Tolls will help pay for Ontario’s $100 billion infrastructure plan

TORONTO, (July 28, 2004) — Promising to repair the previous Ontario Tory government’s “infrastructure deficit,” Infrastructure Minister David Caplan yesterday announced a new 30-year construction program worth more than $100 billion.

The money will go towards health, building repairs to schools, sewer systems, transit, and new or expanded roadways, as well as bridge upgrades — particularly in the Golden Horseshoe area.

The Ontario Liberals have warned that government won’t be able to pay for the infrastructure project on its own — and that the private sector and taxpayers will be asked to pick up part of the tab. Money will come from all three levels of government, fuel taxes, public-private partnerships, private investment, and user fees “where appropriate and regulated,” Caplan said.

That, in all likelihood, means tolls for road users. Opposition critics questioned the plan, considering the Liberals are entangled in an eight-month battle with the operators of Ontario’s only current toll road.

Despite the government’s campaign pledge to block toll hikes, an independent arbitrator recently ruled that the private consortium that owns the 407 highway has unilateral authority to increase tolls based on the contract it signed with the previous government.

But unlike the 407 deal, Caplan promised that any tolls or user fees would be temporary and applied in a way that the “public is not inappropriately taken advantage of.” As an example he cited the Burlington Skyway bridge, which was once financed by tolls. They were removed when the bridge was paid for.

— with files from Canadian Press


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