A new analysis warns that Canada’s major cities are struggling to maintain their transit running systems and said public transport is heading into a “downward spiral” unless significant new sources of operating revenue open up. In a report released in late May, Leading Mobility Canada said the $120 billion planned for expansion of these transit systems will not help cities struggling to keep buses and trains running at current levels. David Cooper, director of Leading Mobility and co-author of the study, said the majority of public transit is funded by passenger fares and property taxes, and cities have very limited options for other revenue sources. The federal government is allocating billions to expand public transit. “It’s great that we’re getting these investments, but you can’t realise the benefits of those investments if cities can’t afford to manage them,” he said. The story continues below the advertisement The analysis examined the budgets, revenue sources and long-term plans of eight transit systems in Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Toronto, Montreal and Halifax. Most of them are already reporting budget deficits. 3:35 Can parking and vehicle fees support public transit in Calgary? Previous video Next video Calgary’s budget deficit is projected to be $33 million in 2023, the same year Toronto reported a $366 million deficit. Montreal projects its budget deficit will exceed $560 million in 2025 and reach $700 million by 2028. Halifax expects to be short as much as $22 million in 2026, or more than 15 per cent of its total transit budget, while Vancouver is warning of a structural deficit of $600 million by the same year. They all say expansion projects, such as new light rail lines in Ottawa, the high-speed bus network in Halifax and the subway expansion in Toronto, will result in operating costs far beyond what they can afford. The story continues below the advertisement Vancouver estimates that expanding bus and light rail lines will cost an additional $1.2 billion. Calgary said its operating budget will be $127 million higher in 10 years. Edmonton says its budget deficit will reach $174 million a year by 2033, while Winnipeg believes its expansion plans will add $37 million to annual costs. 1:48 Edmonton LRT ridership still struggling to return to pre-pandemic levels Previous video Next video The provinces and the federal government are providing only limited funding to support growth, and even that funding is temporary. For example, Ontario has agreed to provide $1.2 billion to help Toronto operate two new LRT lines over a three-year period. Financial news and information delivered to your email every Saturday. Receive weekly financial news Receive expert insights, questions and answers on markets, housing, inflation and personal finance every Saturday. By providing your email address, you have read and agreed to Global News’ Terms of Use. Terms and Conditions And Privacy Policy. In late July, Vancouver’s transit authority TransLink warned that it would have to make significant service cuts if its structural deficit was not addressed, including eliminating 145 of its 245 bus routes and reducing service to the SkyTrain and SeaBus. This would leave more than half a million people without the ability to walk to a transit stop or station. The story continues below the advertisement 2:17 Reaction to TransLink report threatening cuts Previous video Next video On August 8, Ottawa Mayor Mark Sutcliffe sounded the alarm about a “transit crisis” due to a $9 billion hole in OC Transpo’s long-term financial plan, which includes the opening of the nearly $5 billion second phase of light rail. “It’s nice to dream about building more light rail, but we don’t even have the money to run our current system,” Sutcliffe said. “If we don’t get the help we need, it doesn’t even make financial sense to open Phase 2 of light rail.” “Financially, we would be better off if we didn’t open and operate this system.” The report clearly shows that COVID-19 accelerated some of the structural funding issues plaguing transit systems, as work-from-home policies significantly impacted ridership. Leading Mobility said that before COVID-19, passenger fares covered an average of 59% of transit costs in Canada, much higher than the 38% seen in the United States. The story continues below the advertisement By 2023, tariffs covered just 23% of costs in Ottawa and up to 43% in Toronto. Most cities have seen ridership return – although not quite to pre-pandemic levels – but people are using the system differently, with fewer people buying monthly passes and, in some places, more using subsidised transit passes or tickets. 