Mr. Speaker, the House will know that on September 21, CP Rail System tabled an unsolicited bid of $1.4 billion for the CN North America eastern rail assets.
I am announcing today that the Government has rejected CP's offer and is not prepared to entertain any further the sale of CN Rail assets.
In reaching our conclusions, we reviewed the business and policy cases beyond the financial implications of the deal. Canadian Pacific's bid would have had a substantial impact on employment, the rail network and the cost of rail service for eastern shippers. The government was also concerned about the impact that the transaction would have had on CN's remaining western operations.
We must address the fundamental problems facing the rail industry to ensure that the sector is viable, competitive and continues to meet the needs of Canadian shippers. A series of meetings have been held with shippers and other stakeholders in all regions of the country. This phase of the consultation process will wrap up with a national shippers' meeting in Ottawa tomorrow.
I have also asked a committee of members of Parliament headed by the member for Kenora-Rainy River to discuss with Canadians the feasibility of commercializing Canadian National. I look forward to the recommendations that the member and his colleagues will bring forward, particularly with regard to the possibility of employee participation in any commercialization of Canadian National.
We will announce a comprehensive and workable rail policy framework in 1995. We must put the Canadian rail sector on a stable footing and try to maintain a healthy level of competition within the rail industry and against other modes.