VICTORIA: The Canadian Taxpayers Federation (CTF) today applauded the B.C. government's partnership deal with CN to privatize the operation and maintenance aspects of BC Rail.

"In breaking a 'New Era' promise it made foolishly in the first place, the B.C. government has finally taken off its rail conductor's hat and given it over to a more competent private operator," said B.C. director David Hanley.

Taxpayers will benefit from the 90-year, $1-billion deal, which will eliminate BC Rail's $500-million debt, and save the treasury $30-million a year in interest payments and $40-million in annual maintenance to rail cars and infrastructure.

BC Rail's rights-of-way, railbed and tracks will remain legally protected under public ownership.

"For all the hysteria coming from the Opposition and anti-privatization groups, this deal will benefit many communities across the province," added Hanley. "Municipalities can expect to reap nearly $8.3 million in tax revenues each year from CN's operations, compared to the $1.8 million they receive from B.C. taxpayers as grants in lieu."

The deal also calls for an expansion of the Port of Prince Rupert, significant community investments for Prince George and the North, and the development of new tourist-passenger train services. "While this government has been tentative, at best, when it comes to easier privatization initiatives such as liquor stores," said Hanley, "perhaps the most important message being delivered today is that B.C. is finally capable of pursuing public-private partnerships where the public component, i.e., taxpayers, are the true beneficiaries."