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Are simple economics to blame for rising housing costs?

Toronto is undergoing a serious housing crisis — everyone is saying so! Experts, real estate agents, the media, and even politicians admit openly the cost of housing is getting out of control. And yet, even after months of knowing this fact, no one is doing anything about it.

Sure, the government is enacting rent control and a non-resident speculation tax. But this same government, whether municipal, provincial, or federal, hasn’t done what experts are claiming is the easiest and most effective thing they can do for the housing market: build!

“The only reason why prices rise is because there are more buyers than sellers,” explained Jon Love, CEO of KingSett Capital. “Prices rise for no other reason.”

Thursday, new statistics became available through the census that said Toronto has 5,000 fewer detached homes homes in 2016 compared to 2011. It’s what Love calls simple economics. When there are three people interested in purchasing one home, the problem isn’t foreigners or lack of regulation; it’s demand and supply. It means there aren’t enough homes for everyone.

Sure, we have lots of high-rise buildings popping up throughout the downtown core, but a family with three children most likely won’t want to live in an apartment building. Without diversity in housing, there will always be people left without.

It seems so simple; why is this so hard to understand? What is preventing people from building more family-friendly homes in Toronto and throughout the Golden Horseshoe?

Most people blame the NIMBYs — the people who claim they don’t want condos built in their back yard — or the bureaucratic red tape of development agencies. But Love says everyone is to blame. At the end of the day, he asks, “do we want to be Chicago, or Detroit?” A world-class city needs housing, daycare, parks, and transit — so, how do we get it?

First of all, the government needs to intensely invest in transit and open up surrounding geographies for development. If people who work in Toronto have the option of living in places like Hamilton, Barrie and Oshawa — with the possibility of commuting on an express train — many people will do so! An hour commute is not unreasonable if it means saving money on a home. This would also free up homes within the city for those who want or need it.

Why not take it even further and build on top of the rail, Love asks. The purpose of expanding the Golden Horseshoe through transit is to connect people and create communities and neighbourhoods along these hubs. This can’t be done if people have to walk for 30 minutes just to get to the bus.

Second of all, the city needs to encourage development zoning and encourage the building of low and mid-rise condominiums. “People are terrified of 60-story buildings,” Love said. “But mid-rise is fine! I would pre-zone areas to allow for that density.”

This type of variety in housing is necessary not only in order to accommodate the many types of people looking for homes in the GTHA., but also to allow for the immediate development of land in neighbourhoods that are against the building of tall condominiums. Pre-zoning would also reduce the number of complaints and bureaucratic tape that surrounds development. Instead of a developer purchasing land and then deciding what to do with it, the community would actually have a say in what kind of buildings or homes will be put in their neighbourhoods.

Finally, allowing a second kitchen within a home to be used as a secondary apartment, within designated areas, would be a short-term solution that would allow homeowners to rent our basements and provide housing for short-term occupancy.

These short and long term solutions were all suggested with the clear understanding that prices go up because there are more buyers than sellers, a concept Love says won’t be accepted until there is a significant change in public opinion.

The biggest problem is that NIMBY-ism and the fear of immigrants taking our land, jobs, and homes, are much more attractive for both the media and government agencies. Rather than stand with the experts, public servants are focusing on issues that will bring them votes, things like free prescription and lower electricity bills. Things only ever get done when the government is scared of losing power. If the public told governments to build, to increase the supply so that more people could purchase homes, it would have to do so. Until then, they will continue to blame tax foreigners and claim to help cool the market while families are left homeless.

It’s time the government consulted experts and remembered their university or college introduction to economics course — prices rise when the demand is higher than the supply. And here in the Golden Horseshoe, we have about as much demand as you can get.

Who will win Toronto’s votes?

Monday saw a battle to woo voters, with representatives from both the Conservative and Liberal Party of Ontario in Toronto to discuss their plans for housing and transit in the city.

After receiving little support in the provincial budget last week, Mayor John Tory sat down with Conservative Party Leader Patrick Brown Monday morning to discuss funding for social housing and SmartTrack.

