CP rail systems on a level playing field. It has also subjected CN to the disciplines of the marketplace.
Not only will this move ensure the survival of the railway, but the gross proceeds from the sale of the crown's 80 million shares returned to the Canadian taxpayer in the amount of $2 billion. The enthusiastic response to the share offering by investors through Canada, the U.S. and internationally was outstanding. In fact it demonstrates CN's position as a strong player in the North American rail industry.
Finally, let us talk about the issue of transportation subsidies. As even a casual observer will notice, our government has dramatically cut subsidies in the transport sector. We have done so because we believe that those who use the transportation services should pay a greater share of the cost of providing those services.
VIA Rail for example will see its annual subsidy reduced to $170 million for the fiscal year 1997-98.