Thank you very much, Mr. Chair.
Honourable members of the committee, we are extremely grateful for the opportunity to appear before you today.
The Canadian Urban Transit Association, or CUTA, is the collective voice of Canada's public transit and integrated mobility sector.
I'd like to begin by highlighting that over the last decade, all orders of government have recognized the importance of public transit by increasing their investment in this strategic sector. Since 2006 the federal government alone has invested nearly $8 billion in transit infrastructure across the country, particularly through the Building Canada plan. It's no secret, however, that no single government can sustain the cost of building major transit projects single-handedly.
The federal government can certainly appreciate this dilemma, having, itself, recently looked at innovative tools to help pay for infrastructure projects, such as public-private partnership as an alternative funding mechanism.
The industry is open to alternative funding sources such as P3s, but the current procurement model restricts the federal government to a maximum of 25% share of the cost in a P3. This often leaves municipalities and provinces with a more substantial share of the initial capital investment up front. As the federal government prepares its next budget, it should consider raising its maximum share of P3 projects from 25% to 33%, especially in cases where no private partners are providing initial capital investments.
On another note, building public transit is one of the best solutions for our communities to grow and prosper. Transit plays an important role in reducing traffic congestion, which costs Canada over $10 billion in lost productivity every year. It's estimated that Canadians spend on average 32 working days a year commuting back and forth to and from work.
To respond effectively to these challenges transit projects require a predictable and stable investment. As it stands, the transit industry still faces a $3-billion annual funding gap to meet the needs of infrastructure expansion and renewal. CUTA recommends that the federal government work with its provincial and municipal counterparts to increase the ratio of infrastructure funding going to transit projects.
By investing in transit infrastructure, we can maximize job creation in communities across the country. The Canadian transit industry employs 75,000 people and creates thousands more in spinoff jobs. In addition, many of the manufacturers, consultants, and suppliers at the core of the industry have developed their expertise here in Canada and export a substantial share of their production. Despite difficult economic times, they've continued to sustain a long legacy of public transit innovation, which has helped them increase their share of the North American transit market.
In order to maintain our competitive advantage, the federal government can partner directly with the Canadian Urban Transit Research & Innovation Consortium, a new not-for-profit organization dedicated to bringing industry and academia together to increase technological development in Canadian transit.
Before concluding, I'd like to be clear on one more point: buy America. Now more than ever, the threat of protectionist measures being debated in the United States regarding buy America procurement rules is real. That could raise U.S. transit content from 60% to 100%, putting hundreds, if not thousands, of Canadian jobs at risk if transit manufacturers are forced to shift their production to the U.S. We will continue to work with the Government of Canada to come up with solutions to help protect the high-value jobs in the Canadian transit industry and address these concerns with our U.S. counterparts.
In conclusion, public transit investments grow our economy, create jobs, fund made-in-Canada technological innovations and provide sustainable transit solutions to communities of all sizes.
We commend the Government of Canada for its support and wish to extend our full cooperation in the ongoing improvement of our policy framework. Together, we can create an optimal environment to maximize Canada's return on public transit investment in the 21st century.
Do I have a few seconds left?