The Canadian Urban Transit Association (CUTA) stated that it applauds the federal government's commitment to transferring funds from a federal gas tax to transit.

The federal government released its latest budget this week with provisions that allow for the transfer of a portion of the federal gasoline tax to municipalities in a program within which urban transit is a high priority.

With the nation’s public transit capital infrastructure needs for 2004 to 2008 set at C$21 billion, CUTA officials said the new budget is a step towards meeting requirements, but remains a long way from a sustainable and long-term solution.

"Unfortunately, the gradual pace at which the gas tax is to be implemented and the lack of a guaranteed minimum for transit will make it difficult to make a significant impact until later in the five-year phase-in period," said CUTA Chair Robert Olivier.