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A modern and effective rail network for both freight and people, coupled with reliable public transit that empowers all Canadians to travel and access opportunities are vital to strengthening Canada’s economy and resilience in a changing world.
The Government of Canada is expected to release its next budget in the fall, and the recommendations in our submission to the government repeat many we have presented in previous years, leading with a Strategic Rail Infrastructure Fund to close the gap between the commercial interests of the freight railways and Canada’s wider national economic and security interests, including resilience and safety-related investments.
With the promise to fund the replacement of VIA Rail’s long-distance fleet having been secured in budget 2024, we look forward to that being fulfilled.
The summary of our recommendations is:
Recommendation 1: Create a Strategic Rail Infrastructure Fund to finance infrastructure resilience projects, implement Enhanced Train Control to improve rail safety, and enable freight capacity expansion alongside safe and timely operation of passenger services.
Recommendation 2: Provide VIA Rail Canada with $30 million capital funding for twelve extra cars to lengthen six of for the new corridor trains, to match the capacity provided by the heritage fleet on Toronto-Montreal schedules.
Recommendation 3: Provide VIA Rail Canada with stable operating funding for the next five years, aligned with its strategic plan to increase ridership and reduce subsidy required per passenger mile.
Recommendation 4: Extend zero-rating for GST to all train and motorcoach fares so that rural and northern residents receive the same tax treatment for public transport as residents in urban centres, improving affordability.
Recommendation 5: Designate ALTO HSR and Calgary-Banff passenger rail as National Interest Projects to reduce red tape, accelerate the start of construction, and reduce project soft costs.
Recommendation 6: Reinstate remote passenger rail service funding in the Algoma region of $2.2 million annually to implement the Mask-wa Oo-ta-ban initiative led by the Missanabie Cree First Nation.
Recommendation 7: Provide funding to address issues raised by First Nations on Vancouver Island and to restore the Vancouver Island Railway to operable condition for regional passenger and freight service.
Recommendation 8: Provide permanent funding for transit and commuter rail operating costs.