|
|
November 6, 2006
Address by the Honourable Jim Flaherty, Minister of Finance, to the
Canadian Urban Transit Association 2006 Fall Conference and Trans-Expo
Toronto, Ontario
Check against delivery
It’s great to be here, and I’ve got to tell you how happy I am to be
here because I know this is a conference about transit and not about taxes,
so I’m relieved to be here, and there’ll be no tax announcements, I’ll
tell the media right now. I’m not going to talk about taxes this morning,
except how we can use some of our revenues federally to help out with
respect to transit public infrastructure across Canada.
I thank GO Transit for getting me here this morning from Whitby, which I
very much appreciate. Those of you who are from southern Ontario know the
importance of public transit in the Greater Toronto Area and how it makes it
work. In my community where my family and I live, public transit, especially
the GO system, is vitally important for all of us. More than half the people
that live in my community travel every day to work somewhere outside of our
community, so public transit is something very close to our hearts in the
Greater Toronto Area.
It is a pleasure to be here with those of you representing the Canadian
transit industry—the managers and operators, and the suppliers and
manufacturers, and the planners and the builders. I can tell you, as
Minister of Finance of Canada, I appreciate the service you provide
Canadians each and every day. You literally move millions of workers,
students and seniors in communities from coast to coast to coast.
You help drive growth in the Canadian economy, which is also dear to my
heart as the minister responsible for the Canadian economy, and we cannot
underestimate the importance of that economic role of public transit in
Canada.
Public transit has gained prominence at a time when Canada is struggling
to come to grips with some daunting challenges. The unprecedented migration
of families and businesses has led to bumper-to-bumper traffic in many urban
regions across the country. Congestion has become the number one issue for a
growing number of Canadians, especially here in the Greater Toronto Area. In
fact, in a survey of Toronto CEOs last month, 37 per cent identified
transportation issues as their top priority.
As a long-time resident of the GTA, I can certainly understand their
concern. Traffic congestion is stretching out travel times, impeding
business and harming the environment. The consequences are serious. The
potential solutions are well documented. Study after study have identified
the infrastructure needs, evaluated the alternatives and made countless
recommendations.
Ladies and gentlemen, the time for study is over. This is the time for
action. Canada’s New Government is setting out a course of action to cut
the commute, clean the air and drive the economy. Let me take a few minutes
to explain.
Mobility is something that many Canadians take for granted—the freedom
to move unencumbered, to get to work, to get to school or simply to get
away; the freedom to move goods to market on schedule, on time and at low
cost. This freedom is being gradually eroded. Tremendous growth has
restricted our mobility and we are falling further and further behind. Our
current infrastructure was not designed to handle the huge influx of people
and the resulting traffic in many parts of our country. There is no better
example of that than right here in the GTA.
This area has become the destination of choice for many families, small
businesses and corporations, making this region one of the fastest-growing
economic centres in Canada. Every year, millions of trucks run along the 401
corridor from Montréal to Windsor directly through the heart of the GTA.
According to transportation experts in Canada and the United States, the 401
Highway and Highway 400 is the busiest section of highway in the entire
world. Because of 18-hour-a-day stop-and-go traffic, Highway 401 has been
called a "linear warehouse," full of goods destined for millions
of consumers worldwide seven days a week. We must ask ourselves, how much
more traffic can the GTA handle?
There is overwhelming evidence to suggest that we surpassed our limit
some time ago and are heading down a road that is neither desirable nor
sustainable. The Toronto Board of Trade estimates that congestion in the GTA
is now responsible for $2 billion in lost productivity, and that figure is
bound to grow. A study by Statistics Canada indicates that Toronto residents
spent 79 minutes per day commuting to and from work, which is the longest
commute in Canada. According to U.S. census figures, the GTA has longer
commute times than New York at 77 minutes and Los Angeles at 57
minutes. And it is estimated that an additional 2 million vehicles will
be added to GTA highways and roads over the course of the next 25 years.
