This is getting to be an old story. Right after Xmas the RCMP (American translation: the FBI) entered our Provincial Legislative offices and raided the offices of government officials. Apparently there was a "kick back" scandal involving the CNR bid to buy BC Rail. Allegedly, jobs were offered to senior management people in BC Rail if they would supply CN with info to make their purchase bid of BC Rail more favourable. The deal to sell Roberts Bank has collapsed (CN to buy this part of BC Rail - seperate from the other bid to buy the BC Rail mainline et. al.). There is pressure on the government to cancel the selling of BC Rail to CN at all as now the bidding process has been "tarnished."
Rick, I see that you live in BC, and I was wondering what the mood is in BC about the whole BCR sale, and what do you think. Our small group of railfans here in Ontario were under the impression that BCR was established to promote the interests of BC residents in rail transportation and regional development. Now under CN, the former public owned resources are now subject to the demands of corporate profit owned mostly by non BC residents. How many BC Rail resources would have to be sold just to cover the CN President's salary.
First, BC Rail was a "socialist" railroad and it worked well under that "jacket." The government and the people of BC owned the RR. So the RR could do things other RR's couldn't or didn't want to do. And that was its downfall under a "conservative" government dressing in drag as "Liberals." For example, most RR's in North America consider passenger service akin to having the plague but because BC Rail was "socialistic" it could offer services further North with non-economic direct benefits being observed, but instead working within a mandate of servicing inaccessible parts of the province. Of course benefits were accrued to the province but not directly to the RR. Now let me expand. Some of the best RRing in Canada, outside of the Canadian Rockies is right here in BC. So many Yanks and others took the RDC's North and loved it. The RR pulled in Americans who spent throughout the province and benefited the many. But how do you demonstrate that on RR accounting book. Another couple of examples. We had the privilege of having a scheduled steam service on a daily (not quite) basis - The Royal Hudson Steam Excursion train. This train pulled in an amazing number of tourists from the States and Europe. Again these tourists were booking hotel rooms, eating in restaurants, etc and spreading their wealth around. But how do you demonstrate that on the RR books. When the conservatives (I mean Liberals in drag) took over, they wanted a conservative agenda. So no socialist rail road, no socialist ferry system, no socialist road system, etc. So an item on their agenda was to sell BC Rail. So they went to the various companies, but primarily CN whom they've had the coziest relationship with and said - "Will you buy BC Rail." And CN said - "We'd love to buy but get rid of all your passenger services." And low and behold a star was seen in the distant sky and Shepperd's from BC Rail decided that passenger service had to go - and it went. And then the three Shepperd's said that "Piggy Back" service to the interior of BC had to stop - can't have those interior people receive a service without them paying up the yin yang. And Low and Behold, piggy back service was gone. Then the three Shepard's announced that bidding for BC Rail was open to "all," but they gave CN a special wink. Many many months latter, BNSF/OmniTRAX figured out it was a rigged bid process and filed a letter of complaint and with drew from the bidding process. The conservatives (Liberals in drag) announced to one and all that indeed it was fair bid and that CN had won. And then the RCMP entered the picture this past Xmas. Now I would like to say the mood in BC is favourable to having the deal shut down, and some are making big noises in that direction. But in reality BC people are transportation illiterate and don't have a clue. Most never took it - it was a tourist and interior and skiers in Whistler kind of thing. To me the biggest joke was when Vancouver hosted the Expo in 86 with Transportation as the theme. You have to know Vancouver, but it is the most "transportation" challenged city in North America. Vancouver hosting a transportation theme was akin to Eskimo's offering seminar's in desert survival. So I'm not sure what is going to happen, the Liberals are still shouting it was a fair deal. However a side deal, kind of like cole slaw on the side, was Robert's Bank that BC Rail owned. Guess who won that bid to buy.... yep .... you guessed it... CN. Now that deal has been shut down as it could be shown that possible bribes had sweetened the pot for CN.
