Vision_2018_07_19

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IS MUNICIPALITY GASOLINE TAX TRANSIT SUBSIDY SAFE?

GREGG CHAMBERLAIN gregg.chamberlain@eap.on.ca

Premier Doug Ford promised, during his election campaign, to help out Ontario motorists by lowering the price of gaso- line at the pump by 10 cents a litre. The mayors of Russell Township and the City of Clarence-Rockland hope that making good on that promise won’t jeopardize the public transit programs for their communities. “I would like to know where they’re going to get that money,” said Mayor Guy Desjar- dins, during a phone interview concerning the premier’s gasoline price cut promise. Premier Ford promised that if the Pro- gressive Conservatives took office, he would lower the cost of gasoline at the pump in Ontario by 10 cents a litre. He explained that cancelling the current “cap-and-trade” agreement between Ontario, Québec, and the State of California on carbon emissions was part of his strategy for making good on the promise. The cap-and-trade agreement added between four and five cents a litre to the price of gasoline in Ontario. That money helped fund a provincial program to assist homeowners and businesses with doing specific conversions to their premises to NBLFUIFNNPSFFOFSHZFGàDJFOU/PXUIF “cap-and-trade” funding no longer exists and the new provincial government has suspended the “green” assist program.

La Municipalité de Russell et la Cité de Clarence-Rockland ont tous deux des programmes de transport en commun qui dépendent de la subvention provinciale de la taxe sur l’essence pour une partie de leurs coûts d’exploitation. Le premier ministre Doug Ford a laissé entendre, pendant sa campagne électorale, qu’il pourrait réduire la taxe sur l’essence de l’Ontario, afin de tenir sa promesse d’abaisser de 10 cents le litre le prix de l’essence dans la province. La question pour les politiciens locaux est de savoir comment cela affecterait la subvention de la taxe municipale sur l’essence pour les services de transport en commun. —archives

Cancellation of the cap-and-trade agree- ment covers half of the 10-cent-a-litre reduc- tion in the price of gasoline that Premier Ford promised. But he never gave specific details on how he planned to manage the remaining five-cent reduction, though he did indicate that it might involve the provincial gasoline tax. Transit service subsidy 8IJDIJTXIBUXPSSJFT.BZPS%FTKBSEJOT and Russell Township Mayor Pierre Leroux. Both of their municipalities have public transit programs that receive an Ontario Municipal Gasoline Tax Subsidy. Both the federal and provincial govern- ments provide gasoline tax subsidies to municipalities. But the Ontario subsidy is only available to municipalities that have

public transit programs, because it is meant to promote public transit as a way to reduce both air pollution and traffic congestion. The federal gas tax subsidy is available to all municipalities for use on local infrastructure needs. There is no word yet from the provincial government about any plans to reduce the gasoline tax. The mayors of Clarence- Rockland and Russell Township want to know now if Premier Ford will target the provincial gasoline tax to make good on his promise to lower the price of Ontario gasoline. If he does, how will that affect the municipal gas tax subsidy? “The municipality relies on that money,” said Mayor Leroux. “Any loss of revenue for the municipality is never a good thing.”

“I hope it’s not cut,” said Desjardins. “That’s a substantial amount if we have to replace it.” If the gas tax subsidy were reduced or eli- minated altogether, both Clarence-Rockland and Russell Township councils and adminis- trations would have to review their existing public transit program cost to decide how to make up for the loss of support money. i8FEPOUXBOUUPIBWFUPTIVUJUEPXO u said Desjardins, adding that he is meeting with PC MPP Amanda Simard this week to discus the gas tax subsidy and other matters. Both Desjardins and Leroux also expect to raise the issue with Ontario’s new transportation minister during the upcom- ing Association of Municipalities of Ontario symposium in Ottawa.

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