CNÆS TELLIER PROPOSES TAX CREDIT FOR CANADIAN RAIL SHIPPERS
Paul M. Tellier, president and chief executive officer of Canadian National Railway Co., has proposed that Canadian governments a tax credit for shippers using railroads in Canada.
The tax credit, which would be funded from Can$160 million in annual fuel taxes already levied on Canadian railroads would motivate shippers to move freight by rail rather than by truck, Tellier said in a speech Tuesday.
He claimed the credit would:
* Reduced freight rates by 10 to 15 percent, saving 'hundreds of millions of dollars.'
* Divert 100 million tons of freight — or 3 million truckloads — from highway to rail.
* Save about $500 million in highway maintenance and construction costs.
* Reduce environmental hazards caused by truck traffic.
'The tax credit wouldn't cost governments anything, because they would save even more on infrastructure costs related to increasing road traffic volumes,' Tellier said.