The meeting itself was behind closed doors, but the media was given a press release following the exchange indicating PC promises to Toronto if elected into power in 2018. This included allowing Toronto Community Housing to purchase natural gas independently instead of bulk buying from the Housing Services Corporation. The idea is that TCHC will be able to save money be negotiating better prices on natural gas. The city estimates savings of about $6.3 million.

Other inclusions in the PC plan: financial support of the Scarborough subway (actual contribution unknown), supporting TTC fares on SmartTrack RER, and pledged to intervene so that Bombardier trains for the Eglinton Crosstown arrive on time.

The Yonge Relief Line, the project every transit and city building agency has indicated as its priority, was not mentioned in the statement. There was also no mention of allowing municipal sources of revenue such as tolls and short-term accommodation taxes — which makes sense considering Brown made it clear during the budget lockup that the Conservative Party was against both sources of revenue.

At the same time this statement was released, the Minister of Transportation Steven Del Duca took questions from reporters in Etobicoke. In it, he re-stated that the Ontario Liberals are big supporters of Toronto and “no one was invested more than them” in the city.

The Liberal Party has only promised $105 million for the planning of the relief line.

Honestly, at this moment in time, it doesn’t seem like Toronto will win with either party. There is still no promise for further funding for social housing or important transit initiatives like the relief line — two things that are critical to the growth and survival of Toronto.

I wonder if the mayor is planning on speaking with the New Democratic Party to find out their views? During the budget lockup, NDP leader Andrea Horwath said she was committed “to a 50 per cent funding agreement along with its municipal partners” to help in operating costs for transit. It would be interesting to see what her commitment was to Golden Horseshoe Area.

It’s the perfect time to light a fire under Queen’s Park for more transit and housing — and Tory knows it. It’s about negotiating the best deal as soon as possible, because it’s all about the votes at the end of the day.

2017 budget highlights include health care, no new transit

Thursday, the Ontario Liberal government put forward the first balanced budget in the last decade.

“This budget is fiscally responsible,” Ontario Minister of Finance Charles Sousa said to reporters in budget lockup, prior to the Throne Speech. “Balancing the budget allows us to make these important investments — investments that have real meaningful impacts in people’s lives.”

The 2017 Ontario Budget, entitled A Stronger, Healthier Ontario, is meant to spearhead a balanced budget for the next three years. The document focuses greatly on health care and education, while investing less in infrastructure and transit. There are some special tidbits for families, including a 35 per cent reduction on hydro bills for eligible households, free prescription medication for children and young adults, and funding for work-related opportunities through a new Career Kick-Start Strategy.

Sousa was adamant the budget did not have anything to do with the impending provincial election.

“Our message for the people of Ontario is that we, together, have balanced the budget, have taken the precautions of assumed growth, and now we are taking the necessary steps moving forward,” he said. “We want to be competitive long term. These decisions we make today are not based on election times. They are based on long-term benefit for the people of Ontario.”

It’s important to note that despite the balanced budget, there still exists a projected total debt of $332.4 billion as of March 31, 2017.

Here are some of the highlights from the 2017 provincial budget:

Health care

The biggest announcements in the 2017 Ontario Budget was the Child and Youth Pharmacare benefit program, which will provide free prescription medications for everyone ages 24 and under — also called OHIP Plus. The coverage includes rare disease medications, cancer drugs, medication for diabetes, asthma, mental health, HIV, and birth control. The new OHIP program will be effective as of Jan. 1, 2018.

The cost of this program, which was left out of the budgetary documents and press releases, is $465 million annually.

Ontario will also expand access to safe abortion by providing publicly funding the new abortion pill Mifegymiso.

Other investments include:

  • $9 billion over 10 years to support construction of new “hospital projects” across the province
  • $518 million to provide a three per cent to help decrease wait times and maintain elective surgeries, among other hospital services.
  • $15 million for primary care and OHIP-funded non-physician specialized health services
  • $74 million over three years for mental health services, including supportive housing units and structures psychotherapy

Transportation

The provincial government, while making significant investments in health care and education, chose to maintain investments on pre-existing projects rather then provide new funding for further transit networks like the downtown relief line.

