| FOR IMMEDIATE RELEASE | CONTACT: Ron Zellar |
| February 11, 2008 | (406) 444-3144 |
Top Agriculture Officials Back Railroad Reforms
WASHINGTON DC – The nation's state agriculture directors, commissioners and secretaries endorsed legislation Monday to restore the balance of power between railroads and captive shippers including the Montana grain industry.
"The federal Surface Transportation Board has chosen to interpret existing laws as a license for railroads to charge excessive rates and provide poor service. We're urging Congress to quickly pass legislation that will make reliable service, competition and fair rates a priority," said Montana Agriculture Director Ron de Yong, who sponsored the resolution approved by the National Association of State Departments of Agriculture (NASDA).
The Staggers Rail Act of 1980, adopted at a time when railroads were in decline, allowed rail carriers to charge higher rates to captive shippers, but also required federal regulators to protect shippers in cases where there was no effective competition, de Yong said. The Surface Transportation Board has not adequately protected captive shippers in Montana.
The NASDA statement supports the Railroad Competition and Improvement Act, introduced as HR 2125 in the House and S 953 in the Senate, and the Railroad Antitrust Enforcement Act, introduced as HR 1650 in the House and S 772 in the Senate.
HR 2125 and S 953 ensure that rail customers have access to competitive rail service and that rail customers without access to competition are protected from unreasonable railroad rates and practices and have access to reliable rail service. The legislation also includes provisions such as final offer arbitration, which are especially important to the agriculture industry.
HR 1650 and S 772 would expand provisions of federal antitrust laws and eliminate exemptions that are contrary to the public interest with respect to railroads. Senator Patrick Leahy (D-VT), chairman of the Senate Judiciary Committee, has placed S 772 on the Senate calendar for possible early action.
The legislation is supported by the Alliance for Rail Competition, which includes the Agricultural Ocean Transportation Industry, the American Chemistry Council, American Public Power Association, Consumers United for Rail Equity, the Edison Electric Institute, National Association of Wheat Growers, National Barley Growers Association, National Petroleum Refiners Association, National Rural Electric Cooperative Association, Paper and Forest Industry Transportation Committee and the United Transportation Union.
While in Washington for the NASDA winter meeting, de Yong also met with
members of the Montana Congressional Delegation to discuss legislation including
the Farm Bill and funding for food processing, bio-fuel testing and fighting
noxious weeds in Montana.
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