Groundbreaking Economic Study Outlines Need For Federal Transit Investment - Media Release
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Groundbreaking Economic Study Outlines Need for Federal Transit Investment
Transit Calls on Party Leaders to Pledge Funding During Election

September 16, 2008 (Ottawa) – Transit leaders from across Canada today called on federal party leaders to pledge increased funding for transit during the current federal election campaign.

The call to action was supported by the release of a groundbreaking economic study that analyzed the optimal supply and demand for urban transit in Canada. “This economic study highlights the need for greater investment in transit,” said Michael Roschlau, CUTA President and CEP. “The study demonstrates that Canada is clearly underinvested in urban transit.”

The study conducted by HDR Decision Economics Inc. had several important conclusions:
• The economically and socially optimal level of transit supply in 2006 would have required an estimated 1.7 billion vehicle-kilometres of transit service, or 74 percent more service than actually supplied.
• In 2006, capital investment of $78.1 billion would have been required to bring the supply of transit into line with the optimal conditions of supply in that year.
• Results of the analysis conclude that Canada is clearly underinvested in urban transit.
• Bringing transit to the optimal level of supply would produce several positive economic and social benefits – more than two thirds of these benefits constitute the economic value of reduced roadway congestion.

The economic study release comes on the heels of public opinion data that demonstrates a surge in public support for transit in the wake of rising gasoline prices.

The poll, conducted by The Strategic Counsel, was released two weeks ago by the Federation of Canadian Municipalities (FCM) and CUTA. Major findings from the nationwide poll of urban Canadians demonstrate that 40 percent of respondents believe that rising gas prices have already or will push them to consider using public transit. This survey response suggests that transit ridership could triple as a result of higher gas prices.

“Transit providers welcome new riders, but without new funding, this kind of increased demand would overwhelm transit systems, many of which are already at or beyond capacity during peak hours,” explained Steve New, CUTA Chair. “Even in some smaller systems that have spare capacity, there are renewal and replacement needs that resulted from the lack of funding over the last twenty years.”

The ability to respond to a surge in ridership resulting from higher gas prices will require major investments in additional service. The FCM and CUTA say the federal government must put more money into these systems. Over the next five years, CUTA is expecting the country’s transit systems will require $40-billion to meet the demands and expand public transportation.

“The fact that such a strong segment of consumers are ready to make the switch to public transit with rising gas prices means the obvious issue for federal leaders is how to invest now to meet public demand,” concluded Roschlau.

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CUTA is the national association representing public transit systems, suppliers to the industry, government agencies, individuals and related organizations in Canada.

For further information, please contact: Maureen Shuell, CUTA Director of Communications (416) 898-5600 (cell) (416) 365-9800 ext. 105 (office) www.cutaactu.ca