In addition to the province’s continual $190 billion investment over a 13-year period, which started in 2014, Ontario is investing an additional $56 billion in public transportation for the GO Network and other pre-existing infrastructure projects like the Eglinton Crosstown, Hamilton Rapid Transit, and the Mississauga Transitway.

The budget indicates the province will continue to “support for the planning of the Downtown Relief Line in Toronto”, but no further funding was made available. Currently, Ontario has offered $150 million for the planning of this integral transit project.

Instead, the province is standing firm in their contributions via the gas tax program, which promises to double the municipal shares from two to four cents per litre by 2021.

Other transit projects receiving funding include:

  • $1 billion for the second stage of the Ottawa LRT
  • $43 million for proposed transit hub in downtown Kitchener, which will connect to GO and Via Rail.

Housing

The province introduced their Fair Housing Plan, which is meant to help increase affordability for buyers and renters. The cost of housing has increased up to 33.2 per cent since 2016. Ontario has proposed a non-resident speculation tax to help cool the market. This will be a 15 per cent tax on the price of homes for non-Canadians, non-permanent residents, and foreign corporations. If passed, this tax would be effective as of April 21, 2017. Ontario has also committed to improving rent control in Ontario to include units occupied on or after Nov. 1, 1991.

Toronto Mayor John Tory may not have been given the right to toll the DVP and Gardiner Expressway, but the provincial government has permitted the city to implement a levy on “transient accommodations”. This will allow Toronto to tax hotels and short-term accommodations in order to generate much-needed revenue for infrastructure in the city.

The authority to implement such a tax will also be extended to all “single-tier and lower-tier municipalities”, with the understanding that 50 per cent of the funds accumulated from the levy be given to the municipality’s regional tourism organization.

An amendment to the City of Toronto Act will have to be approved before such a levy becomes a reality.

Other investments include:

  • $200 million over three years to improve access for up to 6,000 families and individuals to housing assistance and services
  • $125 million over five years for multi-residential rebates to help encourage development
  • $70-100 million for a pilot project throughout GTHA to leverage land assets to build affordable housing
  • Proposed amendment of legislation that would grant Toronto authority to add a levy to property tax on vacant homes.
  • Frozen municipal property taxes for multi-residential properties where taxes are high

Child Care

Ontario will support an access to licensed childcare for an additional 24,000 children ages four and under. The $200 million in funding allotted to this project for 2017-18 includes a mix of subsidies and the creation of physical spaces for childcare.

In fall of 2016, Ontario spent $65.5 million to create 3,400 licensed childcare spaces.

Climate Change

This year’s budget didn’t put as much of an emphasis on the province’s environmental efforts. Through the cap and trade program, the government has accumulated $472 million in funding that must be re-invested into programs that will reduce greenhouse gas emissions. This specific funding was from Ontario’s first carbon auction in March.

Through these auctions, Ontario expects to raise $1.8 billion in 2017-18 and then $1.4 billion annually following that year. Examples of where this money can be spent include promoting electric vehicles, modernizing transit, preserving lands, enhancing research, and Green Investment Fund initiatives.

Other investments include:

  • $377 million through the Green Ontario Fund to make it easier for households and businesses to adopt proven low-carbon technologies.
  • $200 million in funding for schools to improve energy efficiency and install renewable energy technologies
  • $85 million to support additional retrofits in social housing
  • $50 million in commuter cycling infrastructure like cycling lanes and barriers
  • $22 million in electric vehicle charging infrastructure

 

More to come.

Rail deck park is still on the table, but how to fund it?

Rail Deck Park is still on the table for Toronto, as the city debates whether the one billion dollar price tag on the 21-acre park is plausible.

Toronto Chief Planner Jennifer Keesmaat moderated an urban planning symposium, held by the Urban Land Institute Toronto (ULI) Tuesday, that discussed the implementation strategy for the controversial park project. In the fall of 2016, the city announced they would prepare a strategy to build a park between Bathurst St. to Blue Jays Way. The Rail Deck would use airspace above the railyard in downtown Toronto and close up a gap that divides the downtown area and makes it less walkable.

