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SEARCHPlan allows gas tax funds for transit, but gives no guaranteed minimum.
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.
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