Thank you, Mr. Chair.
Bonjour tout le monde. I am David Flewelling, president of the Canadian Automobile Association. We represent nine regional associations, with a total of 4.9 million members from coast to coast.
We have addressed this committee before from the viewpoint of traffic safety and the deterioration of our transportation infrastructure. My remarks today will focus on Canada's competitiveness from two perspectives: congestion and delays on our roads and highways, and the need for a healthier environment.
Canada's road network is the key element in sustaining our productivity levels and ensuring our ability to compete globally and in enhancing our standard of living, yet we are facing a $22 billion maintenance deficit in our national highway system.
The by-product of this deficit is a combination of ever-increasing congestion for international and domestic trade, for tourists, and commuters.
In 2005, according to Transport Canada, six congested border points accounted for more than 70% of cross-border truck movements. A 2005 binational study indicated that in 15 years delays at the border will likely cost Canada over $450 million a year in productivity losses related to tourism.
Tourism is a billion-dollar industry, yet recent figures indicate that Canada has slipped to eleventh from seventh as an international tourist destination. The continuing deterioration of our roads and highways only exacerbates this decline.
In 2005, commuters in Canada on average spent 63 minutes each day on the round trip between their place of residence and their place of work. This means the average Canadian today is spending 17% more time each day in commuting, the equivalent of one extra work week every year, than was the case 13 years ago. These delays cost Canadians and damage our productivity. The phenomenon of job growth in the suburbs, combined with increased levels of domestic and international commercial traffic, will exacerbate losses in productivity due to congestion. The benefits of just-in-time delivery, in which products are shipped directly to markets rather than warehoused, will be jeopardized if goods are stuck in traffic.
Projections foresee a continued increase in the number of vehicles in operation in Canada in the decades ahead, both for personal and commercial use. Delays in trade traffic, for tourists and in commuting, all negatively affect productivity.
There is much talk these days about creating a fiscal balance, and the CAA takes the view that federal investments in national strategic assets such as transportation infrastructure are key. Federal leadership should protect the national interest and reflect tax revenues generated from federal excise taxes on motor fuels, which remain the most logical source for funding our national highway system.
CAA calls on the federal government to do the following: one, develop a national highway policy in conjunction with the provinces; and two, support this policy with sustainable long-term funding, using 50% of the fuel excise taxes.
While addressing delays is crucial to Canada's competitiveness, this must be done while maintaining a healthy environment.
To that end, CAA has partnered with Pollution Probe to develop an eco-mobility plan that incorporates motorists, roads, and vehicles. The plan will consist of the following three parts: one, eco-driving, or the development and support of programs that lead to fuel conservation through smarter vehicle driving and maintenance practices as well as the use of other energy-efficient transportation options; two, better and safer roads, investment in road infrastructure that leads to safer driving conditions. Better highway design and the use of advanced traffic management systems can make roads safer and reduce congestion--all of which help motorists to conserve fuel.
A third point relates to improving vehicle fuel efficiency. We believe there is a need to develop and implement effective fuel efficiency standards for vehicles sold in Canada. We are also in favour of supporting the development of automotive and fuel technologies that will ultimately lead to reduced greenhouse gas emissions from the light-duty vehicle fleet in Canada.
Since the global demand for fuel-efficient automotive products is growing, demand for fuel efficiency in Canada will support the competitiveness of our vehicle industry. As this committee will be recommending to the Minister of Finance what should be in the budget, from CAA's perspective it is imperative that the minister provide economic leadership on the environment file and set the tone for other federal departments to be both bold and pragmatic. Our three objectives are in line with that challenge.
In conclusion, it is clear that investment in Canada's roads and highways and in a healthier environment will ensure that Canada's place in the competitive world is maintained and grows.
CAA's recommendations are balanced and fiscally responsible, and I am confident they will contribute to this objective.
I look forward to answering any questions you might have.
Thank you.