The park is controversial because it is incredibly expensive to build, estimated at one billion dollars as a starting point. That price tag doesn’t include the cost of purchasing the air rights over the rail deck, which is a necessity. A developer has already signed an agreement for air rights over the space and isn’t willing to go down without a fight. The city will have to work hard to obtain the space to create a park in downtown Toronto. It is a worthwhile venture though. It would be one of the city’s last chances to create a large green space downtown as open space becomes increasingly rare.

According to a November Forum Research Poll of Toronto residents, 51 per cent of respondents supported the proposed park and 38 per cent opposed it. Not surprisingly, 46 per cent of respondents felt that the space should not be paid for with public dollars. Though there are several issues remaining on how to budget the rail deck park, Keesmaat has confirmed there is already $350 million invested from developers that is earmarked for public space.

The Rail Deck Park is an ambitious, but worthwhile project. Green space in the downtown area promotes healthy tourism and is relatively simple to upkeep. It also provides Torontonians with more outdoor space, and a carbon sink in the middle of an area full of pollution. Hopefully, the rail deck park can become Mayor Tory’s legacy, and it will be enjoyed for generations to come. Until then, it will be interesting see if the funding can be found.

Is Ontario a ‘real funding partner’ for Toronto’s relief line?

The Yonge Relief Line may have a new alignment — and that decision couldn’t come soon enough. This alignment is one of the few remaining steps that need approval before city staff can push this much-needed project forward.

And this project NEEDS to move forward.

The relief line has been talked about on and off for the last decade, and yet, it is still nowhere near completion. Politics always got in the way. Since then, the original Yonge line (Line 1) has become more crowded. This has made commutes nearly unbearable during peak hours. It has effected ridership and forced more people to use their cars instead of taking public transportation.

While some question the need for a relief line, especially with SmartTrack on the table, city staff, the Toronto Transit Commission, and Metrolinx have all come together to label the relief line as a priority for Toronto’s new transit network. Without it, they say, congestion on the Yonge Line will not be alleviated.

The biggest problem with the relief line will be the funding. As Toronto Mayor John Tory said repeatedly at a series of press conferences on transit last week, without serious funding from provincial and federal partners, Toronto will be unable to grow its transit network.

The Ontario government promised in 2016 to provide $150 million in funds to the planning and design of the relief line. That number has not changed, despite the current cost projection of $6.8 billion for the relief line. This means that the provincial contribution won’t do anything other then fund a study or two.

It’s also why Tory has been campaigning and pushing the province for more. When the province dismissed Toronto’s attempt at raising funds through tolls, they effectively removed a significant form of revenue for the city. Without that money, Toronto has no choice but to make its residents pay for the transit network, no matter what the politicians say. That’s why Tory is asking the province to step up and become a “real partner” in their efforts to fund transit infrastructure. He wants the province and the federal government to each pay 40 per cent of the relief line.

The province has been hitting back, indicating they are a “stable provincial funding partner”, despite the lack of funding announcements. But Toronto residents are not falling for it — and that fact is already showing in the polls.

Taking away a revenue-generating tool like tolls without offering a solution is not leadership. Ignoring the needs of one of the biggest cities in the province is also not the way to get elected, despite what advisors may be whispering into the Premier’s ears. The Liberal government will find that out if they refuse Tory’s proposal of short-term hotel taxes as a revenue tool.

Back to the relief line: In May, the executive committee will debate the new alignment option down Carlaw Ave., between Gerrard St. and Eastern Ave., before sending the route to city council for approval.

At this moment, construction will begin in 2025.

Laneway suites as sustainable housing solution in Toronto

Laneway housing has been all the buzz in Toronto as a way to create more housing in high-density areas. With an eminent housing crisis and very low availability for housing in the city, stakeholders are desperate to find a solution, and find new places to put homes could be the answer. So what exactly is laneway housing?

Think of it as a basement suite, but on top of your existing property. A laneway house is an additional suite on the same property as an already existing house. It is typically built on top of a garage or at the back of the house near a lane or alley. It would function similarly to a basement suite in the sense that it relies on services on the main house, but would be above ground instead. According to Cofounder & Architect of Lanescape, Craig Race, “There are a lot of cities with framework for laneway housing, with Vancouver as a leader for this. The laneway suite gets all of its servicing and mail delivery from the main house, they are always on the same property and must work in tandem with the main property. Through a pretty intense public consultation process, we are trying to build something suitable for Toronto as well.”

