This article was first printed in the National Post on Monday, September 16, 2013
Ontario families would be forgiven if they could not remember a week when a politician did not stand in front of them to promise some grand vision for reducing congestion on Ontario’s highways. This is not surprising. After all, traffic is often listed as a major
cause of stress and
even mental illness, and is also named as
a top policy concern in Ontario. Premier Wynne proposes a substantial tax increase on Ontario families to pay for a moderate expansion in government transit.
Unfortunately, as is often the case, our politicians are ignoring an easy way to solve the massive traffic jams that have become a permanent fixture on the highways between Ontario cities.
Buses.
Despite the infatuation many have with rail, buses offer more convenient, flexible, and efficient transportation. And in Ontario, there is actually a queue of privately owned bus companies trying to break into this lucrative, and yet highly protected industry of inter-city transportation. Canadian companies want to invest their own money and resources to build a connected network of bus routes to transport people across the province and from the suburbs into the cities.
But because of an archaic system of regulations, new companies are prevented from entering the market and providing more options for regional commuters that would help reduce congestion on our highways.
In Ontario, if a new bus carrier wishes to set up shop and provide regularly scheduled service on a new route, they must submit an application to the
Ontario Highway Transport Board (OHTB) and
demonstrate a “public need” and necessity for their service. Anyone with an “economic interest in the matter” – presumably any company public or private – can oppose the application by arguing t hat the “public need” is already met by their existing service. Both parties must then make their case through a legal hearing with the OHTB, a process that can cost hundreds of thousands of dollars and a board that historically sides with the existing carrier.
Transportation Minister Glen Murray is responsible for overseeing this board, and the
provincial cabinet appoints its members. That is why most routes are held by a monopoly of either Greyhound or a government operator.
Imagine if these rules applied other industries? If a new restaurant had to make an appeal to a government body to prove there was a “need and necessity” for new food choices in their neighbourhood, and existing restaurants could oppose the application and force the parties to go to court. There would be no new restaurants, and we’d all be stuck with higher prices, poor selection, and ultimately, a bad product.
It would be absurd. But that is what new bus companies are faced with in our province.
Alberta modernized its bus regulations in 2011, which allowed several new companies to set up shop and offer regional services tailored to both business travelers looking for convenience, as well as students and seniors on shoestring budgets.
In the Northeastern United States, a slew of private buses offer downtown-to-downtown service, connecting cities like New York, Boston, D.C. and Philadelphia with express non-stop services. Many private buses offer wireless Internet, refreshments, and convenient drop-off locations, at a fraction of the price of traditional buses, trains or airlines.
Theses innovative start-ups use online booking systems and have very little overhead costs, meaning they pass on the savings to the consumer.
You can find fares for as
low as $1.
Why is Ontario so far behind?
The Wynne government has no interest in reforming the out-of-date regulatory system that is literally grinding our province to a halt. Premier Wynne prefers big government to smart competition. She and her bureaucrats have dreamt up the Big Move. They want to build a regional government transit scheme to bring people from 29 municipalities into Toronto, and are not interested in entrepreneurial and cost effective solutions to address regional transit issues.
So we are stuck with a regulatory system that prevents growth, harms consumers and benefits one small interest group.
Before Premier Wynne and her bureaucrats commit to spending billions in taxpayer money on expensive and inefficient rail projects, they should first modernize the regulatory system that prevents dynamic transportation and competition for inter-city buses in Ontario. That would be a ‘big move’ in the right direction.
