(The Canadian Press circulated the following on October 12.)
TORONTO — The federal government is investing $691.9 million into Via Rail over five years to refurbish passenger train service, in a move that garnered praise from union officials but angered airport and travel groups, who say they’re not getting a fair treatment.
The cash injection was touted as “totally new” and the “largest capital program in the history of Via Rail” by Finance Minister Jim Flaherty yesterday.
He announced the plan at Union Station, a major hub for local subway, GO regional rail service as well as Via Rail, along with Transport Minister Lawrence Cannon.
The funding, Flaherty said, “will improve the sustainability and reliability of the passenger rail services across Canada and provide more frequent, faster cleaner and safer services along the Quebec City-Windsor Corridor.”
Cannon said rebuilding the existing locomotive fleet will allow Via Rail to achieve its emission targets as well as “improve fuel efficiency and provide travellers with faster and more reliable service.”
The announcement uses similar language to a 2003 investment in Via Rail announced by Jean Chretien’s Liberals but rescinded by the government of former prime minister Paul Martin.
Via receives about $170 million in annual operating subsidies from the government but has been struggling with aging equipment and capacity problems since the reversal. Still, it has managed to increase ridership to about 4.1 million passengers last year from about 3.8 million.