January 29, 2001

Ottawa should boost transit by sharing gas taxes with cities -
Toronto’s prosperity threatened by governments’ lack of financial support for public transit

(TORONTO, ON)  While Ottawa and Queen’s Park stand aloof, Toronto is falling behind in providing the public transit services that are critical to growing the economy and sustaining prosperity, Pollution Probe and the Canadian Urban Transit Association (CUTA) said today.

On the eve of the federal government’s Throne Speech signaling its intentions for the next year, public transit across Canada gets minimal financial support from Ottawa.

Meanwhile, the Ontario government has cut all new financial support.

“The GTA has the only big-city public transit systems in the industrialized world not to receive financial support from upper-level governments,” said Dr. Michael Roschlau, President of CUTA.

In the United States, federal and state financial support averages 24% of the cost of operating their public transit systems. The European G7 countries provide between 15% and 30% of the operating costs.

“Toronto is competing at a tremendous disadvantage with other cities around the world,” Dr. Roschlau said.

“Our federal and provincial governments should be providing the kinds of support for urban transit that our foreign competitors enjoy,” he said. CUTA and Pollution Probe today released the report Trans-Action 2001, based on the Transit Summit sponsored by the two organizations last April.

“Public transit means cleaner air, a healthier city and a city that works better,” said Ken Ogilvie, Executive Director of Pollution Probe.

Toronto and the GTA’s public transportation system is falling behind, and “the road congestion that we are currently experiencing in the GTA will only get worse,” Elyse Allan, President and CEO of the Toronto Board of Trade, told the summit. She noted a Greater Toronto Services Board estimate that by 2011, it will take 70 minutes for commuters just to get out of the city.

“Being able to move people into, out of and throughout the region is imperative for companies and their workforces,” she said. Today’s businesses rely on just-in-time delivery that congestion threatens.

Business investment is at stake. “When companies decide to locate to a city, they are considering factors such as transportation infrastructure and the quality of life for their employees … If we want to sell head offices, if we want call centres, if we want to be a company’s transportation hub – transportation infrastructure is critical,” she said.

Canadian tax law and government policies actually now encourage inefficient, highly polluting automobile commuting, while discouraging efficient, cleaner public transit. Ontario transit riders pay about 75% of the cost of their trip, while car drivers pay 60% of the cost of their ride, with taxpayers paying the remainder through road-building and maintenance and other services.

Overall transit funding in Canada has declined 25% over the past five years.

“It’s time to end the neglect of public transit. It’s time for Ottawa and Queen’s Park to start thinking big about public transit,” Mr. Ogilvie said. “The TTC is already facing potentially insurmountable financial challenges. Our health, our environment and our prosperity are at stake.”

“Public transit funding is a win-win for the environment and the economy,” he said.

Mr. Ogilvie and Dr. Roschlau outlined the following first steps the upper tier governments should take:  

  • Share fuel tax revenues with municipalities to fund public transit

  • Direct financial grants for transit service expansion

  • Level the taxation playing field to give transit users equality with car drivers. An example would be to allow employers to provide transit passes to their workers without the employees having to pay tax for the benefit (parallel to free parking at work).

“We’re hoping Ottawa will show leadership and signal its intention to step into the transit void with some positive announcements in the Throne Speech,” Mr. Ogilvie said.

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For further infor mation:

John Wellner                                    (416) 926 1907 x236

Michael Roschlau                              (416) 365 9800 x104

 

 

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