January 29, 2001
Ottawa should boost
transit by sharing gas taxes with cities
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Torontos prosperity threatened by governments lack of
financial support for public transit
(TORONTO, ON)
While Ottawa and Queens 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
governments 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 GTAs
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. Todays 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 companys 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.
Its time to end the
neglect of public transit. Its time for Ottawa and Queens 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
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Direct financial grants
for transit service expansion
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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).
Were 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.
-30-
For
further infor
mation:
John
Wellner
(416) 926 1907 x236
Michael
Roschlau (416) 365 9800
x104
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