A leaked
document dated July 30, 2003, from BC Rail provides the
crown corporation's second quarter 2003 financial results.
The key paragraph says:
"In
the first half, BC Rail's operating income rose to $43.6
million, 28.5% higher than the first half 2002. Despite
the loss of all coal traffic in 2003, a 4.5% reduction in
revenue was more than offset by a 6.3% decline in expenses
for the half. Revenue was $152.6 million while expenses
were $90.4 million. For the quarter, operating income was
up 32%, revenue down 1.5% and expenses down 10.4% over the
same quarter last year. So much for 2002 being an anomaly."
The
government claimed that good financial results in 2002 was
an anomaly, now BC Rail is providing refutation.
Using
their 1984 style "new speak" the government is
attempting to redefine the word "sell". Premier
Campbell's infamous New Era Document clearly says that a
BC Liberal government "will not privatize or sell BC
Rail" (p. 9). No
wonder that almost 90% of those asked about government's
current plans for BC Rail say that Campbell broke his promise.
The
primary source of information on the government's plans
has been leaked documents from BC Rail. Those documents
project large scale job loss and the possibility of significant
increases in freight rates - just what the forest industry
needs. The industry is in no position to push back against
the Campbell government as it works its way through the
most significant restructuring in its history, with changes
to the Forest Practices Code, tenure, tenure take backs
and pricing, all courtesy of the Campbell government's failed
efforts to appease the US.
Many
believe that Campbell would have won the 1996 election had
he not said that he would sell BC Rail. The BC economy cannot
afford another ill conceived experiment by an inexperienced
government. Thanks to Section 11 of the North American Free
Trade Agreement, some changes can never be reversed. The
Campbell government should slow down and get some independent
advice on the consequences of its plans. Most of all, the
government should honour its promise to be open and accountable.
The public shouldn't have to depend on leaked documents
to discover what is really happening at and to BC Rail.
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