Toronto should get streetcar money, federal Liberals say
Last Updated: Friday, June 26, 2009 | 11:19 AM ET
CBC News
The federal Liberals have weighed in on the issue of Toronto's $1.2-billion contract to buy new streetcars, calling on Prime Minister Stephen Harper's government to show some "flexibility."
"It is mind-boggling to Torontonians... why a federal government that is supposed to manage a stimulus fund doesn't see how the streetcar project will do exactly what they want these projects to do — create jobs," Toronto MP Mario Silva said.
A contract with Bombardier would see 204 light-rail vehicles delivered to Toronto between 2011 and 2018 to replace the TTC's existing fleet of streetcars. (Peter McCluskey/CBC) At issue is Ottawa's decision to deny $400 million in infrastructure funding because it says Toronto's deal with Bombardier for 204 new light-rail vehicles doesn't meet the criteria of the federal program. Industry Minister John Baird has said the Toronto Transit Commission deal with Bombardier would not create jobs in Toronto over the next two years.
Toronto had been counting on receiving one-third of the money from Ottawa and paying one-third itself, with the other third already promised by the provincial government.
On Thursday, the city said it was going to reallocate more than $400 million from exiting TTC programs in order to pay Ottawa's portion of the new streetcar deal.
"The city should not have to pay a big price for Prime Minister Stephen Harper's and Transport Minister John Baird's lack of vision," said Toronto MP Gerard Kennedy, the Liberal infrastructure critic, in a statement put out by the party Friday morning.
"We call on the federal government to show maximum flexibility in their current negotiations with the city," the statement said.
The federal Conservatives are abandoning their responsibilities, the Liberals said.
The city's statement on Thursday said: "It has now been confirmed that federal funding will not be forthcoming for this project and will require that federal funding be replaced with city debt financing."
Toronto will now be responsible for a total of $836 million.
City of Toronto staff have recommended the TTC defer various capital projects until 2018 so there'll be funding to complete the streetcar deal.
The contract with Bombardier will expire Saturday if the money isn't in place.
