VIA Rail must grow to reduce subsidy required

With new corridor fleet deliveries completed this summer and growing demand for travel, VIA Rail should be on track to exceed five million passengers this year. Due to a combination of the issue with CN imposing restrictions on the new Venture trains, and the government’s slowness to resolve it, we’re not getting there yet. And now there’s a new headwind: A mandate by the Carney government to Crown Corporations to “find their own cuts” and reduce funding requirements by 15% in order to reinvest in defence and nation-building projects.

This must not be allowed to result in service cuts. To achieve a 15% reduction in subsidy by cutting service below VIA Rail’s already sparse levels would be catastrophic, equivalent to cancelling all remote services, all of SW Ontario, or the Canadian. It would also be self-defeating, both for VIA Rail and for Canada, because passenger growth will yield better financial results. Restoring ridership to 2019 levels could bring in enough additional revenue to offset 15% of current subsidies, and growing to six million or more annual intercity passengers, which is readily achievable with the new fleet, would achieve even better results–both in terms of direct subsidy savings and other costs to Canada avoided by giving more people access to efficient and sustainable travel choices.

We’ve written to Minister of Transport Chrystia Freeland, copied to members of the House of Commons Standing Committee of transport, Infrastructure and Communities, urging the government support VIA Rail’s VIAction2030 plan, to help the Crown Corporation overcome barriers to delivering and improving its services, including:

• Resolving the grade crossing safety issue and securing a fair Train Service Agreement with CN
• Additional stops and restored connections in the corridor to maximize ridership and value of exist services
• Restoring interline ticketing for connections with motorcoach and commuter rail services
• Extending under-18 and youth fare discounts to help fill seats on off-peak trains
• Improve border crossing for the Maple Leaf to increase ridership in Canada
• Reverse the 2017 cuts to the Canadian service once CN’s infrastructure work on the Edson Subdivision is complete

In line with the government’s desire to “spend less, invest more” we also ask that the savings achieved be used for capital projects that will enable VIA Rail services to carry more passengers more efficiently.

Reliable, inclusive, and affordable public transport across Canada is nation-building, supporting both our economic and social wellbeing. Let’s not let our MPs and government repeat the mistakes of the past when small short-term savings caused Canada massive long-term damage.

Photo: VIA Rail locomotive 2210 stands alongside recently rebuilt platforms at London Station. Terry Johnson.