March 3, 2003
Canadian Minister of Transport, David Collenette, has decided that the congestion tax that went into effect in London, England a couple of weeks ago would be a good idea for Canadian cities. Collenette is one of those left-field Liberals who thinks that there is no problem too large that can’t be solved by government increasing taxes and starting a program. And its not surprising that he would borrow an idea from another jurisdiction. Collenette hasn’t had an original idea since early 1995 when, as Minister of Defense, he disbanded Canada’s Airborne regiment.
The London congestion tax is the brainchild of London mayor, "Red Ken" Livingstone. A perimeter was drawn around the city centre and motorists are charged 5 daily (or about $12 Canadian) to enter the city during weekday business hours. Collenette cheerfully reported that it seemed to have worked well the first week. This, from a member of the government that can’t get anything done in a year, let alone a week. When Toronto mayor Mel Lastman heard the Transport Minister’s musings he said that it was the dumbest thing he had ever heard. Now, the Melster has a habit of always saying that something is the dumbest thing he’s ever heard or the stupidest thing he’s ever heard. In fact the dumbest thing I have ever heard is Mel saying something was the dumbest thing he ever heard. But after a zillion years in politics, Mel has finally gotten it right. Thanks to Davy C.
Lastman is right when he says that it will kill businesses downtown. People who are discouraged from driving downtown to work will be less likely to stay downtown after work, go to a restaurant and the theatre or a baseball game. And people who shop during the day will head to suburban malls rather than take public transit downtown or pay for non essential driving.
Public employees such as police officers, firefighters and city workers won’t want to pay to drive downtown. But they’ll still drive. The cost of driving will simply be borne by their employer (read the taxpayer) and that cost will be reflected in higher contract settlements. And if private employers end up paying for their employees to drive, it will be factored into where to locate new businesses.
On the first day of the London tax, the number of motor vehicles entering the city centre dropped by about one third. But one week is not enough time to understand what the economic impact will be on London’s economy. And London’s transit system is different than those in Canadian cities. Already, people who have property just outside the perimeter are charging motorists to park; an amount that, when added to the cost of public transit, is a little less than the daily fee of 5. This of course causes a great deal of congestion around the perimeter.
Charging tolls for motorists to use roads and highways falls under provincial and municipal jurisdictions--it has nothing to do with the federal government. As long as he has to be our federal Transport Minister the least he can do is restrict his silly ideas and musings to federal matters. Let him stick to his high-speed choo-choo plans and let the cities and the provinces sort out their transportation problems. By commenting like he did, all he is doing is getting himself ignored by three levels of government instead of just one. As the federal Minister of Transport, he still can’t tell us how much of the $24 airline surcharge is being spent on airline and airport security. It really doesn’t matter; the $24 was just a cash grab.
The congestion tax is just another example of that old Liberal motto--if it moves, tax it--if it refuses to move, subsidize it.