Tuesday, March 20, 2012

LRT means respect for the taxpayers

Karen Stintz, Toronto City Councillor and Toronto Transit Commission Chair, Opinion, The Toronto Sun:

Toronto - For the first time in 25 years Toronto’s transit network is being expanded.

The rate of investment from the Provincial and Federal levels of government has been remarkable. Currently under construction is a subway extension to York region, light-rapid transit on Eglinton Avenue and Finch Avenue and the replacement of the Scarborough RT. These investments will transform our city and begin to address the serious issues of congestion and accessibility without raising our taxes.

So why all the recent fuss?

Toronto relies on many forms of transit to successfully serve people: subways, light-rail, streetcars and buses. Mayor Ford would like to shift resources from light-rail technology expansion to subway expansion specifically on extending the Sheppard subway from Don Mills to the Scarborough Town Centre, a seven kilometre project which would cost at least $3 billion.

Although the Mayor promised this project to Scarborough he simply cannot deliver on that promise without a taxation formula to pay for the $2 billion shortfall. Public-private partnerships (P3) require the government to repay the private sector the money that it invested. If city council wants to extend the Sheppard subway, they must approve new taxes, either through property tax increases or by imposing a new tax.

Even the Mayor’s chosen point person on subway construction, Dr. Gordon Chong, recommends the city should raise taxes to pay for the extension of the subway to Scarborough Town Centre. His report, based on KPMG’s recommendations, summarizes the various taxes that city council could implement to raise money to pay for the Sheppard Subway extension. The taxes openly mentioned include re-instating the vehicle registration tax, a parking tax, a tax on the sale of alcohol and a property tax increase.

Other taxes, such an increase to the harmonized sales tax, would require approval from the Province.

Implementation of these new taxes would be required to build seven kilometres of subway but the Mayor has repeatedly stated that he will not support new taxes. This leaves city council with a choice to build 2.7 kilometres of subway or 13 kilometres of light-rapid transit. Light-rapid transit is a preferred transportation option for areas which require greater capacity and higher quality transit than bus service but do not have enough ridership for a subway to make economic sense.


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