The Ontario Liberals’ promise of a $ 1 public transport fare campaign to increase passengers and reduce commute costs has provoked mixed reactions from advocates and analysts, with some arguing that the money would be better spent on increased and more reliable service.
“I think it’s really good in the sense that we’re actually talking about transit tariffs, because they are, frankly, a mess in much of the province. But I think this proposal misses the point, “said Reese Martin, a Canadian transport analyst who hosts a popular YouTube channel with more than 100,000 subscribers.
“What I think [public transit agencies] “We need operating subsidies to make more services work,” Martin said.
“If you’re in Markham or Oakville or many other places in the countryside – not to mention Kingston or North Bay – the price of a $ 1 bus ticket is great. But if the bus only comes once an hour or once every two hours, it’s still a really inconvenient service to use. “
Tariffs of $ 1, which the party calls a “walk for the whole province,” will begin this year and run until at least the end of 2023. Monthly transit cards will also be limited to $ 40, liberals have promised. The party says the proposal will cost about $ 710 million in 2022/2023 and about $ 1.1 billion in 2023/2024, and that the government will replace all lost revenue for transit services.
At a news conference this week, Liberal leader Stephen Del Duca said cutting tariffs would take about 400,000 cars off Ontario’s roads every day and make life more accessible to travelers.
WATCH Liberal leader Stephen Del Duca on his plan to reduce transit tariffs across the province:
Ontario Liberals promise to reduce all transit tickets to $ 1 by 2024
Ontario Liberal leader Stephen Del Duca joins Power & Politics to discuss his promise of public transportation and how he plans to pay for it. 10:11
The proposal was welcomed by some transit riders from the Toronto area who spoke to CBC News on Monday morning.
“It’s amazing,” Jay Sharma told St Andrew Subway Station. “I am currently paying nearly $ 140 [per month]. So that would be nice. “
An Liberal Party official said internal modeling, conducted in consultation with transit experts, suggested that $ 1 tariffs could lead to a 20 percent increase in Ontario’s use of public transportation.
Road traffic is still declining in Ontario
There is no doubt that the dramatic drop in passengers caused by the COVID-19 pandemic has proved to be a constant problem for public transport services.
The Ontario Public Transportation Association (OPTA), an industry advocacy group, estimates that on average, operators operate at approximately 60 percent levels before the pandemic.
However, this figure varies considerably. Anne Marie Aikins, a spokeswoman for Metrolinx, said the regional transit agency GTHA currently monitors about 35 percent of passenger levels before Covid, while operating 55 percent of its services before the pandemic.
Because Ontario’s public transportation agencies rely on tariff box revenues for a significant percentage of their operating budgets, and in some cases a majority, passenger backlogs threaten future viability.
Ontario’s public transportation services rely on tariff box revenues for much of their operating costs. The drop in passengers during the COVID-19 pandemic has left many agencies with potentially catastrophic revenue shortfalls. (Evan Mitsui / CBC)
OPTA estimates that for every 10% drop in passengers, transit systems lose an average of $ 245 million in revenue across the province. The Toronto Transit Commission (TTC) alone predicts a revenue shortfall of $ 561 million in 2022.
That’s why commitments to sound operational funding must take precedence over overall reduced tariffs, according to Gideon Foreman, a David Suzuki Foundation’s climate change and transport policy analyst.
“The study as a whole shows that for people who are comfortable, middle-income or higher, the main problems with transit are convenience, speed, reliability and the like,” he said.
Deep tariff cuts for low-income Ontarians, coupled with money for better services on existing transit networks and new projects, could be key to improving passengers to pre- and post-pandemic levels, Foreman said.
Terry Johnson, president of the non-partisan advocacy group Transport Action Canada, called the prospect of $ 1 tariffs an “exciting idea” that could encourage some drivers to drop their cars off public transport while offering relief to Ontario residents from rising inflation.
Cheaper tariffs must be balanced with large investments for the future, he added.
“We need to do the sorting that is needed after the pandemic to encourage riders to return,” Johnson said, but without short-term money to improve transit, it will take even longer to restore the nets.
“If the service is canceled because there is no funding, the decline in passengers is likely to be longer and more difficult to recover.”
Liberals commit $ 375 million a year to transit operating costs
Liberals have previously pledged to increase annual subsidies by $ 375 million for the operating costs of municipal transit services.
Shelagh Pizey-Allen, executive director of the Toronto-based advocacy group TTCriders, said this element of the Liberals’ public transport plan has caught her attention the most. She said the commitment was a “good first step” but whether it would be enough to help transit service providers dig their pandemic holes.
“We wonder if this will be enough to protect municipal transit from service cuts that … may be on the horizon as transit agencies continue to face COVID shortages due to lower passenger numbers?” he said.
Until the 1990s, the Ontario government covered 50% of the operating costs of public transportation agencies. Since 2013, provincial funding has come through transfers from natural gas tax revenues.
Metrolinx, which monitors the GO Transit network, monitors about 35% of passengers from pre-pandemic levels. A spokesman said the figure is expected to increase significantly in the coming months. (Evan Mitsui / CBC)
Both the Ontario NDP and the Green Party have pledged to reintroduce the 50 percent operational cost-sharing model for municipal transit services, which parties say will allow agencies to cut tariffs over time.
Progressive conservatives have shifted much of their focus to major transit infrastructure projects, promising $ 61.6 billion over 10 years as part of a capital spending plan unveiled in last week’s 2022 election budget.
When it comes to accessibility measures related to transport, computers are largely aimed at drivers elimination of license renewal fees and promising to reduced the provincial gas tax by 5.3 cents per liter for six months, starting July 1.
In March, however, the government did drop out some local transit fees for riders using the GO Transit network to connect to and from their local systems. The province has also increased discounts for young people and post-secondary students.
The government of Prime Minister Doug Ford also provided a one-time infusion of $ 120 million for municipalities with public transportation services to make up for lost gas tax revenue as residents drove less during the COVID-19 pandemic.
This funding came in addition to approximately $ 2 billion in joint federal and provincial money that went to municipal transit services through the Safe Restart Agreement in 2020.
This year, Ottawa announced a one-time infusion of $ 750 million to municipalities across the country, of which $ 316 million went to Ontario. At that time, the province was responsible for this funding, which was intended not only for public transport, but also for all municipal services.
In the 2022 budget, the province acknowledged that funding “may not be enough to deal with public transit pressure” and called on the federal government to provide additional cash flow.
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