August 28, 2006

Infrastructure

Feds stalling TTC subway expansion

Federal funding uncertainty brings project to a standstill

FAZEENA SAMAD

staff writer

TORONTO

Recent suggestions that federal funding is uncertain for the TTC extension of the York University subway line is just one reason why long-term infrastructure plans are necessary, says Jeff Morrison of the Canadian Construction Association (CCA).

“The project seems to be waiting on a federal funding decision and everything is at a standstill,” explained Morrison, CCA’s director of Government Relations and Public Affairs. “It can’t be a short-term deal it has to be a long-term solution.

“What we hope comes from the fiscal imbalance report is a recognition that long-term planning needs to be central in all infrastructure decisions.”

Ontario had earmarked $670 million in the March budget for the subway line extension with the expectation that the City of Toronto and York Region would contribute another third of the $2 billion needed, with Ottawa funding the remainder.

Morrison noted the delay in federal funding may be related to the “fiscal imbalance study” the federal Conservative government is conducting.

“..long-term planning needs to be central on all infrastructure decisions. ”

Jeff Morrison, CCA

The government launched the study about two weeks ago, and “we understand that they want to wrap it up by mid-fall because the report is going to be important for the formation of the next federal budget,” he said.

“They are concentrating on the fiscal imbalance as it relates to infrastructure, so it seems the government isn’t making any decisions on any large scale projects,” Morrison suggested. “And Flaherty alluded to that in the media reports.”

Last week, Federal Finance Minister Jim Flaherty said federal funding for the proposed $2-billion subway expansion project is not a guarantee.

“There isn’t any firm money on the table,” he said.

Proposed plans call for the extension of the University-Spadina subway line north to the Vaughan Corporate Centre at Jane and Highway 7.

Morrison also pointed out from his understanding, the “federal government has never committed funds for the subway expansion,” adding, “the media reports have somehow suggested Harper’s government was holding back, but it [money] had never been officially committed ... it had been hinted at, but never confirmed.”

Morrison agreed there is a need for coordination between the different levels of government for funding major infrastructure projects, noting “greater coordination” would be supported by a long-term plan, which would allow municipalities to “plan better years in advance.

“Mass transit is very important and its infrastructure needs to be upgraded. We are hoping the federal government comes through with the money, not just for mass transit but also roads and highways, since one really can’t work without the other,” he said, adding the CCA recently submitted a brief on infrastructure to the government.

“I don’t know if we are going to see any major changes to the way infrastructure is funded in Canada. There may be an emphasis on accountability and more long-term planning, so you don’t have a situation like this one where the TTC is waiting and wondering if they have funding,” Morrison said.

“They will look at the necessity of having these types of decisions made years upfront.”

A final decision regarding the extension of the University-Spadina subway line north into Vaughan is expected by the end of this year.

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