Mr. Speaker, I am happy to rise today to speak on this private member's motion presented by my colleague from the NDP, for whom I have great respect.
We will support this motion because this is a win win win situation. The only gamble the federal government takes is a potential loss of revenue which to my knowledge would be small. It is the responsibility of other levels of government and individual transit properties to market their services according to this new policy.
Revenue losses can occur only if transit properties are successful at encouraging businesses to participate. The impact of success on ordinary Canadians, economically, environmentally, and on our health, will be tremendous. Also, it is a real window of opportunity, because the balanced budget has increased the finance department's ability to examine and invest in new strategies that promote sustainable transportation practices.
This is a rare opportunity for the federal government to effect public policy at a local level. This tax exemption is one of the few financial instruments available to support transportation demands and management efforts and is one of the easiest to implement. This measure is supported by social, environmental, business, labour, health, transit, political and municipal organizations across Canada, representing a wide variety of interests.
Forest fires, floods, ice storms, cyclones, extreme temperatures, smog days, high UV reading days and children with asthma have opened Canadians' eyes to the dangers of climate change and greenhouse gas emissions. The tax exemption would be an immediate concrete action, proving that the federal government is serious about working toward a sustainable future.
It is a reality. The federal government is unable to meet its international obligation to reduce greenhouse gas emissions. Provincial governments are struggling with the high cost of health care due to pollution related illnesses. Municipal governments do not have the resources to maintain and expand transportation infrastructure. Canadians can no longer afford to support an indefinite increase in single occupancy vehicles and yet they have little incentive to use public transit.
Transportation is the largest single sector source of Canadian carbon emissions, 32%. It accounts for 30% of energy used and 65% of petroleum consumed. In cities where public transit is available, 50% of transportation related emissions occur due to cars and light trucks. Only 10% of Canada's 9.1 million commuters use public transit. This was reported by Statistics Canada in 1994. Today the number might be a little higher, but I do not think it is really that much higher.
Support for this initiative continues to grow steadily. Encouraging the use of public transit is no longer viewed solely as a transit issue. It is a health issue, a social issue, a pollution issue, an environmental issue and an economic issue.
At a national level this proposal is a solid foot forward in the battle to meet our Kyoto obligations. It is a proposal that makes sense. It is cost efficient and has been proven to be an effective incentive in other countries, most notably the United States.
New riders are defined as those changing their primary commuting behaviour, but current riders were also found to increase their transit use by 25% to 30% after receiving transit benefits.
The bottom line is that single occupancy vehicle use is reduced when an employer provided tax exempt transit benefits. The same GAO report quoted by finance discusses the limitations of the report in following paragraphs. Employees surveyed were receiving an average of $21 per month in transit benefits.
It should also be noted that because employers are not currently supplying transit passes except in some rare instances there is no existing revenue to be lost. The revenue can only be lost if the transit pass is substituted for taxable wages. All other revenue is not lost but forgone.
This is a huge difference when we look at the cost of other initiatives that may require immediate funding from existing budgets. This revenue that is forgone does not happen immediately but will be spread over many years as transit properties begin marketing these incentives.
Taxation is already effectively used to discourage some behaviour while encouraging others. We have taxes increased on alcohol and cigarette use, tax credits to all companies for land replenishing costs, tax reduction for charitable and political donations. This tax exemption is a proven incentive in the U.S. to use public transit.
Ground level ozone, the smog, has increased by 20% and that was from a report on advancing the dialogue on sustainable transportation in Canada, 1996. Four hundred Toronto residents die prematurely each year due to poor air quality. Ozone is a pulmonary irritant that results in inflammation of the lungs, decreased lung function and decreased resistance to infection.
Transportation related air pollution is particularly harmful to people at risk, young people, the elderly, those with asthma or chronic lung and heart disease.
By 2010 the number of cars on the planet will double and the number of vehicle miles travelled will triple. Again this is from a report on moving the economy from a conference held in Toronto in 1998.
One of the greatest economic and environmental challenges now facing the world is control of carbon dioxide, CO2, and other greenhouse gasses that threaten to destabilize climate and lead to global warming. Rising sea levels, regional aridity, drought and extreme weather events cause human displacement, severe regional food shortages and losses that exceed the financing capabilities of the insurance industry.
Government response to date will not meet our international obligation to reduce greenhouse gas emissions, the Kyoto protocol. That is why I am urging members from both sides of the House to support this motion.