October 24, 2011
A Blueprint for a National Transit Framework
Efficient public transit is crucial to the success of large city regions.
And successful large city regions are lynchpins of a vibrant national economy in a globalized world. These facts are widely accepted. Most countries have adjusted their public policies accordingly.
Canada’s large cities, however, suffer from a lack of public transit infrastructure when compared to their international peers. The reason is threefold. First, Canadian municipalities do not have the revenues to expand and maintain their transit systems. Second, there has historically been insufficient financial support from other levels of government, particularly from the federal government. And finally, progress is hampered by poor governance and intergovernmental coordination.
Canada is the only G7 economy that does not provide predictable, dedicated funding for municipal transit systems. This paper joins the chorus calling for a national policy framework for public transit. However, it also poses a few simple questions: What are the parameters of a national transit framework? How should federal transit funding be allocated?
The paper examines the implications of a sustained federal investment for decision-making and governance. How do we ensure that projects can be identified, planned, funded, and implemented without undue delay arising from too many levels of government and veto points?
Executive Summary
Canada’s big city mayors are calling for greater federal investment in public transit. A number of prominent organizations, such as the Canadian Chamber of Commerce, the Canadian Urban Transit Association, and the Toronto Board of Trade, are lobbying for a National Transit Strategy and a more deliberate role for the federal government in our municipal transit systems. There are hints that the federal government is receptive.
However, federal involvement in public transit needs to be structured in a way that maximizes the public’s investment. It would be a shame, for example, if the federal government equalizes its investment, spreading it thinly across the country in order to avoid offending anyone.
Instead, federal investment in transit needs to be focused on where it would do the most good—namely the city regions of Toronto, Montreal, and Vancouver.
The case for federal involvement is strong. The positive impact of transit is widely recognized, which is why all central governments in the G7 but Canada have some form of predictable and dedicated funding for transit. In Canada, Ontario, BC, and Quebec are the single largest investors in transit capital.
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All indicators are that the federal government recognizes the importance of efficient transit to our economy and environment. But it currently contributes less than 11 per cent of transit funding, through a patchwork of different funds with different eligibility rules and reporting mechanisms. The funds are also largely dispersed on a per capita or merit—sometimes derided as lottery—basis. Federal transit investment needs to be more strategic.
It needs to be targeted, predictable, and transparent. It also needs to minimize the administrative burdens of the recipients by taking advantage of the strong accountability mechanisms already in place at the provincial level.
Funding is one problem. Governance is another. What are the implications of a sustained federal investment for decision making and governance? How do we ensure that projects can be identified, planned, funded, and implemented without undue delay arising from too many levels of government involved in decision making?
There are already too many actors involved in transit governance. The transit sector is rife with blame-avoidance, credit-taking, and intergovernmental tension.
Transit governance in this country needs be rationalized. Local transit authorities should be uploaded to regional transport agencies. And, all funding, including federal, needs to be directed at this regional level.
Efficient public transit is crucial to the success of large city regions. And successful large city regions are lynchpins of a vibrant economy in a globalized world. These facts are widely accepted. Most countries have adjusted their public policies accordingly. Canada, however, is a laggard. Put simply, a well-designed national strategy and targeted strategy will generate more value and go further.
Authors
Kelly Hinton
Michael Szala
Josh Hjartarson
Release Date
October 24, 2011
ISBN
978-1-927350-07-2
Mowat Publication
No. 37