News Release

June 1, 2005

Additional Support for Public Transit as part of
the New Deal for Cities and Communities

(OTTAWA, Ontario – June 1) – Minister of State (Infrastructure and Communities) John Godfrey today announced that he has started negotiations with the provinces and territories to invest up to $800 million, over two years, in public transit. While these negotiations will be part of the New Deal for Cities and Communities, these funds are separate from, and in addition to, the $5 billion over five years in federal gas tax money announced in February for environmentally sustainable municipal infrastructure.

“We have always said that the New Deal would serve as an important mechanism for transforming the way that the Government of Canada does business with cities and communities.  I have heard – loud and clear – of the transit needs of our biggest cities as well as the needs of other communities to improve their public transit systems.  Because of the relationships developed over the past year through the New Deal, we are able to provide much needed help for both,” stated Minister Godfrey. 

This investment in public transit will support environmental objectives such as reducing air pollution and limiting emissions that contribute to climate change. People who travel by public transit create far fewer greenhouse gas emissions than if they were to travel by car.  In addition, by reducing traffic congestion and supporting the mobility of people and businesses, public transit is a major factor in keeping Canada’s cities liveable, attractive and more competitive. 

“I am pleased that this funding will be directed towards the transit needs of our cities, where it will provide a host of benefits to Canadians, including cleaner air, reduced congestion and fewer greenhouse gas emissions that cause climate change. Government and industry achieve great things when they work together. These relationships are critical to promoting sustainable transportation that balances our national economic and social goals with environmental responsibility,” said Transport Minister Jean-C. Lapierre. 

“The New Deal for Cities and Communities together with Moving Forward on Climate Change: A Plan for Honouring our Kyoto Commitment are two of the key initiatives for achieving our goals of a competitive economy and a cleaner, healthier environment,” said Environment Minister Stéphane Dion. “Canadians want sustainable transportation choices and the public transit initiative will give them what they need.”

The investment of up to $800 million will be allocated to provinces and territories on a per capita basis. Consistent with the intent of this initiative, it is proposed that the agreements stipulate that funds be distributed within each province and territory to municipalities and transit agencies based largely on transit ridership. Transit funding will also go to two jurisdictions – PEI and Nunavut – which currently do not have public transit systems in place, for investment in capacity building and developing new transportation options.

The funding is provided under Bill C-48 for the environment, including for public transit, currently being considered by Parliament.  The total amount of support available for transit will depend on the available surplus in the current fiscal year and in 2006-07.  Funds will be used to refurbish and replace fleets, upgrade and refurbish terminals and garages, invest in new light rail, subway and bus rapid transit systems, replace and rehabilitate tunnels, stations and other structures, and utilize new intelligent transportation systems designed to improve services for both passengers and operators. These are the core priorities of the transit systems, which provide services to 70 percent of Canadians. 

This announcement builds on over $1.2 billion in other Government of Canada commitments to public transit projects across Canada over the past five years.  This includes important investments in Victoria, Vancouver, Edmonton, the GTA, Montreal, and several other communities across Quebec.

“We have already signed three gas tax agreements, with British Columbia, Alberta and Yukon. I expect to be signing more gas tax agreements – and public transit agreements – in the coming weeks and months,” concluded Minister Godfrey.

Allocation to the provinces and territories of the transit funding totalling up to $800 million over two years

Numbers do not add due to rounding.

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