Latest news with #InfrastructureInstitute
National Observer
14-05-2025
- Automotive
- National Observer
Ford's car-friendly cuts will boost gridlock, drain transit funds, experts warn
Premier Doug Ford is selling car-friendly tax and fee cuts announced on Tuesday as a win for Ontario drivers — but experts warn the lost revenue could drain funding for public transit, shift costs to taxpayers and set back climate goals by encouraging more driving. Introducing his government's new legislation 'to help lower costs and fight gridlock,' Ford said the gas tax cut will save the average household around $115 annually, while removing tolls on the provincially-owned section of Highway 407 East starting in June could save some commuters more than $7,000 a year. 'It's frustrating to hear this kind of policy announcement, which we know is counterproductive,' said Albert Koehl, an environmental lawyer and author of Wheeling Through Toronto. 'Premier Ford talks a lot about reducing congestion, yet he continues to pursue the same failed policies of the past.' Koehl argues the province is undermining its own transit investments by making driving cheaper and more attractive, which evidence shows increases traffic. 'This is a government using public money against the public interest.' The cuts — first introduced in 2022 and set to expire in June — reduce the gasoline tax by 5.7 cents per litre and the diesel fuel tax by 5.3 cents per litre. Ontario has not had its own carbon-pricing plan since the Ford government scrapped cap-and-trade in 2018. The province currently falls under the federal carbon tax, which Prime Minister Mark Carney removed. That move, along with Ford's gas tax cut, further distances Ontario from any pricing on pollution. Koehl also raised concerns about the equity of the move, suggesting that the gas tax cuts and toll rollbacks disproportionately benefit drivers who are more likely to be higher-income. Meanwhile, those who rely on public transit — often lower-income residents — gain little from the changes. The province currently falls under the federal carbon tax, which Prime Minister Mark Carney removed. That move, along with Ford's gas tax cut, further distances Ontario from any pricing on pollution. Ontario's road transportation sector already accounts for 26 per cent of the province's emissions. Evidence from other countries supports experts' concerns about the consequences of cutting fuel taxes, which tend to increase driving. In Germany's 2022 experiment, the government lowered fuel taxes while introducing a discounted public transit pass. Although transit use increased, researchers found that the cheaper fuel led to a significant rise in driving — offsetting some of the environmental benefits. Similarly, a 2024 UK study found that fuel duty cuts primarily benefitted higher-income drivers and drained funds that could have been invested in public transit and sustainable infrastructure. Matti Siemiatycki, a University of Toronto professor and director of its Infrastructure Institute, says the policy will increase traffic and emissions while deepening Ontario's deficit. 'When you make driving cheaper, more people do it — and they drive farther,' Siemiatycki said. 'The short-term savings at the pump will be paid for in longer commutes, more congestion, and higher emissions.' Siemiatycki told Canada's National Observer the province is shifting costs from drivers onto all taxpayers. The eastern extension of Highway 407 is one example — its long-term capital and operating costs were once covered by tolls, but will now be paid by all Ontarians, he added. Although the government is investing in transit — particularly rapid transit — Siemiatycki pointed out that these projects take years to complete. In the meantime, the province has done little to fill the gap with cost-effective measures, like dedicated bus lanes or express services. Siemiatycki said the lost revenue from tolls and fuel taxes will still need to be made up elsewhere. Ultimately, he argued, the province's financial obligations won't disappear, so with the province already running a deficit, the shortfall will likely be covered through general taxation or cuts. Ontario Green Party Leader Mike Schreiner also questioned the province's transportation priorities, suggesting that if the government truly wanted to reduce congestion, it should focus on subsidizing truck tolls on Highway 407 to shift freight traffic off the overcrowded 401. 'The problem with cutting the gas tax is that it takes money away from funding transit operations in communities across the province,' Schreiner said. 'That makes it harder to provide affordable and reliable public transit. At a time when people are facing real affordability challenges, it would be far more helpful to invest in accessible, affordable transit options.' But doing that requires provincial investment in transit operating costs — removing gas tax revenue makes it harder to do that, he added. Schreiner said the Ford government's pattern of investment reveals a clear preference for cars over people. 'They continue to invest in highways and driving infrastructure, while neglecting more affordable, healthy, and sustainable options like public transit and bike lanes,' he said. When it comes to sustainable solutions, Tim Gray, executive director of Environmental Defence, said the province should prioritize expanding public transit, especially within and between cities in the Greater Golden Horseshoe region of southern Ontario. 'We should be prioritizing buses in urban spaces, like creating dedicated bus lanes,' Gray said. 'The provincial government should be supporting public transit operations, as well as the construction of new lines.' The government should be supporting housing construction within cities, instead of pushing development onto distant farmland, he added.
