By Federico Cura
Passenger Transport Reporter
Canadian transit leaders are expressing optimism at several recent signs from Ottawa
indicating that the Canadian government might start bridging the growing capital
investment deficit facing several transit systems in the nation's cities.
The federal government in Canada, which has played a marginal role in funding public
transportation over the past 30 years, has been hinting that it may play a larger role in
improving transit infrastructure, said Michael Roschlau, president and chief executive
officer of the Canadian Urban Transit Association.
Over the past five years, financial support for public transportation from all
government sources has declined by 25 percent, CUTA noted, and only three Provincial
govemments-British Columbia, Manitoba, and Quebec-make significant direct investments in
conventional transit. CUTA Manager of Public Affairs Amelia Shaw explained that other
provincial and territorial governments have been providing indirect assistance toward
transit or other municipal transportation priorities, or have provided direct capital or
operating funds supporting only paratransit services.
Over the years, much of the weight for funding transit has fallen on municipal
governments, which now account for over 90 percent of total government operating and
capital assistance, Shaw said. As provincial governments have reduced their contributions
to transit over the years, transit systems have had to increase fares and compromise on
capital projects.
Signs of Change
However, in the Jan. 30 Speech from the Throne, the Canadian government expressed its
commitment to improving public transportation infrastructure for the first time in
decades. The Throne speech, which resembles the State of the Union address in the United
States, maps out the government's agenda until the next elections. The Right Honourable
Adrienne Clarkson, who is Canada's governor general and considered a symbolic
representative of the British monarchy, delivered the ground-breaking Speech from the
Throne in the Senate chamber on Parliament Hill in Ottawa.
In the speech, Clarkson said the federal government would cooperate with provincial and
municipal governments to help improve public transit infrastructure, Moreover, she noted,
the federal government would work "with partners across Canada to launch a dialogue
on the opportunities and challenges facing urban centers," and to ensure that,
wherever possible, "its actions and programs are coordinated to help build local
solutions to local challenges."
While vague in nature, these words "do represent the first official signal of this
nature in over 30 years," added Roschlau.
The speech was consistent with new references in the Liberal Party's election platform
that helped the party, associated with Canada's political center, win the November
elections. For the first time, the platform, known as the Red Book, emphasized the need
for effective public transit systems. Another important development in the past few weeks
was the announcement by Prime Minister Jean Chretien that a Prime Minister's Caucus Task
Force on Urban Issues is being established to study urban issues such as public transit
financing and to advise the prime minister. The task force consists of Liberal (governing)
members of Parliament representing urban areas across Canada.
The task force, chaired by Judy Sgro, a member of the House of Commons representing a
Toronto-area district, will deliver an interim report by April 2002 and a final report by
December 2002. The caucus taskforce will study public transit at a time when the
government is undertaking a major review of the Canada Transportation Act, the main piece
of legislation regulating surface transportation, which was last revised five years ago.
Roschlau suggested that CUTA’s first-ever "Public Transit Government Affairs
Day on Parliament Hill," held Feb. 27 in Ottawa, helped to pave the way for the
creation of the caucus task force. The Government Affairs Day, which closely resembles
APTA’s Lobby Days, was part of the industry's increasing emphasis on government
relations and advocacy, geared to educating parliamentarians and federal government staff
about transit needs and challenges, he said.
The most significant development of the past two years--when CUTA began seeing signs of
change from the federal government--was the expressed commitment made toward transit in
the Throne speech, Roschlau said: "Strategically, it's a very important time for
Canadian public transportation. I am cautiously optimistic."
Stronger Partnerships Likely
The federal funding issue for transit is part of a broader political conundrum that
traces back to the Canadian Constitution and to a history of tension between the federal
and provincial governments over jurisdictional issues, Roschlau explained. Provinces have
often looked askance at federal funds, with or without strings attached, for fear of
increased federal involvement in provincial and local issues. The Canadian Constitution
states that urban issues are the jurisdiction of the provincial government rather than the
federal government. Nevertheless, Roschlau said he believes there are effective ways for
the federal government to support transit in partnership with other governments.
Transit industry leaders predict that federal, provincial, and municipal governments
are likely to form stronger partnerships in the future aimed at funding transit capital
projects. Moreover, the private sector increasingly will form partner-ships with transit
agencies and government to finance infrastructure projects, said Gordon Diamond, director
of OC Transpo in Ottawa.
"I think everyone is waking up to the fact that we can work better together than
apart," Diamond said. He noted that all levels of government are realizing that
transit is key to achieving a number of goals such as reduced greenhouse gas emissions,
improved air quality in urban areas, reduced traffic congestion, and improved commerce.
The government wants to help reduce the growing traffic congestion and air quality
problems that have emerged inmost cities, Roschlau said, adding, "There has been much
talk about gridlock in Toronto, Montreal, Vancouver, and even in Ottawa, where it was
never an issue. "Air quality in Canadian cities has been declining in the past few
years. The government is trying to reduce greenhouse gas emissions to meet its commitments
under the Kyoto Protocol. Municipalities have increased the pressure on the federal
government over the past two years to help support transit.