These challenges, of course, are not exclusive to the GTA but they
highlight the urgency of the situation, not only here but in growing centres
such as Vancouver, Calgary, Ottawa, Montréal and Halifax.
As the old saying goes, build it and they will come. The originator of
that saying must have had highways in mind. We keep adding lanes and
building new roads and highways, yet traffic congestion continues to get
worse. In fact, the 407 ETR in the GTA has just completed an expansion from
Richmond Hill to Vaughan. While similarly financed, built, operated and
managed highway investments such as the 407 are certainly welcome, they are
only part of the solution. Public transit must play a much more prominent
role. Commuters need a viable, more environmentally friendly option to
driving. It is essential if we are going to be able to absorb all of the
expected growth without making a bad problem worse.
In major urban centres throughout the world such as New York, London,
Paris and Hong Kong, public transit is attractive, affordable and an
accepted mode of travel by the vast majority of people.
Now here in Canada we are making modest gains on the transit front. As
your organization has pointed out, ridership in Canada has increased for the
third straight year, with an all-time record in 2005. Ridership in the GTA,
I’m told, has reached 550 million trips, accounting for 34 per cent of the
national total. Transit has improved and Canadians are increasingly getting
on board, but with about 55 transit trips per capita per year we have a long
way to go. The Canadian Urban Transit Association, your association, has
pegged the transit infrastructure deficit at about $20 billion over the
next five years to maintain the current systems and to expand to accommodate
growth.
These numbers are staggering but the need is without question. Public
transit is not just about moving people and strengthening the economy. It’s
about creating sustainable, functional and livable communities. Public
transit is the backbone that in many ways connects society.
If you look at Yonge and Bloor streets in Toronto, if you look at
Vancouver, the United States, cities like Portland, Oregon, Arlington,
Virginia, Boston, Massachusetts, if you look at Bogotá in South America and
Seoul, South Korea, where I was last month, in these places you will not
only find rapid transit but also traditional "transit villages"
growing around each station, places where people can walk in safety, where
they can live, work and play without the need of a car. Communities where
life revolves around transit, providing all that life has to offer within a
few blocks.
It’s a concept that has recently taken root in British Columbia and in
parts of the United States and is in its early stages of development in some
urban GTA jurisdictions such as York Region. It’s an urban renaissance
that is being repeated all around the globe. Our buses, trains, subways and
streetcars are the catalyst for sustainable development. They are
instrumental in getting cars off our roads. They will help us achieve our
ultimate goal of cutting the commute. So the facts support the needs for
future investment in transit. Canada’s New Government is taking a
proactive approach and providing that support.
So in Budget 2006 our government introduced the public transit pass tax
credit. There it is. It’s something I know your membership lobbied for—lobbying’s
okay—lobbied for and supported wholeheartedly. In fact, at the time, you
said, your organization said, and I quote, "The government’s tax
credit for transit pass users is a strong signal that the government is
committed to promoting transit use. It rewards transit customers for making
smart travel choices." And I couldn’t agree more. It’s an
initiative that was long overdue. We all know that public transit is vital
to achieving a cleaner and healthier environment. Anything we can do to
entice people to park their keys and take transit is certainly a step in the
right direction environmentally.
Whether it has taken 10,000 cars or 50,000 cars from our roads, the
success of the tax credit transcends the raw numbers. Clearly, there has
been a significant public relations education factor. The tax credit has
been a vehicle to promote the benefits of transit. It has been prominently
featured in marketing campaigns across Canada, including the one unveiled
here today. While taking the TTC recently, I noted the "transit is less
taxing" tag line and it certainly is effective.
Another government initiative that I believe will be effective in
improving the environment is Canada’s Clean Air Act, which was introduced
last month by my colleague, the Environment Minister Rona Ambrose. And Rona
was here with me on Friday in Toronto doing further environmental
consultations with respect to implementation. The new Clean Air Act will
complement the public transit tax credit by setting short-, medium- and
long-term intensity-based greenhouse gas reduction targets. The Government
is committed to achieving an absolute reduction in greenhouse gas emissions
between 45 per cent and 65 per cent from 2003 levels by 2050. It’s
important to note that these targets would exceed those proposed by the
previous government.
