B.C. Premier David Eby approves $479-million TransLink bailout
David Carrigg
The Vancouver Sun
Mobility pricing next, say B.C. Liberals
Premier David Eby announces a bailout for TransLink on Wednesday, March 15, 2023, in Vancouver. Photo by Herman Thind /jpg
The provincial government will give TransLink almost half a billion dollars to prevent service cuts, keep fares stable and fund the purchase of electric buses.
The announcement came two weeks after a similar amount was promised to B.C. Ferries to also prevent service cuts, keep fares stable and buy electric ferries.
B.C. Premier David Eby said the $479 million TransLink grant was needed to address the bus, SeaBus and West Coast Express provider’s “urgent financial needs.”
Last month, the TransLink Mayors Council on Regional Transportation called on the federal and provincial governments to give TransLink $500 million in “emergency relief transit funding” to offset the financial impacts of reduced demand due to COVID-19 and to help cover TransLink’s $20 billion 10-year expansion plan.
The $20 billion plan includes doubling bus service, adding nine new Rapid Bus Transit lines and expanding transportation infrastructure — including extending SkyTrain to the University of B.C. and building a gondola to Simon Fraser University.
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TransLink’s operating budget is being hammered by reduced ridership thanks to COVID-19, inflation and reduced gas tax revenue as people work from home or switch to electric cars.
The transit provider believes it will recover completely and that demand will grow over the next decade due to population growth.
“Hundreds of thousands of people rely on TransLink’s service every day to get to work, travel to school, and access all parts of the region,” said Eby. “Failing to act now would lead to higher fares, fewer buses on the road and reduced service across the board. We won’t let that happen.”
The money will be used to “stabilize the transportation authority’s finances,” help pay for 115 new electric buses and increase service on existing routes.
This is latest in a series of big spending announcements by Eby.
Since last November, Eby has spent around $2.1 billion of a $5.7 billion unexpected surplus that must be apportioned by the end of March. Anything left over will be applied to provincial debt.
Most of the surplus was due to a one-time federal government adjustment to the provincial share of personal income and corporate tax revenues from prior years.
The spending announcements include a $1 billion municipal infrastructure fund, $500 million for B.C. Ferries, $500 million in affordability tax credits, B.C. Hydro and ICBC rebates and a $500 million rental protection fund.
Canadian Taxpayers Association B.C. director Carson Binda said federal and provincial governments had now given TransLink more than $1.3 billion in pandemic-related relief.
Trevor Halford, B.C. Liberal party Opposition critic for transit, said the TransLink payout was for operational uses and that it was not sustainable.
“This is for operational costs. What about next year?”
He believes the B.C. NDP are moving toward a mobility pricing model that would penalize car drivers because they would pay more.
“I am very concerned that the premier was asked to clarify their position on mobility pricing and they wouldn’t,” Halford said.
He said TransLink should be able to cut costs internally.
TransLink’s net direct debt was $4 billion last year, so at an average interest rate of five per cent the annual interest payment was $200 million.
The transit provider said it needed to borrow an additional $300 million in 2023. It’s not known if any of the $479 million announced on Wednesday will go toward covering that $300 million requirement.
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