Go Fare Hike (3/12/04)
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The issue of rising fares shows how different the TTC and GO Transit are. Any threat of price hikes for TTC tokens and Metropasses raises concerns about lost ridership and the effect on riders with fixed incomes. On the other hand, GO users expect to pay more every spring. The transit agency’s board will today look at a flat 15 cent increase to all fares, as well as a report on charging commuters to use the system’s 40,000 parking spaces.

Transit staff looked at the parking charge idea as a way of raising revenue, but concluded it would turn off too many riders, and the board looks unlikely to support the plan. The fare hike is another story.

Provincial transportation minister Harinder Takhar has the final say on GO prices, and his spokesperson Danna O’Brien told In Transit on Wednesday, “We’d like to encourage the GO board to look at other options.” GO, like the TTC, relies on riders to pay over 80% of the cost to run the system.

 Managing director Gary McNeil tells In Transit that if GO does not increase fares, “We will have to ‘find’ an additional $6 million somewhere else -- either through service cutbacks, not implementing new or improved services, or the province increasing our subsidy.” The transit agency is eager to get moving on planned improvements to its network, and while new tracks and trains are not paid for from fares, increased service is.

 Unlike its local counterparts across the GTA, the regional transit authority won’t lose customers from a fare hike -- in fact, ridership is expected to rise 5.4% next year. According to McNeil, “People do not want to pay (higher fares), but ... they realize that GO is still a bargain compared to driving.”

 Commuters contemplating their travel options may also take into account the prospect of surging gasoline prices this spring. Bulging trains are an indication of the strong demand for GO’s services -- and how easy it will be to attract new customers if planned expansions actually get built.

 Currently, the lowest fare is $3.00, and it costs $8.30 for a trip from Hamilton to Union Station. The average ride is $5.30, which is the equivalent of travelling from Oakville to downtown Toronto. If fares rise a flat 15 cents, those going shorter distances will see a relatively higher increase -- around 5 per cent. That compares to less than 2 per cent for long-haul commuters. Should prices increase proportionately?

 Until 1995, GO raised fares by a percentage, reports Mr. McNeil.  Back then, “the longer distance fares had the largest increase, and there was more of a ridership loss in this category. Even worse, the loss of long distance riders had a greater impact on our operating subsidy, as they generate the most revenue. GO is primarily a long distance transportation service provider -- our average customer travels 32 kilometers.”

 Relatively few GO patrons board at stations within the City of Toronto, and local commuters do not usually consider GO an option. Yet in the central area of many European cities, riders pay the same price to use local transit as commuter rail. In Montreal, local transit fares are allowed on a limited portion of the regional train network, giving riders a speedy, if less frequent option.

 Toronto Mayor David Miller does not sit on the GO board, but transportation minister Takhar is reportedly set to appoint new members. Miller believes his city should better represented, adding that the mayor of Toronto or “his designate” should have a direct say in GO affairs. He says, “GO, like the TTC, faces a funding challenge. I think it’s got a range of unpalatable choices before it. One thing I think it should look at is -- particularly in places like Scarborough -- is there an opportunity for people in Toronto to perhaps pay a little less?”

 

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© Ed Drass 2008