2:31 TTC steps up crackdown as fare evasion continues Current trend Disney Wants Wrongful Death Lawsuit Dismissed Due to Widower’s Disney+ Lawsuit ‘Huge’ water main break causes flooding in parts of downtown Montreal Property taxes are typically the second largest source of revenue for public transportation, but inflation and affordability have put enormous pressure on cities and public transportation’s ability to raise more money from property taxes is limited. Vancouver’s TransLink network receives some funding from the gas tax, but with B.C. drivers adopting electric vehicles faster than anywhere else, that funding source is shrinking fast. Gas tax revenue is down $34 million in 2023 from the previous year. The story continues below the advertisement Halifax has a benefit zone tax, a surcharge on properties located within a certain distance of public transit, which in 2023 accounted for nearly half of its total revenue, or $58.6 million. 1:51 Commuters express frustration after new delays on Halifax transit system Previous video Next video Montreal derives about five percent of its operating revenue from a tax on vehicle registration. Vehicle taxes and welfare benefits are among the Leading Mobility report’s suggestions for cities. It also suggests considering a charge on electric vehicle charging or adding congestion pricing that would charge vehicles in the busiest areas of cities, similar to what is in place in London and New York. 1:41 Quebec mayors meet to consider ways to develop and finance public transit Previous video Next video…

The Liberal government refuses to say whether it has approved a prime for the head of the Canadian Broadcasting Corporationas opposition Conservatives demand answers and New Democrats call for a ban on bonuses. It is up to the federal government to approve a bonus for Catherine Tait following an evaluation of his performance and a recommendation from the CBC/Radio-Canada Board of Directors. The CBC referred questions to the federal government. Canadian Heritage, which oversees the Crown corporation, then referred questions to the Privy Council Office, which supports the cabinet and the prime minister. Citing privacy laws, a spokesperson for the Privy Council Office said he could not release details, although some of the information from past years has been made public. 1:27 CBC CEO Catherine Tait faces tough questions about executive bonuses In May, Tait told the House heritage committee that she last received a bonus for the 2021-22 fiscal year and had not yet received performance pay for the 2022-23 fiscal year, information also available on the CBC’s website. The story continues below the advertisement Tait’s salary range is $468,900 to $551,600, with the government setting her bonus at between 7% and 28% of her salary, if she meets certain criteria. The email you need for the day The top news from Canada and around the world. Receive daily national news Get the day’s top political, business and current affairs news delivered to your inbox once a day. By providing your email address, you have read and agreed to Global News’ Terms of Use. Terms and Conditions And Privacy Policy. Opposition Conservatives want Tait to return to the parliamentary hot seat and provide answers about the bonuses. CBC/Radio-Canada’s board of directors recently approved more than $18.4 million in bonuses for nearly 1,200 employees, managers and executives for the 2023-24 fiscal year after cutting hundreds of jobs. The Privy Council Office would not say whether the council recommended a bonus for Tait, or whether the federal government gave its approval. “Clearly, Justin Trudeau and the Liberal government are content to hand out massive, multi-million dollar taxpayer-funded bonuses to CBC executives and their hand-picked CEOs amid declining viewership and increasing irrelevance, as long as they remain good servants to their masters and continue to act as the propaganda arm of the Liberal Party,” heritage critic Rachael Thomas said in a statement Wednesday. The CBC’s editorial independence from government is enshrined in law. Twice in the past year, Tait has been called before the heritage committee to answer questions about cuts to CBC/Radio-Canada, and has been questioned by MPs about whether she would accept a bonus for the fiscal year that ended March 31. Current trend Taxi scams are ‘widespread’ in Canada. Here’s how to spot them Smallpox cases are on the rise. What Canadians need to know about the spread of the virus 2:31 Heritage Minister says media sector faces ‘significant crisis’ as CBC lays off 10% of staff The New Democrats have not said whether they want Tait to return to the Canadian heritage committee, but they have accused the Liberals of failing to protect jobs at the public broadcaster and “failing to rein in the greed of CBC executives.” The story continues below the advertisement They also criticized the Conservatives, saying that while the Conservatives want to defund the CBC, the NDP would improve it. “Our public broadcaster provides an invaluable service to Canadians. It is also accountable to Canadians,” NDP heritage critic Niki Ashton said in a statement. “So it’s time to ban the CBC from paying executive bonuses and use that money to save local journalism.” In June, the broadcaster’s board publicly acknowledged the negative impact of awarding bonuses in the same financial year in which it made budget cuts, and has since launched a review of its remuneration scheme for the coming years. Between December 2023 and March 31, the end of the last fiscal year, CBC/Radio-Canada eliminated 346 jobs within the organization by laying off 141 employees and eliminating 205 vacant positions. Committee members unanimously concluded in a report to the House of Commons earlier this year that given the job cuts, it would be inappropriate for the CBC to award bonuses to senior management. © 2024 The Canadian Press Source link