Previous city councillor Adam Giambrone killed laneway housing in 2006 when a report condemned the practice because homes would to be provided with external services such as water and hydro from the laneways rather than the main house on the property, and this was seen as untenable by the city. As a result, the city over-regulated laneway housing and made it extremely difficult to build at all. The process to build a laneway suite is covered in red tape and can take months to approve. “It is a difficult process and very expensive. It is necessary to go through the Committee of Adjustment or the Ontario Municipal Board, which is a long process and takes a lot of expertise,” Race says. “It is very prohibitive for homeowners today.”

Since then, laneway suites (as opposed to independent houses) have grown in popularity in urban centres across North America, and would rely on the main house for water and electricity. “When the city looked at this before, it was assumed that the laneway would need to provide services, but the services could be provided at the front of the home. It is just a matter of taking it underground.” Race explains. “You would take it from your basement and dig a rear trench to the laneway house.” Once the trench is constructed, the laneway suite would use the same water and electricity as the main home.

In conjunction with Evergreen, Lanescape has been involved in public consultations across the city educating people on the importance of laneway housing. The involved parties have been actively engaging with city councillors, meeting with technical staff who will be affected by the changes and hosting presentations for the public to be involved. The public consultation process ramped up after Ontario Minister of Housing Chris Ballard announced last fall that every municipality should begin developing legislation for laneway housing across the province.

Allowing laneway suites would ultimately be a positive development for Toronto because it responds to the need for housing in high-density neighbourhoods and is also a sustainable approach to housing. “Laneway suites and sustainable living go hand in hand. They allow for visible density because people can co-habitat on existing structures and makes better use of what we have,” Race says. “These structures are designed to be environmentally conscious. There is also a point to be made about the health component of living above ground, and not in a basement.”

In order to develop a cohesive report to present to council in the spring, Lanescape is accepting responses to a public survey as a part of their consultation process. From there, the report will be delivered to city council and they will begin debating to see if laneway suites can become a part of the housing development landscape in the city.

If you are interested in supporting laneway housing, take the survey and help push forward the agenda for more affordable housing initiatives in Toronto.

Running helps Canadian singer Melissa Bel stay on a high note

Why do you run? Some people choose to run to loose weight or keep fit — all you need is a pair of shoes and an open road. But, there are many more benefits to running than simply overall health, just ask Canadian singer and songwriter Melissa Bel. In a phone interview, the Toronto native now living in Devon England talks about her music career and how running helps her both mentally and physically.

“It has been over a year now living in a rural village called Devon. It is a slower pace of life where everything closes at 5pm,” Bell says with a laugh. Despite missing the busy city life in Toronto, this Canadian pop soul artist finds running on country roads relaxing. “The city drives you to be busy. Having that balance is good,” she adds.

And she wouldn’t have it any other way.

When she isn’t doing media interviews or promoting her music, Bel is running. The movement helps inspire creativity and clears her mind. “I considered myself a casual runner and Devon is a beautiful place to run. It is a constant battle to run but it is the progress you can make it. I run one mile. Next day I will run two. It is therapeutic and is a good way to blow off steam,” she says.

“I originally started running to lose weight, tone up my legs, and improve my fitness. I’ve been an on-and-off runner for about six years, but recently have started to be more consistent with it. Possibly because the more mild UK climate makes it easier to run outside all year long. I’m actually thinking of doing my first-ever race in October, the 10 mile Great South Run (I have to stick to it now that I’ve said it on record!). I still run for the same reasons as when I started, but also to blow off steam, clear my mind, and challenge myself. It’s a bit meditative for me as well because it’s one of the rare times where I’m fully in the moment and not getting distracted by thoughts and worries. I’m fully focused on my breath and my strides.”

Bel is not working on any new music at the moment, but is rather promoting her recent album In the Light, which includes seven songs on the Extended Play. The album was released on Nov. 4 of last year.

