Hon. Gordon Campbell, Premier
Room 156, Parliament Building
Victoria, British Columbia
V8V 1X4

Fax: 387-0087


Dear Premier Campbell:

The purpose of this letter is to request an opportunity to meet with you to discuss the potential for privatization and restructuring of BC Rail and to review our recommendations for the 2003/04 provincial budget.

My name is Victor Vrsnik and I am the new provincial director for the Canadian Taxpayers Federation - British Columbia. Upon assuming my new post last month, I am on the public record supporting the province's reforms to pharmacare, public sector restructuring and recent tax relief measures.

We believe these reforms, among others, are pivotal to spurring an economic recovery for the province. In my presentation to the Select Standing Committee on Finances and Government Services, the CTF strongly recommended exploring the advantages of privatizing British Columbia crown corporations.

We believe BC Rail is such a candidate for privatization. Its operating model as a crown has outlasted its usefulness. BC Rail has over a $600 million debt on its books; posted a $107 million deficit last year; and is short on resources for upgrades as it lacks economies of scale to curb costs and post profits.

The sale of BC Rail as a sub-division of a class-one railway company like Canadian National, Canadian Pacific or Burlington North and the sale or lease of the tracks would release the government from potential liabilities and the outdated operating model. It would clear the way for a new railway company to deliver improved and cost effective services for freight and passenger services in British Columbia.

Should the core services review conclude that BC Rail is best operated as a private company, the challenge to the government will be how to square the promise not to sell BC Rail with the commitment to provide a first rate transportation system in the province that is safe, reliable and effective. In our estimation, the higher track to pursue is the commitment to the premium transportation network that will be borne out by the sure-fire benefits of a privatized BC Rail.

I request the opportunity to meet with you to help the government make the best possible decision on the future of BC Rail as the crown corporation undergoes the core services review process.

Please find enclosed a copy of our 2003/04 British Columbia Pre-budget submission. Thank you and I look forward to your reply.

Yours truly,


Victor Vrsnik
Provincial Director
Canadian Taxpayers Federation - British Columbia