Budget 2015: $1 Billion Per Year to Transit to Move People and Canada Forward

OTTAWA, ONTARIO--(Marketwired - April 21, 2015) - The Canadian Urban Transit Association (CUTA) today applauded the government's commitment to provide dedicated, long-term funding for public transit. Finance Minister Joe Oliver re-iterated in the 2015 Federal Budget the government's support by committing to invest an additional $1 billion per year in major transit infrastructure projects.

"This is a ground-breaking announcement for public transit. By committing an additional $1 billion per year of federal money, the Government is setting the wheel in motion to unlock funding for major transit infrastructure projects across the country," said Michael Roschlau, President and CEO of CUTA. "We're seeing an increasing number of major transit infrastructure projects that alleviate traffic congestion and boost Canada's productivity being delivered through alternative financing and funding mechanisms involving the private sector. This model complements traditional funding procurement models contained in the Building Canada Plan and other provincial infrastructure programs, which remain critical to the transit industry," added Roschlau.

Investments will be made through a new Public Transit Fund and will be on top of current funding programs already included in the New Building Canada Plan (BCP). New investments will start flowing in 2017-2018 at $250 million to increase to $500 million in 2018-2019 and $1B per year ongoing thereafter. The new Public Transit Fund will be administered under PPP Canada Inc. and federal support will be allocated based on merit to projects that will be delivered through alternative financing and funding mechanisms involving the private sector, including but not limited to P3s.

"Investing in transit means investing in Canada. Public transit expansion makes our cities more competitive, grows our economy, creates jobs and connects people to their places of work, school and home. Transit projects may be local but their impact is national," added Roschlau. "Building on the success of the BCP and leveraging the full potential of this new Public Transit Fund, CUTA will keep working with all governments to ensure all communities across the country, small, medium and big, get access to the funding they need to provide state-of-the-art mobility options to their citizens," concluded Michael Roschlau.

About CUTA

CUTA is the collective and influential voice of public transportation in Canada, dedicated to being at the centre of urban mobility issues with all orders of government, and delivering the highest value to its members and the communities they serve. CUTA is the national association representing public transit systems, suppliers to the industry, government agencies, individuals and related organizations in Canada.