This will be Bel’s fourth album and her music before was jazz and blues attracting fans in the 40’s and 60’s age groups and a huge following in Quebec. “My earlier albums were definitely more jazz and blues, with bits of pop, folk, soul and even rock,” she says. “I wanted to be more consistent as far as the genre of “In the Light”, and to be perfectly honest wanted a better shot at getting played on the radio. My goal with this album was to do something fresh and contemporary while incorporating my soul and blues influences. Hoping to gain some new fans while giving my existing ones something a bit different that they’ll still enjoy!”

On April 26th, Bel will be coming back to Canada. She will be in Toronto performing at the Cameron House.

 

www.runwithit.ca

Twitter: @ christineruns

Youtube – runwithitcb1

Tory hits back at province for transit and relief line funds

Early Tuesday morning, Toronto Mayor John Tory sent a letter and a list of budget recommendations to Ontario Minister of Finance, Charles Sousa, calling on Ontario to become “a full partner in cost-sharing of major infrastructure investments going forward.”

The letter outlines Toronto’s infrastructure expectations given the province’s rejection of tolls. Tory said the province has an “obligation” to help the city pay for the maintenance of both the Don Valley Parkway and the Gardiner Expressway, in addition to helping pay for new lines in the transit network, like the Yonge Relief Line.

Tory’s budget recommendation included the approval of a new revenue tool — a levy on hotel and short-term accommodation. The city of Toronto needs legislative authority from the province in order to tax lodgings; however, it doesn’t want this tool to interfere with the funding already given to Tourism Toronto. Tory is proposing a four per cent tax on hotels and short-term accommodations like airbnb.

In addition to a revenue tool, Tory has outlined a list of recommended items the province should fund, including $820 million to help rehabilitate the Gardiner Expressway, $3.36 billion for the transit network plan, $863 million for Toronto Community Housing, and $50 million for child care subsidies.

These recommendations follow a public exchange by Tory and Ontario Minister of Transportation, Steven Del Duca on Monday, in which Tory told the media the province was not acting like a “full partner” in their commitment to build transit. Tory stood at the Bloor – Yonge subway platform and said the province needed to come up with a plan to help contribute to the relief line and other transit projects. He suggested the province, as well as the federal government, each contribute 40 per cent of the funds for the project. Toronto would then pay for the remaining 20 per cent.

Del Duca responded with his own press statement, saying the Ontario government has “always been a strong partner with Toronto city council” and that they were “not going to play political games with transit.” With words bolded and underlined, Del Duca mentioned the measly $150 million the provincial government has already pledged to the relief line and claimed to be a “stable provincial funding partner at the table” unlike the federal government.

The reality is that Toronto needs billions to develop its transit network — a network that will benefit residents throughout the GTHA as more people use public transportation instead of driving on already congested roadways. The refusal of the provincial government to allow Toronto to fund its own projects through revenue tools like tolls puts projects like the downtown relief line in jeopardy. Toronto’s growth and development is, effectively, at the mercy of Queen’s Park.

Tory understands this and is fighting back. He is trying to make it abundantly clear that if the province doesn’t allow Toronto to explore and use its own revenue tools, then it has to step up to the plate and help pay for these important projects.

There are universal benefits to developing Toronto’s transit network. It will help reduce carbon emissions as less people drive into the city. It will help connect the Greater Toronto Hamilton Area so that people can get from their home to work in a seamless manner. And it will help reduce congestion for those who have no choice but to use their car to get around.

Funding this network is a win-win scenario — and if the province is not going play politics with transit, they would see that.

City council votes in favour of Scarborough subway

After an entire day of debate, Toronto City Council voted Tuesday to approve the alignment and procurement model for the Scarborough subway.

The 6.2 kilometre subway will extend from Kennedy Station on the Bloor Line to Scarborough Town Centre along McCowan, as recommended by city staff. Council also approved the building of a new bus terminal that is meant to help create a “dynamic hub” that will attract businesses and build communities.

This is one of the final steps towards the actual construction of the subway. Staff will report back once procurement is at 30 per cent completion. It is currently sitting at five per cent.

