The Ontario Minister of Finance wrote a letter to the Canadian Minister of Finance requesting a meeting to discuss increasing federal funding for transportation infrastructure projects in the Greater Toronto and Hamilton Area (GTHA). The Ontario minister emphasized the economic, social, and environmental benefits of investing in public transit. While Ontario has found funding efficiencies, more revenue is needed to fund the $50 billion in transit projects proposed by Metrolinx. The minister hopes to partner with the federal government to address the "critical need" for transit investment and reduce gridlock in the GTHA.
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Letter to minister flaherty june 2 2013
1. Ministry of Finance
Office of the Minister
Minist┬re des Finances
Bureau du ministre
7th
Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Telephone: 416-325-0400
Facsimile: 416-327-0374
7e
└tage, ?difice Frost Sud
7 Queen's Park Crescent
Toronto ON M7A 1Y7
T└l└phone: 416-325-0400
T└l└copieur: 416-327-0374
´/cont¨d
June 2, 2013
James M. Flaherty
Minister of Finance
21st Floor, East Tower
L¨Esplanade Laurier
140 O¨Connor Street
Ottawa, Ontario
K1A 1G2
Dear Minister Flaherty:
I am writing to respond to your letter dated May 30, 2013, wherein you express your views on
funding transit and transportation infrastructure in the Greater Toronto and Hamilton Area
(^GTHA ̄).
I am also writing to request a meeting with you on this critical issue as soon as possible.
As you are well aware, the province has not asked the federal government for any changes to
the Harmonized Sales Tax.
However, since 2010, we have repeatedly requested that the federal government invest in a
national transit strategy C with dedicated infrastructure dollars for the building of more transit.
This is not only an economic, social and environmental imperative, it is also an urgent
obligation of national importance.
Moreover, given the Harper government¨s commitment to job creation through Canada¨s
Economic Action Plan, your government would be a natural partner in the creation of an
estimated 987,700 person years of employment over the next 20 years through Metrolinx¨s
$50 billion Big Move projects. As well, it is worth nothing that the environmental impact of
building more transit would improve the health and well-being of people, and eliminate
millions of unnecessary car trips. Unfortunately, your government¨s current investment in
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´/cont¨d
transit through the Building Canada Fund provides only four percent of the necessary funding
needed to address the transit and transportation deficit in the GTHA.
Congestion is also a significant challenge for businesses. The Toronto Region Board of Trade
states that all levels of government must be involved, including a more prominent role by the
federal government. As Carol Wilding, the President and Chief Executive Officer of the
Toronto Region Board of Trade has said, ^Congestion comes with a $6 billion annual
economic cost to the Greater Toronto Area, and it is crucial that the federal government is
part of the solution. ̄ Alan O¨Dette, President and Chief Executive Officer of the Ontario
Chamber of Commerce adds ^Business understands that the status quo is no longer an option
and that the case for better transportation is overwhelming. The question is no longer 'if' but
'how' to fund new infrastructure in the GTHA. People around the province recognize that
moving goods and services through the GTHA has an economic impact on all of our
communities. If you have goods in a truck sitting on a highway somewhere that¨s costing you
taxes, that¨s costing you labour. ̄
Furthermore, finding efficiencies within government is ongoing and it is why we have
consistently outperformed our fiscal targets. As stated in Ontario¨s 2013 Budget, Ontario
currently has the lowest program spending per capita among Canadian provinces. These
measures will continue, but it must not preclude us from finding adequate revenues to fund
these historic transit investments.
The Metrolinx Investment Strategy is a comprehensive report with recommendations made to
our government for consideration. Over the coming months, we will carefully evaluate their
funding recommendations, and engage with affected municipalities and the people before we
come up with a final plan to address the critical need for investment in transit infrastructure in
the GTHA.
We are committed to reducing gridlock and Metrolinx¨s Big Move is an important part of
achieving that goal. Investments in public transit infrastructure will help manage congestion,
support economic growth, create jobs and contribute to improving the everyday lives of the
people residing in our province.
As the Minister responsible for the Greater Toronto Region, I hope you agree that a dedicated
source of funding by your government is an economic and health imperative and would be
one of your utmost priorities, similar to that of other projects already made by your
government in other parts of Canada.
This is a shared priority and we need you and your government to work with us, as well as
contribute more funding to these critical investments for the benefit of Ontario¨s and
Canada¨s future competitiveness.
3. I look forward to meeting with you on this subject to discuss the federal government¨s
recognition of ^the need to invest in critical transportation infrastructure ̄ and partnership to
help resolve ^transit and transportation challenges facing commuters. ̄
Sincerely,
Charles Sousa
Minister
c: The Honourable Kathleen O. Wynne, Premier
The Honourable Glen R. Murray, Minister of Transportation and Infrastructure