In 2004, Canada ended its dubious distinction as the only developed country whose national government did not help fund transit systems. After a decade of chronic underfunding, the federal Liberals joined Ontario and Toronto in announcing a billion dollars to renew the TTC.

 While it’s not clear how much of the promised funds have been received, the recent Liberal minority government under Prime Minister Paul Martin did implement its “New Deal” that is diverting federal gas tax to transit.

 Now at about one and a half cents per litre sold across Canada, this ongoing fund will rise to five cents by 2009. By then, around $2 billion yearly will flow to municipalities for “environmentally sustainable infrastructure” including transit systems.

 In a deal with the NDP that kept it in power through autumn 2005, Martin’s government agreed to an additional $800 million over two years, much of which goes to transit. The Conservatives under Stephen Harper opposed the budget that contained these extra funds.

 The official party website www.liberal.ca states Ottawa invested a total of “$1.4 billion in public transit systems since 2003 through the Canada Strategic Infrastructure Fund.”

 Yesterday the Conservatives released their transportation platform, promising to continue existing gas tax and infrastructure programs. Harper’s party also proposes to remove the restriction that directs gas tax funds to municipal transit systems -- but not roads. This could mean some cities, including those in the GTA, might reduce money aimed at transit.

 Presumably the Liberals would maintain the restriction, and yesterday’s release of the party’s election platform did not appear to contain new details on transit. Perhaps more information will be available this morning at a press conference of the Canadian Urban Transit Association. CUTA has asked all parties to describe how they would cover more than $20 billion in unfunded improvements that Canadian transit agencies will need over four years.

 Liberal leader Paul Martin did however respond to a questionnaire from the country’s premiers, which asked Ottawa to take part in “a national transportation strategy” with the provinces. He pointed to existing programs, and would only commit that “My government is now in the process of developing a national gateways and corridors strategy.”

 One of CUTA’s questions focuses on allowing a tax exemption for employer-provided transit benefits. Many companies now provide free parking, and under this plan they would get a tax break by providing transit passes. The NDP’s Jack Layton has said his party supports this, but successive Liberal finance ministers have resisted.

 A Bloc Québecois’ Parliamentary bill on the issue died when the minority government fell. The Conservatives have promised a different kind of measure, which would give individuals a tax credit for transit fares. In response, the Liberals stress that the cost in tax revenue would be better spent on providing bus and train service.

 The Liberal website states, “Funding a tax credit does not create new public transit systems; expand or increase capacity in Canada's existing transit systems; make public transit more accessible or affordable; significantly increase ridership; or measurably reduce green house gas emissions.”

© Ed Drass 2008