[Post continued]
Assumption #4: Central Canadians receive less service than what would be proportional to their population.
Collectively, Ontario and Quebec account for 61.5% of the people living in Canada and while accounting for a slightly smaller share of VIA Rail stations/flagstops served (56.5%), they account for 80.6% of all departures offered by VIA. Without Quebec, Ontario accounts for 38.5% of national population, 29.6% of VIA stations/stops and 54.3% of all scheduled departures. The only jurisdiction with more departures per capita is Manitoba (because of the Winnipeg-Churchill train and its dozens of flagstops: total VIA Rail service to Manitobans is a total of three train services, all of which run only 2-3 times per week). Assuming my numbers are right, would you still argue that Ontario and Quebec receive disproportionally few VIA services compared to other Canadian jurisdictions?
Compiled from:
VIA Rail timetable (effective 2016/10/31) plus population figures from
Wikipedia
Assumption #5: Taxpayer money from Central Canada are diverted to pay for passenger rail services elsewhere in the country.
In order to approximate the value of the subsidy the provinces receive for the VIA Rail services, we have to allocate the subsidy (i.e. revenue shortfall) of the various services by the number of departures offered in the respective province's territory. The first thing you will see in the table below is that Ontario's share of the Corridor service's shortfall would be 84.4% ($
127.0M/$
150.4M), which only looks unbelievable until you realize that only 9 (
QBEC,
SFOY,
CHNY,
DRMV,
SHYA,
SLAM,
MTRL,
DORV and
COTO) of the (if I count correctly) 48 Corridor stations lie in Quebec's territory. This puts Ontario's share of VIA Rail's operating subsidy at $
155.3 million, of which Corridor services account for a whopping 81.7% ($
127.0M/$
155.3M):
Compiled from:
VIA's Annual Report 2015 (p.9) and
VIA Rail timetable (effective 2016/10/31)
To approximate the provinces' respective share of VIA Rail's operating budget, we have to somehow distribute the federal subsidy to the provinces. I thought in my naivety that StatsCan must provide somewhere the origin of the tax revenues collected by the federal government, but I only managed to obtain a table with the
Federal Government Revenues Collected from the provinces - in a
blog article from 2012 and using data from 2009. This analysis suggests that Ontario's contribution to the federal budget is with
39.7% slightly higher than its share of population (38.5%), compared to Quebec where its contribution is slightly smaller than its share in Canada's population (
18.5% vs. 23.0%) - which I believe to be realistic. The following calculation suggests that Ontario received VIA Rail services which cost the federal government
$155.3 million, while contributing only
$111.0 million (or
71.5% of the associated operating deficit). Interestingly, Ontario's net subsidy equals almost exactly Alberta's and Saskatchewan's combined overpayment (both equal approximately
$45M), which comes down to
$3.19 per Ontarian or 22 (!) times the equivalent figure in Quebec (
$0.15):
Compiled from:
VIA's Annual Report 2015 (p.9),
VIA Rail timetable (effective 2016/10/31) and
Thoughtundermined.com
Assuming my approximations are appropriate, do you still believe that Ontarians' contributions for VIA services are diverted to other regions in Canada?
Assumption #6: Ontarian taxpayers would save money if VIA was shrunk to only its Corridor operations.
At first sight, Ontarians would see their contributions decline from
$113,0 to
$60.7 millions and Quebeckers from
$52.6 to
$28.3 million - a decrease of 46.3% in both cases. This would mean that Ontarians would pay less than half of the
$127.0 million worth of service they receive, so clearly they would be the big winner of this scenario, right?
Actually, not, because at that point VIA would basically be an Ontarian passenger rail service, which partly serves Quebec. With 8 out of 10 provinces left without any VIA services, it will hardly be justifiable to have them finance 41.8 % ((
$150.4M-
$59.7M-
$27.
8M)/
$150.4M) of such a service which exclusively serves urban Central Canada. The move towards a financing model in which all provinces compensate the federal budget for the deficits of the services they receive would be inevitable, as only Ontario would be hurt (
$4.86 per capita), while all other provinces would gain (between
$9.40 per capita in Newfoundland and Labrador and still
$0.52 in Quebec):
Compiled from:
VIA's Annual Report 2015 (p.9),
VIA Rail timetable (effective 2016/10/31) and
Thoughtundermined.com
Do you still think that as an Ontarian taxpayer you would be better off without VIA’s transcontinental and remote services?
Concluding remarks
I can’t stress enough that I’m not trying to make any argument whether the current service levels and funding arrangements for VIA Rail are the most cost-efficient and effective way of operating passenger rail in Canada. My main point is simply that VIA Rail is a symbol of federal cooperation (and arguably the most significant symbol which remains from the confederation, which marks its 150th anniversary this year) and that breaking this symbol by cutting it down from a national network serving 8 of 10 provinces to a regional network serving the metropolitan areas of 2 provinces in Central Canada (maybe eventually also one single corridor in Western Canada) would most likely lead to a situation where Ontario would have to pay approximately
$16 million (see last table) more for worse service and this does not even account for VIA Rail's overheads (for instance: to pay for my salary, provided that I would still be needed), which would then be spread over less services, thus deteriorating the financial performance of the remaining services and thus increase its operating deficit and thus the contributions by the funding provinces. VIA Rail’s cuts (especially those in January 1990) brought an abrupt end to passenger rail services in many regions all over the country. Within the remaining (current) network, Ontario is placed with arguably the best service, even if some people in this forum appear to not perceive it this way…
Disclaimer
All calculations are approximative and should neither been taken as unconditionally correct nor linked with my employment. Also: all data used is readily publicly available and I believe that everyone here could reproduce my calculations with the references I provided.