CUTA now expects to collaborate with the new urban issues taskforce and to review urban
transportation research that will be made public in coming months by the Canada
Transportation Act Review Panel, said Roschlau. The work of the task force and the CTA
Review Panel research could become the foundation for an increased federal role in transit
funding.
Canada is the only large industrialized country that does not support transit,
according to Roschlau. CUTA already has submitted comments to the CTA Review Panel
outlining the overall national benefit provided by transit and the industry's many unmet
needs.
Raising Transit's Visibility
Over the past two years, he said, CUTA and the nation's transit systems have worked
hard to raise the profile of public transportation in federal circles by networking with
many members of Parliament and with federal agencies that are affected by public
transportation issues, including transportation, environment, natural resources, health,
and industry. David Colienette will become the first Canadian transport minister to
address CUTA at its annual meeting in June.
The transit industry has succeeded in raising the visibility of transit services,
Diamond noted. Members of Parliament have started speaking up about the benefits of
effective public transportation.
"The changes in Ottawa are encouraging," said Diamond, who predicted that
February's lobby day likely will become an annual event. Transit agencies want to keep
educating the Parliament about transit needs and continue relationships with members of
Parliament that may have started during this year's lobbying efforts, he added, and the
idea of lobbying is becoming more accepted in the Canadian transit industry.
Roschlau pointed out that Canada is facing a very acute deficit in its public transit
infrastructure, much of which is outdated. Demand for public transportation service has
been increasing over the past few years: CUTA data shows that ridership has been rising
steadily since 1996, and the increase or 2000 was the largest since 1991. Transit in
Ottawa, for instance has been experiencing annual ridership gains of 7 percent to 8
percent.
To cope with this situation, transit agencies have gradually increased their fares and
have had to make many cutbacks in service. Agencies are buying second-hand buses from the
United States, which often pollute more than new buses. For example, Roschlau said,
Canadian transit agencies wanting to improve the accessibility of their fleets have had to
postpone the purchase of low floor buses.
In British Columbia, transit agencies have been talking to their representatives in the
Canadian Parliament about their needs and about the need for the federal government to get
involved, said Robert Irwin, president and chief executive officer of BC Transit in
Victoria, B.C.
"The federal government senses that it has to become more involved," said
Irwin. "The question is how and where the federal government might get
involved."
The government may want to know how to step back in "gracefully" and then get
some political credit. Irwin explained that the government tried to get involved in urban
issues approximately 25 years ago, but "it got burned" by the provinces and the
municipalities: "Once burned, twice shy."
However, much has changed in the last 25 years, Irwin noted. Canadian cities have grown
bigger and become engines of growth, "city-states" partly fueled by a growing
economy. Now, the federal government must help improve the quality of life in the cities
as a way to sustain economic growth, Irwin said.
Some provinces have cut taxes, Irwin is said, and most have "downloaded" many
responsibilities to the municipalities, but without providing the funds. The
municipalities lack the large tax authority of the provincial and federal governments, and
have become unable to keep up with for an increasingly inadequate public transportation
infrastructure, he added.
Cities in the provinces of British Columbia and Alberta have begun receiving a portion
of the provincial tax on fuel consumed in their cities, which has helped compensate for
the loss of federal funds, Irwin noted.
Kay Hsu, legislative assistant to Sgro, chair of the new taskforce, said Canadian
cities are experiencing financial difficulties, which some people call a "cash
crunch." Hsu explained, "Cities are having less money, but are expected to
deliver more services," and the government wants to find solutions but does not want
to overstep boundaries.
Stable, Predictable Support is Key
Transit agencies need a stable, predictable funding source---coming from an ongoing
program-to support capital improvements and operations, said Clive Rock, manager of
strategic planning for the Greater Vancouver Transportation Authority (TransLink).
Agencies need the federal support particularly for planning purposes and procurement,
but also for operations because of the high costs associated with running and maintaining
a bus or a rail car. "However, we would be grateful for any federal funding,"
said Rock. Among other things, he said, TransLink will need funding to replace an aging
fleet of morethan 200 electric trolleybuses.
The federal government must step into keep Canadian cities vibrant, safe, non-polluted,
and prosperous, he asserted.
The transit industry needs to educate politicians and government officials to help them
understand that public transportation is a very capital, intensive industry, said Lynn
Hilborn, deputy general manager-corporate for the Toronto Transit commission. Buses and
subway cars are very expensive, and transit agencies need a predictable source of revenue
to plan bus purchases several years into the future. Politicans tend to look at budget
issues one or two years out, Hilborn noted.
On the research front, CUTA plans to start updating the 1999 Survey of Transit
Infrastructure Needs in the coming months to help establish the transit systems'
infrastructure investment needs. The results will form the basis of an up-dated five-year
capital estimate that will be used in discussions with the federal and provincial
governments, in budget submissions, and for industry planning purposes.
Diamond and CUTA are hopeful that the Department of Transport will direct some funds
from a new program aimed at improving the nation's infrastructure to public
transportation.
On the provincial front, after a three-year hiatus, the Ontario government recently
announced its intention to fund several public transportation projects, a new commitment
to funding public transit.
Although Roschlau and other industry leaders welcome Ontario's decision, they cautioned
that the funding is aimed at selected projects mainly connecting suburbs to urban areas,
and that does not support transit needs of smaller municipalities and of the City of
Toronto.
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