Construction group calls for road tolls amongst funding reform measures
TORONTO, Ont. -- A road construction coalition is recommending local governments in the Greater Toronto Area, including Hamilton, include road tolls as a way of generating funds. The Residential and Civil Construction Alliance of Ontario (RCCAO) is urging the governments to adopt a range of new taxes – including road tolls, fuel taxes, levies on non-residential parking spaces and motor vehicle registration fees – in order to fund their road and public transit systems, reduce traffic congestion and cut greenhouse gas emissions. The RCCAO’s recommendations are based on a recently released study. Financing Public Transit and Transportation in the Greater Toronto Area and Hamilton: Future Initiatives was authored by Trent University economics professor Harry Kitchen and commissioned by the RCCAO. Currently, municipalities have access to only two revenue sources of any note – property taxes and user fees. “Much of this infrastructure was built years ago and is nearing the end of its life span. Billions of dollars, perhaps tens of billions, will be required to ensure that the GTAH has the public transit and transportation systems critical to remaining competitive,” said Kitchen. According to the study, the best instrument for reducing gridlock in the GTAH would be the implementation of area-wide road tolls. An estimated toll of 7 cents per kilometre on the 400-series highways in the GTAH would produce $700 million in revenue annually. The study recommends that road tolls be applied on a region-wide basis on the major 400 series highways, the Queen Elizabeth Way, the Don Valley Parkway, the Gardiner Expressway, the Red Hill Creek and Lincoln Alexander Parkways. Although the study cautions that there will be resistance to road tolls, public support will be higher if these revenues are earmarked for transportation and public transit purposes. Andy Manahan, executive director of the RCCAO, said his organization recognizes the recommendations in the report are controversial and will meet opposition in some quarters. “But the concept of user pay – raising revenue from those who derive the benefits rather than relying on general property taxes to fund roads and public transit is a preferable direction. It is fairer, more transparent, and leads to greater accountability,” he said. “We hope this report contributes to the important debate on how we, as a society, will pay for the massive transportation investment needed to maintain our competitiveness and our quality of life.” The full report is available on the alliance’s website.