Madam Speaker, I am pleased to respond to the matters raised by the hon. member for Regina—Lumsden—Lake Centre on June 9, 1998 regarding the discontinuance of operations over railway lines.
Mr. Estey, who is studying all aspects of the grain industry in western Canada, has been asked to recommend ways to ensure Canada has the world's most efficient, viable and competitive grain transportation and handling system to meet the ongoing and long term expectations of our customers. Mr. Estey's recommendations will not affect the economics of the operation of any prairie branch lines. Those lines with low or declining traffic owing to the closures of elevators by the grain companies will remain classified as uneconomical.
However, the rail network rationalization process was designed to encourage commercial purchases of low traffic density lines. In the event that commercial transfers are not possible, it will allow for provincial and municipal governments to preserve these lines by purchasing them at net salvage value.
Rail network rationalization in Saskatchewan is to be driven by the decisions of the grain companies. As grain companies divert grain to newer or expanded loading facilities, country elevators are closed and traffic disappears from these branch lines. The province of Saskatchewan has not exercised its right under the Canada Transportation Act to acquire these lines at net salvage value.
In closing, I would emphasize that the rail rationalization process has proven to be very successful. At the urging of the Minister of Transportation, the railways have not proceeded with the discontinuance of lines if community groups have expressed interest in acquiring them. For every line discontinued six lines have been transferred. Therefore, the government does—