CPR's Regulated Business Environment
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CPR operates in a highly regulated environment. Federal and provincial regulations impact the competitiveness of Canadian railways and the customers we serve.
Key federal legislation: Over the last fifteen years, the federal government has progressively de-regulated the rail industry. In 1996, the federal government passed the Canadian Transportation Act (CTA). A review of the Act is legislated to occur every four years. The most recent review process was initiated in June 2000 with the appointment of a five member panel. The panel must submit its report before the end of June 2001.
Overall, deregulation has had a positive impact on CPR's operations; however, more is needed to support the economic and productive growth of CPR and Canada's rail industry. Continued de-regulation has a direct impact on the services and rates that we offer shippers.
Currently the most important federal related issue that CPR is overseeing is the review of the CTA.
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Federal, provincial, and municipal regulations and policies
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Safety: The Railway Safety Act - Transport Canada along with the Transportation Safety Board monitors the safety of all federally regulated railways (federally regulated railways include those that are classified as a Class 1 Railway - a railway with an annual revenue greater than $250 Million).
Taxes: Canadian economic success depends on having among the most cost-effective, efficient, and reliable transportation systems to deliver products to markets. A key to this goal is having a competitive tax rate which would lead to:
- more competitive products;
- lower costs to producers/ shippers/ businesses; and,
- more investment in reliable, modern railway infrastructure and services.
Among the taxes that we pay to federal, provincial and municipal governments are: fuel, property, sales and capital.
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