The Minister of Transport, Geneviève Guilbault, is calling on transport companies to tighten their belts as they await future funding. Quebec estimates that the industry’s overall shortfall could reach $2.5 billion over the next five years.
“When we calculate the total expected shortfall accumulated over the next five years for our ten largest transportation companies, we end up with a shortfall of $2.5 billion. That’s a lot of money,” the minister immediately said during a speech Thursday at the annual conference of the Quebec Urban Transportation Association (ATUQ).
M is thus calculatingme Guilbault is more optimistic than ATUQ, which last year calculated a deficit of 560 million in 2023, 650 million in 2024, 800 million in 2025, 860 million in 2025 and 90026 million in 2027 at 3.7 billion. 2027.
In the minister’s office, the government statistic takes into account the registration tax that was increased in April across Greater Montreal, but also the revenue generated by the Regional Metropolitan Transportation Authority (ARTM) with the REM. .
Still, the elected official says, the environment requires us to be “realistic” and “find ways to absorb the deficit rather than expand it,” at a time when ridership is gradually returning to pre-pandemic levels everywhere. In Quebec.
For months already, the minister had warned of his intention to “rationalize” spending, however, promising a five-year, continuous funding plan for the industry. Behind the scenes, it is indicated that there are still negotiations to be held with the finance ministry to release the available amounts. A two-phase scenario, with new emergency aid and a five-year plan, is currently being considered.
“We especially like savings”
During his speech, which was eagerly anticipated by transport companies still struggling to recover from the pandemic, Mr.me Guilbault reiterated that he was “the first to push for increased service delivery.” “Other scenarios are on the table. I will share my thoughts and conclusions in the coming months,” she said cautiously.
Claiming to have heard A message from Greater Montreal’s 24 mayors called for at least a 7% annual increase in service delivery, although the minister said “to increase this offer, […] You must first have the ability to pay.
In the 2018-2023 edition of the Sustainable Mobility Policy, the government has set a target of 5% service level across Quebec. However, this objective has been undermined by Covid-19. It is this target that the mayors are now asking to be raised to 7%.
“We don’t just want temporary help, we especially want savings and structural and lasting solutions,” replied M.me Guilbault emphasizes the importance of continuing to “respect everyone’s limitations” to arrive at a “sustainable vision of funding for transportation companies.”
“Culture to change”
At the very least, the minister said, the industry can “calculate its cost to make an efficient offer and efficient dollar investment”. “An hour of service in the suburbs doesn’t cost the same as in Montreal. The train and bus don’t cost the same,” she explained.
In his view, “there is a whole culture to change” in the way funds are managed in public transport. “It’s an ambitious project, but achievable as long as we work together. I know you believe in it. I believe in it,” he told the Transporter panel.
Minister Gilbault’s entourage, who completed a consultation tour with public transport stakeholders this autumn, represents approximately 18% of the overall deficit of 2.5 billion, i.e. almost 450 million, which is cyclical in nature, in other words loss of fare revenue.
As for the structural part of the deficit, about 2 billion, this will mainly account for the increase in operational costs such as maintenance, service contracts and salaries. These represent approximately 70% of carrier operating costs.
“My sole purpose is to highlight the scale of the challenge facing us by presenting you with these figures, which we gathered over the summer following our consultations,” the CAQ concluded.
Update on ridership
In Canada, as of last July, the average ridership on public transit was 75%. It is in these waters that most Quebec companies are found, even if some are doing well. However, Canadian transportation companies’ revenues are doing a little better: on average, revenues have recovered 83% compared to pre-pandemic levels.
