Liberals will invest $49.8B in GTHA transit over next decade

All of the $4 billion netted from the sale of 60% of the Hydro One transmission will go toward transportation infrastructure, premier says.

Thestar.com
April 23, 2015
By Robert Benzie, Richard J. Brennan and Rob Fergus

Premier Kathleen Wynne’s Liberals will invest $49.8 billion in Greater Toronto and Hamilton Area public transit, highways and bridges over the next decade, the Star has learned.

That’s the GTHA’s transportation share of $130-billion in province-wide infrastructure spending to be detailed in Thursday’s budget by Finance Minister Charles Sousa, sources say.

The cash infusion incorporates the previously announced $16 billion for regional public transit projects like Mississauga’s $1.6-billion Hurontario LRT and the $13.5 billion for GO regional express rail expansion.

Because money for those projects has already been allocated, the remaining $33.8 billion would go toward other transit priorities, including the TTC’s Finch Avenue West LRT.

To highlight her commitment to reducing gridlock that costs the local economy $6 billion a year Wynne took journalists for a 23-minute ride from Union Station to Pearson International Airport on Wednesday.

“The days of underspending on infrastructure are over,” the premier told reporters after stepping off the Union-Pearson Express train that will begin service on June 6.

“We are investing $130 billion over 10 years in public infrastructure - that is the largest infrastructure investment in Ontario’s history,” she said.

“Part of our historic investment will be spent finishing projects already underway to modernize transit in the Greater Toronto and Hamilton Area. These projects are not insignificant - they amount to $16 billion and they include the UP Express.”

A one-way fare on the Wi-Fi-equipped train will cost $27.50, or $19 with the multi-transit system PRESTO card.

Wynne said the UP Express is a good example of Ottawa and Queen’s Park co-operating for the Greater Toronto Area and said Tuesday’s federal budget “missed an opportunity” because transit spending doesn’t kick in for years.

Her comments came on the eve of Sousa releasing his 2015-16 budget, entitled “Building Ontario Up.”

Ontario ran a $10.9-billion budget deficit in 2014-15, but the Liberals still insist the books can be balanced in 2017-18.

“This is going to a very progressive, fiscally responsible budget. It’s going to be long-term in scope and it’s going to be defining,” Sousa told the Star outside cabinet before briefing his fellow ministers.

“It’s going to be the largest infusion of construction in transit and in transportation in the history of the province.”

Sousa insisted Wynne’s privatization czar, Ed Clark, did not steal his thunder last Thursday with the headline-grabbing recommendations to sell off 60 per cent of Hydro One and allow beer to be sold in 450 Ontario supermarkets.

“Not at all. In fact, it’s critical for us to have the announcement of the assets because it’s such a huge component of what we’re doing in the budget,” Sousa said, noting that selling most of the transmission utility will net $4 billion, all of which will go toward transportation infrastructure.

“I want people to be aware as to what it is that we’re doing and to have it all thrown into one day would be really tough to disperse,” he said, explaining Clark’s findings were announced a week before his budget.

In all, $31.5 billion will be spent on transit and roads over the next decade, including improved GO Transit lines.

At the same time, Sousa’s budget will formalize the sale of beer in many of Ontario’s 1,500 supermarkets starting by Christmas, which will eventually bring an additional $100 million annually to the treasury.

Sources say there will be no new taxes in the budget other than the $1 levy per 24-case of beer being phased in over four years.

Clark’s panel will report back on how to get wine on grocery store shelves by the end of the summer.

Progressive Conservative MPP Vic Fedeli (Nipissing) said the province is on a downward financial spiral that won’t be broken until the Liberals kick their spending addiction.

“They need to start using their debit card instead of their credit card,” Fedeli said at Queen’s Park.

“Any family knows that when you are in a hole - the way we are in Ontario - you stop digging. Stop using the credit card. You are going to have to pay for it eventually,” he said, predicting the provincial debt will soon top $300 billion.

Fedeli said the very real fear is that the mounting deficit is crowding out other essential services, including health and education, as well as giving bond-rating agencies ammunition to downgrade Ontario’s credit.

“We now have less money for things our citizens expect form the province. And we are seeing right now ... hospitals across the province are firing nurses and other front line workers, universities are firing professors, seniors are seeing physio, cataract surgery and diabetes testing all being cut ... the Liberals have done nothing to halt their spending addiction,” he said.

NDP Leader Andrea Horwath warned that people should be bracing for unwelcome slashing of spending.

“Cuts will be everywhere” as the government scrambles for way to shrink its deficit, said Horwath.

“I expect to see much more pain.”