Commission on the Reform of Ontario's Public Services

Chapter 12: Infrastructure, Real Estate and Electricity
Unfortunately, initiatives on this scale are still not significant enough to overcome the problem
at hand. Honest discussions between citizens, government and key stakeholders must begin
at once on alternative revenue measures that could address a much more significant portion of
the gap in funding needed to implement an ambitious transit plan.
The first is to redouble efforts to negotiate with the federal government on developing a
national transit strategy. Despite Canada’s enormous geographical size, it is a largely urban
nation. Eighty per cent of Canadians live in urban centres, making Canada one of the world’s
most urbanized countries. Traffic congestion is a systemic issue from coast to coast, justifying
a national approach. Indeed, the federal government is affected by gridlock as much as any
province through lost productivity and tax revenue; in 2006, Transport Canada noted that
congestion poses a national challenge in terms of its costs in lost time, increased fuel
consumption, and increased greenhouse-gas emissions. 11 And despite Canada’s urban
nature, the Canadian Chamber of Commerce has noted that Canada is the sole member
nation of the Organization for Economic Co-operation and Development (OECD) that lacks a
national transit strategy. 12
Recommendation 12-5: Pursue a national transit strategy with the federal government,
other provinces and municipalities.
Federal funding is just one part of the equation — ultimately, Ontario will determine how best
to fund its future needs for transportation infrastructure. While general tax revenues will also
be a certain source of funds in the foreseeable future, jurisdictions elsewhere are looking at
alternatives: congestion charges, comprehensive road tolling, high-occupancy/toll (HOT)
lanes, regional gas taxes and parking surcharges. Each produces various incentives that
require thoughtful analysis and consideration. However, without clear input from citizens,
striking the right balance of these measures will be near impossible.
Recommendation 12-6: Engage citizens in an open, public dialogue on how best to create
new revenue sources for future transportation capital needs.
11 Transport Canada — Environmental Affairs, “The Cost of Urban Congestion in Canada,” Mar. 22, 2006, downloaded from
http://www.gatewaycouncil.ca/downloads2/Cost_of_Congestion_TC.pdf.
12 Canadian Chamber of Commerce, “Strengthening Canada’s Urban Public Transit System,” downloaded from
http://www.chamber.ca/images/uploads/Resolutions/2009/T-Strengthening_Canada.pdf.
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