Ottawa — Public transit riders will get a tax break on their monthly passes, as part of a budget that tries to appeal to elusive urban voters.
The budget also commits millions for provinces to spend upgrading and expanding public transit and building affordable housing.
Starting July 1, commuters who buy monthly public transit passes will either have to keep them or get receipts to claim a 15.5-per-cent tax credit, a move the government says will save someone who buys an $80 pass each month about $150 a year.
The measure will cost Ottawa $150-million this year alone and $220-million in 2007-2008 -- but will be funded by the decision to cancel various climate-change programs. In fact, environmental issues are mentioned in budget documents almost only in the context of funding public transit.
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"Canadians in cities are concerned about traffic congestion and the harmful emissions that come with it," says the text of the budget speech. "This government appreciates the fact that investing in public transit infrastructure can help preserve our environment."
Transit agencies and municipal politicians across the country, after winning billions in new money for public transit last year in a deal struck by the then-governing Liberals with the NDP, were concerned that the new government would scale back spending dramatically.
But yesterday's budget actually goes further than the Liberal-NDP deal, at least on public transit, said Michael Roschlau of the Canadian Urban Transit Association, which represents public transit agencies.
The budget commits $1.3-billion to public transit. Of that, $400-million is largely money that was already under discussion with provincial governments. But the Tories have also pledged to set up -- if their surplus this year allows -- a $900-million public-transit trust fund, to be spent over three years.
The old NDP-Liberal deal committed $800-million over two years in extra money for transit systems. So taken all together, said Mr. Roschlau, the Conservatives are actually offering $500-million more than the previous government.
"I think this is an excellent budget for public transit," said Mr. Roschlau, who had been lobbying federal ministers leading up to the budget. "I have no doubt about that."
The money, the government says, can also be used for "intelligent transportation systems" -- smart computerized traffic lights and the like -- as well as to build high-occupancy vehicle and bicycle lanes.
The formula for distributing the money will also likely favour big cities, such as Toronto, Montreal and Vancouver, where the Conservatives were shut out in the past election, and where public transit ridership is concentrated.
The money will go to the provinces based on population. But according to the budget documents, the government "expects that provinces and territories will take transit ridership into account when the funds are disbursed."
There was no specific mention of the proposed extension of Toronto's Spadina subway into York Region, a project that the Ontario government committed $670-million to in its recent budget.
On affordable housing, the Conservatives have also committed $800-million over three years, again contingent on a large enough surplus. Using the same legislation passed under the NDP-Liberal budget deal last year, the government will set up a trust fund for a "major, one-time investment" in affordable housing, to be distributed by population to the provinces and territories. An additional $600-million for aboriginal housing is also included, for a total of $1.4-billion.
The Liberal-NDP budget deal last year on affordable housing pledged $1.6-billion over two years, but none of the money was spent.
As promised during the election campaign, the Conservatives have committed cash to other funds for infrastructure spending: $1.7-billion over four years for borders and highways, and another $2.2-billion over four years for bridges, waterworks and other public projects.
On the environment, with Canada failing to meet its targets to reduce emissions under the Kyoto agreement on climate change, yesterday's budget had little to say, other than promising $2-billion over five years for a "Made in Canada climate change program" that is still being developed.
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