Thank you, Mr. Chairman.
A solid urban transportation network is vitally important for quality of life, for economic development and for a healthy environment, all of which are of great concern to Canadians.
More and more Canadians are recognizing that an investment in a safe and efficient public transportation system means an investment in our economy and our future prosperity.
Highlights of a 2006 Ipsos Reid poll conducted for CUTA are contained in our written submission, which you may wish to review at a later time. However, I will point out now that according to the results, it is evident that many Canadians are concerned that governments are not striking the right balance to meet their communities' transit infrastructure needs.
It is clear that you as a committee have selected several questions related to the balance of taxation and support of various types of public good provided by countries. CUTA would like to directly address this area of study as it relates to public transit.
It is worth noting that Canada is the only G8 country without a federal policy for predictable, long-term transit investment. This situation prevents Canadian transit systems from achieving their full potential, and it must be addressed.
As finance committee members, you are no doubt aware that a new national transit strategy has been proposed by the Big City Mayors Caucus of the Federation of Canadian Municipalities. Together with FCM, CUTA is urging its implementation by the federal government. Implementing a strategy such as this will be beneficial to all Canadians. It will provide an opportunity to maintain, renew, and expand transit services across Canada; it will provide federal tax incentives for individuals who choose transit; and it will ensure that transit operations are more effective and efficient, among other things.
I cannot reiterate enough just how urgently new investment is needed. Canadian transit ridership grew by more than 10% in the first half of this decade. Many transit systems are serving more riders than ever, while also facing the need to rehabilitate and replace aging infrastructure. Communities nationwide are counting on revitalizing expanded transit systems to help tackle major challenges such as climate change, air pollution, escalating congestion, and the needs of a growing and aging population.
The public transit industry is supportive of federal programs that fund local infrastructure, such as the gas tax fund, and the building Canada fund; however, more investment is needed.
Initiatives like the recently-passed public transit fund and the public transit capital trust provide valuable assistance, but they do not guarantee long-term financial certainty.
Canada's transit systems need stronger leadership from the federal government in order to build an effective long-term transit plan.
In order to entice more and more Canadians to use public transit, it is important to offer more incentives for transit users. Through policy and taxation the federal government can provide incentives that make transit a more attractive choice for Canadians. CUTA supports the new personal income tax credit for transit passes, but much more can be done.
One example that CUTA and its partners, including FCM, have pursued for more than a decade is tax-exempt status for employer-provided transit benefits. In Canada, public transit accounts for approximately 11% of work-related travel. CUTA is again calling on the government to support tax law changes to allow this initiative as a non-taxable benefit.
On behalf of CUTA's members, I would like to thank the committee for today's opportunity.