moved:
Motion No. 67
That Bill C-14 be amended by adding after line 25, on page 72, the following new Clause:
"155.1(1) After consultation with such participants as the Agency deems appropriate, the Agency shall, on or before March 31, 1997, on the basis of the most recent calendar or crop year for which appropriate costing information is available, complete a review of and determine, for that year, the volume-related variable costs of the railway companies for the movement of grain and the line-related variable costs of the railway companies for grain-dependent branch lines as designated by the Agency pursuant to section 41 of the Western Grain Transportation Act.
(2) In carrying out the review and making the determination referred to in subsection (1), the Agency shall a ) take into account all costs actually incurred that are directly related to the provision of an adequate, reliable and efficient railway transportation system that will meet future requirements for the movement of grain; b ) compute the costs of capital and adjust that cost by any amount it deems justified in light of the risks associated with the movement of grain; c ) exclude the costs of capital and depreciation in respect of branch line assets provided under the Prairie Branch Line Rehabilitation Program and in respect of railway cars that have not been funded by the railway companies; d ) exclude the costs incurred by the railway companies in providing for and holding public meetings referred to in section 56.1 of the Western Grain Transportation Act; e ) reduce the additional costs directly attributable to the joint line movement referred to in sections 49 and 50 of that Act by an amount equal to the additional revenues derived by the railway companies pursuant to those sections; and f ) reduce the additional costs directly attributable to the acquisition by the railway companies of railway cars for the movement of grain other than box cars or hopper cars by an amount equal to the additional revenues derived by the railway companies pursuant to sections 51 and 52 of that Act.
(3) The Agency shall, on or before March 31, 1997 and on or before March 31 of every fourth year thereafter, complete a further review and determination of costs in accordance with subsections (1) and (2) on the basis of the most recent calendar or crop year for which appropriate costing information is available.
(4) In carrying out the review referred to in subsection (1) and further review made pursuant to subsection (3), the Agency shall assess the appropriateness of the level of the contribution to the constant costs of the railway companies referred to in paragraph ( b ) of the definition ``estimated eligible costs'' in subsection 34(1) of the Western Grain Transportation Act and make recommendations to the Minister thereon.
(5) In assessing the appropriateness of the level of the contribution referred to in subsection (4), the Agency shall be guided by the following objectives: a ) to ensure that the overall revenues of the railway system are adequate to meet its long-term needs; and b ) to ensure that the contribution to constant cost provided by the movement of grain is fair in relation to the contribution provided by other commodities.''
Mr. Speaker, this motion falls neatly behind the one I spoke to just a few moments ago. It fleshes out a little more the kinds of consultations the agency should engage in when doing a review. It is for an earlier review than the one required under the previous motion. In the previous motion the review was to be completed by 1999. This sets out similar guidelines for a review, which I suppose if one was a social scientist, an economist or an an accountant, would say that this establishes the base line for the future review. It establishes the same parameters and the same requirements. It looks at the same things the review in 1999 will look at but does it on the first year of the agency's activities. We will see in 1999 whether progress is made.
It will be very difficult to do a proper job of the review in 1999 if there is no base study done now. This sets up the opportunity for the agency to conduct such a base study. It will clearly establish the real costs of the system as of this coming year. When we have the review in 1999 we will know whether progress has been made and whether the act is a success or a failure.