Services plead for money
Fare boxes run empty
OTTAWA – With fare boxes running empty, public transit systems across the country are looking for financial support, with some losing millions every week as they ferry essential workers to their jobs.
The Toronto Transit Commission released new numbers on Wednesday showing the system is missing $21 million in expected fare revenue every week, as most people stay home and avoid crowded buses or subways.
The commission has reduced services and let roughly 1,200 workers go, saving some money, but the net impact has the service out $16 million each week.
By Labour Day, the agency expects to be $414 million in deficit, even as it takes more steps to reduce costs.
The TTC is not alone. Several transit agencies across the country have laid off staff because of the drop in revenue. Edmonton and Calgary have each let hundreds of drivers go, and Ottawa, Montreal and Vancouver transit have reduced services to help reduce costs.
Transit agencies have also seen increased costs in some areas, with more cleaning and personal protective equipment for drivers. Cities, unlike provincial and federal governments, are not legally allowed to run deficits leaving them with little option as debts pile up.
Constitutionally, municipalities are the responsibility of provincial governments. Ontario Premier Doug Ford said Wednesday they will help, but they simply can’t afford to tackle this issue on their own.
“They are going to need our support. We are going to be there and we are going to be at the table,” he said. “We can’t do it alone. We need the federal government to support us, it is just too big of a ticket.”
Prior to the pandemic, the federal government had spent billions of dollars to support the expansion of transit systems with new rail projects in several cities, but it does not usually play a role in supporting day-to-day costs.
Prime Minister Justin Trudeau said the government is open to talking about the issue.
“We will be there to listen to concerns that Canadians are expressing and different orders of government are expressing on making sure that our reopening is successful,” he said.
“We know that public transit and getting people to work is going to be an important part of our economy moving forward.”
Trudeau said he knows social distancing rules and an emphasis on working from home has been devastating to transit systems and that his government would find ways to help.
“The federal government will be there to work with the provinces, including supporting them in their areas of jurisdiction in many cases.”
Marco D’Angelo, CEO of the Canadian Urban Transit Association, an industry group made up of transit systems from across the country, said the government needs to step up quickly so transit systems are ready to take people back to work when the crisis has passed.
“Transit is going to be at the centre of a post pandemic recovery,” he said. “Once you are trying to reopen a city and getting people moving back to jobs and work, if the transit is not there it is going to be difficult.”
He said even with people keen to physically distance when service comes back, transit is still going to be a big part of people’s commute.
“People are going to be taking different precautions, but I think people will return to transit.”
D’Angelo said transit agencies are going to look at the money they have budgeted for expansion projects and potentially pull it back to fund their day-to-day expenses.
The pandemic is unprecedented and that’s why it is in the national interest that transit keeps running
“By not being able to cover these operational funds, these cities are going to have to take money off the table for these big projects and we can’t have a decade ahead where we are not advancing mobility for Canadians.”
He said the federal government shouldn’t be covering the full costs for transit, but they have to be a major player.
He said he understands there were bigger issues on the table, but cities are going to need the money soon.
These are not ordinary times, and so the federal government needs to look beyond what it ordinarily funds, D’Angelo said.
“I understand the request is unprecedented, the pandemic is unprecedented and that’s why it is in the national interest that transit keeps running, and that is why it’s urgent,” D’Angelo said.