Monday, 23 November 2009

The TTC - What Is It with Government and Cost Control?

The Toronto Transit Commission is about to raise rates 10% and this Toronto Star article describes how about-to-be-poorer citizens have been accumulating tokens to lessen the impact of the fare increase. The implication is that these people are somehow blameworthy for doing so.

Nowhere does there seem to be a discussion of the justifiability of the rate rise. Why does the TTC history of rate increases going back decades illustrate a long-standing case of inability to keep fares in line with inflation? Look at this graph

taken from a link at TTC, the Costly Way, an interesting account of the TTC experience from a Toronto resident. Using the year 2000 as the base, the TTC's cash fare increase to the 2010 rate has been 4.1% compounded, while the Bank of Canada inflation calculator says CPI has gone up 1.95%. That's more than double the rate of inflation! Since the TTC is a public body, profit gouging cannot be blamed, it must be out-of-control costs, perhaps (?) due to an embedded bureaucracy at a monopoly service. If there's anyone blameworthy, looks like one must also include the TTC and the succession of City Councils that have overseen this chronic mess.


Alex James said...

I completely agree with your sentiments on this topic. It's a much more complicated issue than I made it out to be in my blog; more than anything I was trying to highlight the frustration of the average Torontonian as we're once again being asked to front the money for a service that only sometimes functions the way it should, brought to us by people who routinely go on strike and complain they're being underfunded. I'm not sure who's dropping the ball here, but I'm certain of one thing -- the people of Toronto have had just about enough. Thanks for the linkback, and congratulations on a great article.

Alex James
State of Affairs

Nicholas Wind said...

I'm in Scarborough and I'm sick and tired of these union thugs in every industry.
My wife and I have one goal.As soon as my online income is large enough we will leave this bleeding heart,union run ,special interest city.
How is it that these people who run governments have absolutely "0" accountability to us, who by the way they work for.
Lastly the governments at all levels right now can't seem to find money for OUR SERVICES.
It's interesting how that is never mentioned wen there is so much laziness and redundency again at all levels of government.

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