All of city council agreed that having a transit system that connects Scarborough with the rest of the GTHA was necessary. As Toronto Mayor John Tory said while presenting this item to the rest of council, “in my respectful opinion, we need to move on.”

“The time for debate is over. It’s time to actually start building transit in Scarborough.”

The motion passed 26-18.

Why did this decision take a whole day? It’s because of the price tag. Councillors were shocked to find out that at just 5 per cent procurement, the Scarborough Subway had a price tag of approximately $3.56 billion, much higher than originally expected. When asked about this balloon in cost, the CEO of the Toronto Transit Commission noted the time that had passed since council originally decided to go forward with a subway. The longer council waits, the more expensive it will get.

Council came close to passing another motion that would have required staff to submit another report showcasing a business-cost analysis between the Scarborough subway and the seven-stop LRT alternative. According to city manager Peter Wallace, council had never asked for a comparison like this before. The motion was rejected 27-17.

Tory said that asking for another study will simply lead to another study, and then another. He pressed the need to start designing and building transit in Scarborough.

“I know in 30 years no one will question this decision,” Tory said.

Green Party hopes to woo voters with honesty and revenue tools

The Ontario Green Party is working on a comprehensive revenue tool package that will help fund infrastructure and transit projects throughout the province. The package will include a plethora of options for drivers and transit users, including the use of tolls and congestion charges in addition to uploading the cost of maintaining and operating the Don Valley Parkway and the Gardiner Express back to the province.

“One of the biggest challenges facing the GTHA is gridlock,” says party leader Mike Schreiner. “It affects our economy to the tune of $6 billion in lost productivity.”

According to Schreiner, the Green Party is willing to do something other political parties are not — explain honestly and openly what it will take to improve transit and quality of life in cities across Ontario.

“This is a situation where political self-interest is trumping the people’s interest,” he says. “There is a myth that somehow all this infrastructure is going to be built. Imagine if our great grandparents hadn’t paid for dams in Niagara Falls that generates electricity … or hadn’t agreed to pay for the cost of the 400 series highways that enabled us to ship goods to province and the US. It’s time for our generation to step up to plate and fund transit infrastructure desperately needed.”

As part of this plan, the Green Party is supporting dynamic tolling, where drivers are charged a larger cost for using certain roadways like the Gardiner and DVP during on-peak hours and less (or not at all) during off-peak hours. The hope is that this will encourage those who can use transit, to do so, and those who must drive, to carpool.

“A toll taxes people regardless of time of day when real problem is rush hour,” says Tim Grant, Green Party shadow cabinet minister for transportation. “The dynamic road pricing – although it sounds harsh at first glance – is really fair and equitable. It acknowledges that there is a higher cost to discourage drivers in rush hours.”

The money collected from these tolls would be dedicated to transit, ensuring that those who choose to use alternative modes of transportation are able to use a modern and well-maintained system. It’s a win-win scenario — the challenge is to convince people the long-term benefits are worth the cost.

“If you reduce traffic congestion, people have a higher quality of life,” Grant says. “Air pollution is reduced, fuel economy is reduced, which leads to higher air quality and more time on [drivers] hands.”

Grant says the problem with the current funding provided by both the provincial and federal governments to municipalities for infrastructures is that it only pays for the initial planning and construction of a transit project, but not to operate or maintain it. This results in poorer service and low ridership.

Another aspect of the Green Party’s revenue plan is to upload the costs of operating and maintaining the DVP and Gardiner Expressway back to the province, something that was promised over 10 years ago. This would free up a couple billion dollars worth of funding the City of Toronto could use to build better transit infrastructure and maintain other roads within the city.

The key, both Schreiner and Grant say, is to actually listen to experts and communicate that information honestly to the public, without political agenda.

“Part of the problem is that political parties prepare their platform and policies based on a calculation of what voters think – and it’s a sad state because the alternative is for a political leader to go out and be honest and say, you won’t like this, but you will love it afterwards,” Grant said. “It needs political leadership willing to get out in front of all this and say we are doing this because people will get to work faster, kids will have better transit, and this will be a benefit. Vote for me or not – but I will try to make life better.”

The Green Party will discuss their platform and comprehensive revenue package in May in preparation for the 2018 election.