Nation’s big cities need a champion
CANADA VOTES
As another federal election campaign opens into full- blown battle, advocates of a “ new deal” for Canada’s major cities should take stock and prepare to press harder for real change. Much has been achieved in 2005. Money raised through the federal tax on gasoline is being shared with municipalities. Funds spent by communities to cover the Goods and Services Tax are now rebated by the federal government. And more money has been allocated to public transit. But the job of energizing Canada’s large urban centres remains far from finished. Cities are this country’s greatest economic and cultural asset. They are where most Canadians live; where most work; and where most new immigrants settle. Despite the importance of big cities, some, and especially Toronto, remain cash- starved and reduced to begging for funds.
Toronto’s roads and bridges are deteriorating faster than money can be found to fix them. The Toronto Transit Commission is struggling with a $66 million shortfall — and even then it cannot maintain existing services. City council has begun work on next year’s budget with its books showing Toronto is up to $500 million in the red. Despite all its recent gains, this city isn’t fully on its feet. More help is needed from Ottawa.
That’s why it is critical for all national parties to spell out clearly how they would handle the troubles that confront Toronto. Simply put, this city has no practical way to cover the cost of all the demands put upon it. Its costs and responsibilities are soaring, yet city hall raises money primarily through property tax, meaning it can only tax land, a rather limited resource. By contrast, both Ottawa and Queen’s Park gather the bulk of their money through income tax and consumption taxes, such as sales tax and GST. These income sources swell with the economy, keeping pace with the needs of society, unlike property tax revenue, which rises relatively slowly. To prosper, Toronto and Canada’s other large urban areas must be freed from their unhealthy dependence on property tax. They must be granted a share of income taxes or consumption taxes. Canada’s big- city mayors are calling for such dedicated revenues. Any federal party serious about pursuing an urban agenda should respond favourably to that request. While all of Canada’s big cities face challenges, Toronto is a special case. Thanks in part to years of hostility from the Conservative government of ex- premier Mike Harris, no other city has been so overlooked for so long. But change is coming. Premier Dalton McGuinty is to introduce this month a new City of Toronto Act giving the city unprecedented new rights, powers and responsibilities. For the first time, Toronto will be able to deal directly with Ottawa in negotiating programs and service delivery. To do that effectively, Toronto needs an understanding ear in Ottawa. The next federal government, regardless of which party holds power, must be willing to regard a newly empowered Toronto as a valuable partner and be willing to respect this city’s needs and react accordingly. The Liberals have responded fairly well this year, delivering a share of the federal gasoline tax and GST rebates. The party has pledged its continued support for a “ new deal” for Canada’s cities. The NDP also has a solid track record on urban affairs. Its modification of the Liberal budget last spring brought new transit money to Toronto. The Conservatives’ record is vague in comparison, but the party has stated an intention to “ stand up for our communities.”
Well before Election Day, all parties must offer detailed plans to assist Canada’s cities. Large urban centres sorely need a champion. That’s because few issues in this election have the potential to directly affect more Canadians than improving the cities where they live.