McGuinty government pumps gas tax into Ottawa public transit

    OTTAWA, Oct. 22 /CNW/ - The McGuinty government is delivering today on

its commitment to share the provincial gas tax with Ottawa and other

municipalities, to increase ridership, improve service and expand routes in

public transit systems across the province.

    "Better public transit helps build stronger cities and stronger

communities," said Premier Dalton McGuinty. "Our plan is about strengthening

Ontario's greatest competitive advantage: our people. Better transit helps our

people by improving our health, our environment and our economy. It improves

our quality of life."

    Over the next three years, nearly $85 million of the provincial gas tax

will be invested in Ottawa's public transit system. This new funding is above

and beyond the government's existing commitments.

    The Premier said the government is committed to working with the City of

Ottawa to improve its public transit system to help strengthen the community.

This new investment offers the City a stable source of funding, and the

flexibility to decide how to best use their share of the funds in meeting the

objective to increase ridership.

    "Public transit was neglected for years. We're changing that," said

Transportation Minister Harinder Takhar. "Investing in transit creates jobs,

shortens commute times and helps reduce gridlock."

    Over the next three years, more than $680 million of the provincial gas

tax will be invested in 78 transit systems, serving 105 municipalities across

Ontario. Beginning this month, municipalities will start receiving one cent a

litre of the gas tax, growing to one-and-a-half cents next October and two

cents in October 2006. Over the next five years, the government will spend

more than $1 billion in gas tax funding on public transit.

    The government's funding formula for the amount each municipality

receives is based on 70 per cent ridership and 30 per cent population. This

helps balance the needs of large municipalities with established transit

systems and small municipalities with systems just starting up.

    "Together we can build an Ontario with one of the best public transit

systems in the world - the system our people want and deserve - and an Ontario

with a quality of life that is second to none," said Premier McGuinty.