It’s also important, I think, to note three things. One is we will
regulate, the Government will regulate industries, all industries across
Canada. For the first time, a national government will do that with all
industries. And we’ve been working closely, as we were again on Friday
here in Toronto, with the leaders and the CEOs in the auto sector, that
sector being vitally important to the Canadian economy, vitally important to
the economy of the province of Ontario. So there’s that regulation step,
which is the first time that a national government has ever done that in
this country.
We are also going to reduce air pollution, and that is the first time air
pollution has been targeted. And, as I’ve already mentioned, we’re going
to reduce greenhouse gas emissions not in Russia, not somewhere else in the
world, not by trading credits, but here in Canada.
So over the next three years you’ll see new regulations, targets and
timelines, which will be established in consultation with people across
Canada, including many of you here in this room today. We believe these
initiatives will lead to significant, long-term reductions in air pollution
and greenhouse gas emissions from industry, consumer products,
transportation and transit.
If we are going to clear the air in this country, you, in partnership
with government, will play a vital role. Transit technology is constantly
improving with the introduction of fuel-efficient rapid transit and hybrid
vehicles. We all know it takes more than just wishful thinking. It takes the
financial resources and it takes political will. I am pleased to say that we
have now entered a new era of federalism in Canada—an era of partnership,
determination, accountability and fiscal responsibility.
Canada’s New Government recognizes that governments must work together
to address this transportation infrastructure challenge because
infrastructure is not only key to moving people, it’s key, it’s critical
in fact, to sustaining our quality of life, to strengthening our economy and
improving our economic union as a nation. These areas are critically
important to governments, including ours. If we are going to improve our
competitive advantage in this fast-paced global economy, we will have to
move decisively.
Ladies and gentlemen, I am proud to say that within 100 days of taking
office, our government took significant steps to address this issue. In
Budget 2006 on May 2nd, we committed significant dollars to transportation
infrastructure and public transit. Over the next four years, we will invest
a total of $16.5 billion in new infrastructure initiatives, including $3.5
billion in 2006 and $3.9 billion in 2007. The budget itself provided $2.4
billion over the next five years for a new Highways and Border
Infrastructure Fund, which will be used to improve key infrastructure such
as the Windsor-Detroit gateway. The Prime Minister and Minister Emerson
recently announced $591 million for Canada’s Asia-Pacific Gateway and
Corridor Initiative. Under the Canada-Ontario Agreement, the province will
receive an additional $300 million for infrastructure. That’s $300 million
that Ontario will be receiving that other provinces will not be receiving
because of the particular provisions of the Canada-Ontario Agreement.
This fall, we provided $900 million to the provinces for public transit,
which includes $351 million for Ontario alone. That was the money we
put aside just before the budget. You may recall that that would be paid out
if we had a sufficient surplus, and we don’t see the surplus numbers until
September. But we saw them, and that money went out in late September. This,
of course, is on top of the $1.9 billion for Ontario through the 2009–2010
year as a result of our gas tax sharing arrangement, and an additional $300
million per year in increased funds for Ontario municipalities as a result
of increasing the GST rebate to 100 per cent.
So clearly, the dollars are very substantial and the commitment is
genuine. But, as you and I both know, the current piecemeal approach to
funding significant transportation infrastructure projects is no longer
sustainable. As part of the discussions to restore fiscal balance in Canada,
our government committed to adopting a long-term funding framework for
infrastructure. The federal government has a huge stake in ensuring the flow
of people, goods and vehicles. These are key to ensuring a vibrant and
dynamic national economy, which is something of great concern to this
government and to me in my job as Minister of Finance.
