Liberals promise $29B for transit, transportation
TORONTO - The governing Liberals are promising to pave the way for $29 billion to be spent on new transit and transportation infrastructure in Ontario over the next decade, but they aren't rolling out the entire blueprint yet.
Some of the money will come from re-routing about $1.3 billion a year in gas taxes, Premier Kathleen Wynne said Monday. The remainder will be raised through debt including green bonds and new "revenue tools" that will be kept under wraps until the budget is tabled.
The fiscal plan could make or break the minority Liberals, who need at least one of the opposition parties to support it if they want to avoid an election.
"We need a partner to put our plan in place," Wynne said in a lunch speech to the Toronto Regional Board of Trade.
"That partner could be the Progressive Conservatives, it could be the NDP or if necessary, the voting public."
But Wynne wasn't in a cajoling mood, saying the Tories would be "robbing Peter to pay Paul" by cancelling rural and northern projects to fund Toronto subways and dismissing the NDP as having no plan at all.
Wynne said she would divide $29 billion into two dedicated funds: $15 billion to build public transit in the Toronto-Hamilton area and $14 billion for transportation infrastructure including roads and bridges in the rest of the province.
Instead of hiking fuel taxes, Wynne said she would detour the provincial portion of the gas tax about $1.2 billion annually to the two funds rather than the main government coffers.
Municipalities would still get the two cents per litre about $320 million they currently receive for transit projects, she said.
Ontario's portion of the HST that's collected on gas taxes, which amounts to about $130 million a year, would also be re-directed to the funds, she said.
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