Some Canadians farmers say the changes to a federal incentive are being touted as a way to reduce the impact of the capital gains The increase in the inclusion rate “does not go far enough” and they are calling on Ottawa to return the inclusion rate for farmers to what it was before this year’s change. On Monday, the Finance Department provided more details on the Canada Entrepreneur Incentive (CEI), which, first announced in April, would cut the capital gains inclusion rate in half, to 33 per cent, up to a limit of $2 million, by its full rollout in 2034. The new change brought that date forward to 2029, with incremental increases of $400,000 starting in 2025. The incentive also only allowed founders of a company to be eligible, but this condition has now been removed and the requirement to hold 10% or more of the shares has been reduced to 5%. The story continues below the advertisement Under the changes made by Ottawa, the inclusion rate for taxable capital gains has increased from 50% to 67% for individuals making more than $250,000 of such gains per year. However, the same increase will also apply to all such gains made by corporations and many trusts. “It certainly doesn’t go far enough,” Kyle Larkin, executive director of the Grain Growers of Canada, told Global News. “It will benefit some farms in Canada, but most farmers will see no benefit from it and will still face a tax increase.” While many farms in Canada are incorporated, the Grain Growers of Canada says that even if a farmer’s principal residence is not subject to capital gains tax when sold, he or she will still be subject to that 67% rate on any gains realized when selling farmland. The email you need for the day The top news from Canada and around the world. Receive daily national news Get the day’s top political, business and current affairs news delivered to your inbox once a day. By providing your email address, you have read and agreed to Global News’ Terms of Use. Terms and Conditions And Privacy Policy. To give some perspective, grain producers calculates that an Alberta farm of approximately 2,500 acres purchased for $1,385,000 in 1996 could potentially sell for approximately $17,250,000 in 2023 for a pre-tax profit of $15,865,000. 4:48 Family Farm Succession Planning Following New Capital Gains Taxation “But that money doesn’t go directly to the farmers,” Larkin said. “They have debt to pay off, a lot of the equipment is leased … So there’s a lot of debt to pay off before they make a profit on the sale.” The story continues below the advertisement John Oakey, vice-president of tax at Chartered Professional Accountants of Canada, told Global News the changes to the CEI are an adjustment to a program put in place to “soften the impact” of rising capital gains. He said the biggest impact is that more farmers and fishermen can apply for the program, as previous requirements included having to own shares in a company, which not all farmers have. Current trend Sheeppox declared a global public health emergency by WHO Plant-based milk recall: Third person dies, listeriosis cases rise to 20 “By opening the door to farm and fishing property, we’re better aligning ourselves with the criteria used for the capital gains exemption,” he said. “It’s broader for them and it should make it easier to access farm and fishing property.” Oakey added that reducing the implementation period to just five years means people will not have to wait until 2034 to access the full $2 million incentive. “Especially when we are going through a significant transition period between generations of businesses, including agricultural and fishing properties,” he said. 2:32 Ontario Federation of Cottage Associations lobbies against capital gains tax changes Some organizations welcomed the decision, with the Canadian Federation of Independent Business saying it was pleased with some changes, including increased access for farmers and fishers, as well as the addition of personal service businesses. The story continues below the advertisement However, she criticised the decision that not all entrepreneurs were included, such as restaurateurs or those in the arts sector. According to Statistics Canada’s 2016 Census of Agriculture, about 97 per cent of Canadian farms are family-owned, and Larkin said many want to keep the operation in the family, but capital gains mean even more stress. He said young farmers are already facing “millions of dollars” in debt for the transition, but the tax changes will only increase that amount. © 2024 Global News, a division of Corus Entertainment Inc. Source link