In today’s interdependent world of trade and security, modern, smart
infrastructure is not a luxury, it is a necessity. So under the leadership
of my colleague, the Minister of Transportation and Infrastructure, Lawrence
Cannon, the Government has been consulting with the provinces and
territories and reviewing the scope and the design of the various federal
infrastructure programs to ensure they are accountable and strategic in
approach. And I understand Lawrence is just wrapping up his work and he’ll
be providing me with a report very shortly.
So I think you would all agree that it’s time to set out on this
important journey to match the substantial investment by the taxpayers of
Canada in public infrastructure, which has been announced, the long-term
sustainable commitment that we’ve made to match that commitment with
infrastructure, with transit projects that are of national importance to the
economy of Canada. That is a proper role for the Government of Canada to
show leadership on, and with respect to which the Government of Canada is
anxious to participate.
It is time to blaze a trail to infrastructure renewal. It’s time to
ensure that rhetoric never again takes precedence over action. The goals are
too important and the consequences of inaction too severe. Over the past
several months, my staff and I have been consulting with community leaders
throughout the Greater Toronto Area. We have spoken to mayors, regional
chairs, municipal councillors. We’ve met with the university and college
presidents, police chiefs and various community groups. We’ve asked them
to do several things: one, to share their ideas, to list their priorities
and to provide us with insight into transportation projects that will
benefit their communities now and years from now. At the end of the process,
we compiled a list of vital projects that are worthy of priority
consideration. I will have more to say on this in the not-too-distant
future, not today.
Investing in transportation infrastructure is about more than bridges and
roads, of course, and buses and trains. It’s about keeping our country
moving, which is one of the reasons I’m here at this conference today. It’s
about creating a seamless, modern and safe, secure transportation system. It’s
about reducing unnecessary highway travel and providing transportation
options so goods can get to market on time without massive losses in
productivity. This is something very much on my mind as we prepare the fall
fiscal update and an economic plan for Canada, that we must relate
transportation, transit, the economy, the environment, security. All go
together in creating a viable economic plan for Canadian prosperity going
forward, which is our quality of life and our standard of living from
generation to generation. It’s about using the human and financial
resources of both the public and private sectors so that major
infrastructure projects are built effectively and efficiently, with a
minimum of taxpayer funding. That is, we want to maximize the effectiveness
of the taxpayer funding in projects of national economic significance for
Canada.
We are embarking on a journey that is not for the faint of heart. It will
require substantial political will and as much cooperation as we can muster.
It will require innovation, new approaches and new ways of thinking. It will
require not only the resources and expertise of the public sector but the
wealth and experience and knowledge accumulated by those in the private
sector. We must engage those who have designed and constructed some of the
most complex and successful transportation projects around the globe. We
must rethink our approach so that we can take advantage of public-private
partnerships, innovative financing and land value capture. It’s time not
just to think outside the box but to reinvent the box. This is our path to a
reduction in traffic congestion, improved air quality, better communities
and a stronger local and national economy.
Now, my friends, I’ve gone on almost as long as it seems this morning.
Let me conclude with former U.S. Senator Robert Kennedy was fond of saying,
"Some men see things as they are and ask why. I dream of things that
never were and ask why not." When it comes to improving transportation
infrastructure, it’s a question, it seems to me, we should all be asking
ourselves, and that question is, why not? We are not talking about a few
luxuries that could make life a little easier. We are talking about major
infrastructure investments that are long overdue and if neglected will have
devastating consequences for families, for our environment, for our economy
nationally. When it comes to being efficient, innovative and
forward-looking, the question again is, why not? Jurisdictions around the
world are light years ahead of us with respect to transportation
infrastructure, and there is no reason why we can’t catch up and
eventually surpass them. We have the knowledge and experience in Canada, we
have the financial tools in Canada, and now we have the political will in
Canada.
Finally, when it comes to working cooperatively in partnership with the
other levels of government, again I ask, why not? We all have a common goal
and it’s in the best interests of everyone to strive to achieve these
goals, to cut the commute, clear the air and drive the Canadian economy.
Thank you for welcoming me here this morning.
|