
TransLink is suddenly on more stable long-term financial footing after the federal government pledged its practise of sharing federal gas tax revenue will become permanent policy.
The commitment was included in the Conservative government's budget handed down Tuesday and TransLink board chair Dale Parker called it "fantastic news."
TransLink will get $49 million from Ottawa this year – a share of federal fuel tax collected from this region – and the transfers are expected to grow to $123 million by 2010.
But the program was to expire in 2015 and until now federal officials had made no guarantee it would be extended.
TransLink had long lobbied for a permanent share of the gas tax, the lack of which had been an ongoing cloud over the authority's outlook.
With the uncertainty lifted, Parker said the ongoing stream of gas tax revenue can now be used to back borrowing for large-scale transit expansions.
"Even at this year's rate, today's budget means that TransLink could finance half a billion dollars in improvements," Parker said.
The tax handover is expected to continue to escalate in the years ahead beyond 2010.
The Evergreen Line extending the SkyTrain network to Coquitlam will also get a share of $500 million the Conservatives earmarked for public transit infrastructure in Tuesday's budget.
TransLink spokesman Ken Hardie said the federal contribution is expected to be $67 million over two years, but added more may be possible.
The provincial government hopes Ottawa will eventually commit $400 million to the rapid transit line, matching $400 million pledges from Victoria and TransLink.
The cost of the project has grown to an estimated $1.4 billion in recent weeks, leaving a significant amount unfunded even with a full federal share.
Parker said the federal pledge "is a signal that we are closer to a 'go'" for the Evergreen Line.
"TransLink is poised to move forward once we have the results of the current public consultation."http://www.bclocalnews.com/news/Fed_gas_tax_pledge_aids_TransLink.html
The commitment was included in the Conservative government's budget handed down Tuesday and TransLink board chair Dale Parker called it "fantastic news."
TransLink will get $49 million from Ottawa this year – a share of federal fuel tax collected from this region – and the transfers are expected to grow to $123 million by 2010.
But the program was to expire in 2015 and until now federal officials had made no guarantee it would be extended.
TransLink had long lobbied for a permanent share of the gas tax, the lack of which had been an ongoing cloud over the authority's outlook.
With the uncertainty lifted, Parker said the ongoing stream of gas tax revenue can now be used to back borrowing for large-scale transit expansions.
"Even at this year's rate, today's budget means that TransLink could finance half a billion dollars in improvements," Parker said.
The tax handover is expected to continue to escalate in the years ahead beyond 2010.
The Evergreen Line extending the SkyTrain network to Coquitlam will also get a share of $500 million the Conservatives earmarked for public transit infrastructure in Tuesday's budget.
TransLink spokesman Ken Hardie said the federal contribution is expected to be $67 million over two years, but added more may be possible.
The provincial government hopes Ottawa will eventually commit $400 million to the rapid transit line, matching $400 million pledges from Victoria and TransLink.
The cost of the project has grown to an estimated $1.4 billion in recent weeks, leaving a significant amount unfunded even with a full federal share.
Parker said the federal pledge "is a signal that we are closer to a 'go'" for the Evergreen Line.
"TransLink is poised to move forward once we have the results of the current public consultation."http://www.bclocalnews.com/news/Fed_gas_tax_pledge_aids_TransLink.html






