Promises for transit, infrastructure,
OTTAWA— The road to the next federal election is paved with promises of transit and infrastructure money.
The message is that money is there but it is all contingent on the Conservative government getting re-elected later this year.
Finance Minister Joe Oliver’s budget promises a Public Transit Fund of $750 million over two years starting 2017-18, increasing to $1 billion per year by 2019. But details are slim, including how much Toronto can expect.
“Anyone who lives in or or near our thriving and fast-growing cities knows the reality of traffic gridlock,” Oliver said in his maiden budget speech.
“This fund will result in more money for more transit projects by requiring a significant role for the private sector and by allowing for a more flexible payment approach,” he said.
The budget promises to continue to provide $5.35 billion per year on average for provincial, territorial and municipal infrastructure under the New Building Canada Plan.
Both the Province of Ontario and the city of Toronto were looking for a serious infusion of cash from the feds for transit to continue with their am- bitious multi-billion plans to improve gridlock.
Toronto alone could eat up every cent in federal transit money for years to come.
Oliver told reporters he knows it’s frustrating for motorists who have to deal with gridlock, but emphasized the money will be there when provinces and municipalities need it.
“In respect to the timing of this transit fund, it will be ready when it is needed. These are billion- dollar projects and when they are ready . . . the money will be ready,” he said.
The federal government, however, is looking at using the $1 billion annually when it gets there to finance transit in a different way, a government official told the Star.
Rather than traditionally contributing one-third toward a transit project, Ottawa says the province or territory would cover off the federal portion and in return the feds would pay the interest and principal on that loan over 20 or 30 years. Federal officials says approaching it from that way means it can fund many different projects right across the country.
As for Toronto, the budget sets aside $25 million for the Harbourfront Centre, a not-for-profit organization that delivers arts, culture and recreation programming.
There is a general promise to promote Canadian tourism, but a government official said details are to come later this year.
“This targeted campaign is expected to attract a large number of American visitors to destinations across the country, helping to promote economic and job creation in the tourism sector,” the budget says.