Christy Clark eases tension with mayors after gas-tax slight

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An apparent gap between the transit-funding positions of Premier Christy Clark and Transportation Minister Blair Lekstrom seems to have been patched up, with Ms. Clark sending a letter to Metro Vancouver mayors praising their work in coming up with a plan to pay for the $1.4-billion Evergreen Line that includes an increased gas tax.

"The Mayors' Council has thoroughly reviewed available options and has chosen an option you believe best balances the interests of taxpayers and the need to improve transit services," Ms. Clark said in the letter, dated July 13 and addressed to the Mayors' Council on Regional Transportation.

Mr. Lekstrom "has my full support in continuing to work collaboratively with you to ensure the Evergreen Line goes ahead and other important transit initiatives move forward," the letter continues.

In a conference call with reporters on Wednesday, Mr. Lekstrom said he and Ms. Clark are on the "identical" page when it comes to transit funding.

"As far as the Evergreen [Line]and the other 12 projects that are tied to this - yes, we're all on the same page," Mr. Lekstrom said.

Ms. Clark's letter comes after mayors asked for clarification of comments she made earlier in the week, when she voiced concerns about the affordability of a proposed gas-tax increase. The two-cents-a-litre increase is a key part of a July 6 funding plan mayors put forward in the hopes of kick-starting the Evergreen Line, a SkyTrain extension that has been stalled for decades because of lack of funds at TransLink, the regional transportation body.

The federal and provincial governments have each committed about $400-million to build the project, and regional governments have for years been wrestling with how to come up with the rest.

"When British Columbians say that they're not really excited about paying more gas taxes, I get that," Ms. Clark said at a news conference on Monday. "Because my focus as premier is about how do we make life more affordable for people rather than less affordable."

Ms. Clark said she would give mayors more time and then discuss their "best answers."

Those comments raised questions about whether the province would support the proposed gas-tax increase, which the mayors' council says is needed to pay for the Evergreen Line and other transit projects.

The proposed tax is subject to public consultation and other procedural steps.

As debate around the two-cents-a-litre fuel tax continues, mayors continue to press the province for a new, long-term source of funding for big-ticket transit projects, with some eyeing carbon tax revenues as the most logical source.

"That would legitimize the whole idea of carbon tax," said Joe Trasolini, mayor of Port Moody, one of the communities waiting to be linked to the Evergreen Line.

The opposition NDP also favours tapping the carbon tax to pay for transit. The tax, introduced in 2007, is designed to be "revenue neutral," with tax revenues collected going back to businesses and individuals in corresponding tax cuts.

"There's plenty of money that should be going to improving transit all across the province," NDP transportation critic Harry Bains said.

During Wednesday's conference call, reporters also questioned Mr. Lekstrom about the compensation for BC Ferries chief executive officer David Hahn.

Echoing comments made earlier by Ms. Clark, Mr. Lekstrom said the provincial government last year introduced legislation to rein in compensation at BC Ferries, but that it would be difficult to do anything about Mr. Hahn's current contract.

"We actually share the concern of the public saying, 'Look, this just isn't right,' in the sense that as we move forward it won't happen again because we put legislation in to ensure that," Mr. Lekstrom said.

He said he did not know the terms of Mr. Hahn's pension at the time it was negotiated.