Headed for a train wreck
Author:
Walter Robinson
2003/10/07
It seems federal Transport Minister David Collenette can't take a hint. His drain-the-public-purse, multi-billion dollar high-speed rail scheme is consistently rebuffed by anyone half familiar with the state of the federal books and the need to balance out federal meddling with into the various modes of transit which fall under Canada's archaic transportation policy framework.
But like a bad rash that won't go away, rumours persist that more money for crown corp Via Rail and track modernization is just around the corner, after the next Cabinet meeting, and/or before the PM leaves office.
Let's be blunt, Mr. Collenette's tenure as federal Transport Minister for the past seven years can most charitably be described as aspiring to muddling mediocrity. He has rightly earned the moniker as the undertaker for Canadian airlines as eight carriers - at last count - have disappeared under his watch.
The depth of understandable animosity toward him was on full display last Friday at the black-tie gala opening (which yours truly attended) of our new $300 million, state-of-the-art airport terminal - financed entirely by airport improvement fees - which was completed on time and under budget thanks to the private sector.
Even though the Liberal dominated airport authority board vowed months ago that political speeches were forbidden to support the contention that this is a community-owned, not a government-sponsored facility, there was the Minister yabbering on for several minutes - without notes that such an occasion should dictate - and more than a few audible snickers were overheard.
Given Mr. Collenette's intransigence on refusing to reduce - or better yet end - the feds' annual $250 million rent gouging exercise at Canada's eight largest airports (including ours), his presence was akin to an absentee slumlord showing up uninvited to the tenant's housewarming party after the tenant and guests had fully paid for all the home improvements, food and party favours.
Add this to the federal government's disastrous record of not loosening foreign ownership rules to encourage an infusion of capital in our airline sector and its industry crippling, ill-conceived flying tax imposed post 9-11 and muddling mediocrity becomes a very generous description of Mr. Collenette's blunder-laden bumbling in the Transport portfolio.
And now he's back again with his megaproject dream of a $3 billion Quebec City to Windsor hi-speed rail line either in whole or in part through periodic cash infusions to government owned Via Rail. Via now receives over $260 million annually in operating subsidies and capital allocations and despite a marked increase in passenger traffic in the last 24 months, its ticket prices have risen and on-time performance improvements given personal evidence are still non-existent.
This crown corporation continues to bleed red ink. Before government subsidies and other write downs, Via lost $158 million in Y2K, $143 million in 2001 and another $172 million last year. And yesterday we learned that the acquisition of the much ballyhooed Renaissance cars is $110 million over budget. Losing $600 million in four years puts Via on the fast track - pardon the pun - to surpass the gun registry boondoggle. Quick, somebody reward the senior execs with bonuses for their "stellar" performance.
The new technology for the hi-speed line would come from none other than Montreal-based Bombardier (corporate welfare poster child) and its 240 km/hour Acela Jet Train which is pegged to cut the Montreal-Toronto trip from five hours to three hours. As well, VIA officials have also mused that service could be dropped into the Edmonton-Calgary corridor to mute political criticism of Eastern favoritism.
Long time transportation observers may be experiencing an eerie sense of déjà vu. In the late 1960s and early 1970s the gas-turbine powered TurboTrain was poised to revolutionize passenger rail in Canada. But cost prohibitive radical track improvements were needed for the train to reach its top speeds and then the oil crisis hit making the existing locomotives of the day more economical.
Fast forward to 2003 and the same economic factors still apply. Billions of dollars are still required for track improvements, signal system upgrades and other modifications for the Acela JetTrain to reach its top cruising speed. And looking around the globe, the only hi-speed rail train on the planet that has even come close to covering its costs is the Japanese version which serves a population base of 60 million people, as opposed to 8 million in the proposed Ontario-Quebec corridor. Not even France's famed TGV line is economically viable.
Proposals for hi-speed rail are economically indefensible. As for the environmental considerations, advancements in the fuel efficiency - such as fuel cells - of automobiles, buses and air travel are quickly negating any perceived environmental advantages of gas-powered rail. Not to mention the crippling effect further rail subsidies would have on Canada's beleaguered airline industry.
Instead of buying a first class ticket on a JetTrain to Deficitville, Mr. Collenette should immediately derail his dreams and get back to the airport baggage carousel (not ours please, try Toronto) and fix his disastrous aviation policy. Solutions are likely to be found by checking the baggage section for lost public policy.