CBC
29-01-2025
- Business
- CBC
Congestion already costs Toronto drivers time and money. Here's how tolls could help
There are no plans for congestion pricing or tolls in Toronto. The current Ontario government has made it clear it won't allow a tax or new toll on any road in the province — and the city isn't exploring the strategy, either. But if Toronto is serious about solving the congestion crisis — which costs the Greater Toronto and Hamilton Area (GTHA) more than $44 billion a year in economic and social value — some experts say time-dependent road charges are an inevitable piece of the puzzle. "Demand keeps increasing, but space for building infrastructure does not," said Baher Abdulhai, an engineering professor at the University of Toronto who specializes in intelligent transportation systems. "Congestion pricing is a way to ration demand." The final part of CBC Toronto's three-part series Gridlocked: The Way Out explores why congestion pricing and tolls are so deeply unpopular in Ontario, despite helping ease traffic in other major cities. And drivers may already be paying for congestion one way or another. "They're paying for it in their time," said Matti Siemiatycki, director of the Infrastructure Institute at the University of Toronto. "They're paying for it in frustration, and they're paying for it because all of the goods and services that we all consume cost more here because of how long it's taking to get around and for those goods to be delivered." Siemiatycki believes part of the reason Ontario drivers are against congestion pricing is this mindset: I already pay for infrastructure — like roads — through my taxes, so don't charge me again. WATCH | Why some experts say congesting pricing is inevitable: Because of that — and because people view charges as punishments — it makes it difficult for people to overcome these hurdles, according to psychologist Taryn Grieder. "If it's presented like it'll benefit them in some way, then it may be viewed as less of a punishment, but that would be hard to do," she said. So how has congestion pricing worked out elsewhere? London mayor re-elected after congestion pricing Mark Watts was senior transport adviser to then-London mayor Ken Livingstone when he introduced a congestion charge in the city's centre in 2003. Livingstone was re-elected in 2004. "The week before the congestion price came in, more people were opposed to it than supported it," said Watts. "Two weeks after it had been introduced, massively flipped — two-thirds of people thought it was a good idea." The reason? Watts says it worked. It reduced congestion by 30 per cent in the core, he said, and within a few years led to a nearly 40 per cent increase in bus passengers because of investments the city had made in the bus system ahead of time. "Critically, we'd spent three years investing in the alternatives," said Watts, who is now executive director of C-40 Cities Climate Leadership Group, a global network of mayors working to cut emissions. "What the congestion charge itself did was make those bus services work, because before ... it was a poor choice to use a bus. You only used it if you had to because it was so unreliable." Need for attractive public transit The availability of reliable public transit is one big difference between Toronto and cities like London, Stockholm and Singapore, which have seen success with congestion pricing they've had in place for years. "It's very hard to charge people to drive their cars if they don't have an option," said Giles Gherson, president of the Toronto Region Board of Trade. "You probably won't be able to do it until at least the Ontario Line is built." Until then, there are other short-term solutions to help alleviate congestion, he says. CBC Toronto explored those in the second part of this series. Earlier this month, New York became the first North American city to implement congestion pricing for vehicles entering Manhattan's central business district. It costs most drivers $9 US to enter the area during peak hours — fees that will be put toward upgrading public transit. Travel times were down 7.5 per cent compared to the same time last year, according to preliminary data on the first week of the program from the Metropolitan Transportation Authority. Province would have to sign off on congestion pricing Toronto city council tried to toll the Gardiner Expressway and Don Valley Parkway in late 2016. But Kathleen Wynne, then-Ontario's premier, refused to approve the plan, citing a lack of transit alternatives. More recently, city council considered the possibility of a congestion charge in 2023. But it decided not to pursue it, partially because it would require provincial approval. Asked whether Toronto might revisit the idea once better transit and construction management is in place, its traffic management director said that as an engineer he never rules out anything. "If and when that time comes, we'll definitely take a look at it again to see if it makes sense," said Roger Browne. In a statement, the office of Ontario's transportation minister made it clear that this provincial government would never approve congestion pricing. "We remain focused on building the critical infrastructure we need, including nearly $100 billion for new roads and transit to get people where they need to go each and every day," said spokesperson Dakota Brasier. Despite having no plans for congestion pricing anytime soon, Watts said Toronto shouldn't be afraid of the idea.
