In this article, you will get all information regarding La Vérif: halving public transport fares, how much would it cost? | Elections Quebec 2022

We believe that the best way to reconcile improved accessibility and improved service […] is to aim for a 50% reduction in fares over four years and to do so gradually to allow transit companies to adapt, make fare changes and absorb the increase in ridership that should come if prices are loweredsaid solidarity co-spokesperson Gabriel Nadeau-Dubois at a press briefing on Tuesday.

Roughly speaking, revenue from ticket sales accounts for one-third of funding for public transit companies. The rest is covered by the Government of Quebec and the municipalities.

QS undertakes to compensate for all revenue losses resulting from a rate reduction that would reach 50% for all users as of 2026-2027.

Québec solidaire estimates are based on fare revenues and transit company ridership in 2019. The party estimates that public transit ridership will return to pre-pandemic levels as early as 2023.

Gabriel Nadeau-Dubois in front of a metro station.

Québec solidaire co-spokesperson Gabriel Nadeau-Dubois during an announcement concerning public transit in Montreal.

Photo: The Canadian Press/Paul Chiasson

According to forecasts by the Association du transport urbain du Québec (ATUQ), which represents the province’s 10 largest transit companies, revenue from the sale of passes will reach nearly $1.14 billion in 2026.

Half of this amount, which should be paid in compensation, is equivalent to $568.5 million, whereas QS estimates the cost of its measure at $500 million. The shortfall would therefore be $68.5 million if the measure had no impact on ridership.

QS banking on an increase in traffic

However, Gabriel Nadeau-Dubois’ training estimates that a 50% reduction in fares would encourage 5% more people to use public transport.

According QSthis increase would boost the revenues of the transport companies, which would mitigate the financial impact of its policy in the end.

This logic holds true only if Québec solidaire does not fully compensate them for the reduced rates that new users attracted by its measure would benefit from.

If we still trust the forecasts of theATUQa 5% increase in ridership in 2026 would increase fare revenues from $1.14 billion to $1.19 billion if the full fare were charged.

To compensate for a 50% reduction granted to users, $595 million should be paid to transit companies, rather than the $500 million indicated by QS.

L’ATUQ emphasizes that the arrival of new users would generate additional costs for transport companies. However, the service offer must be taken into account in the equation, because if there are more users, it will probably be necessary to put in additional buses at certain times, which will increase operating expenses.

After the publication of this article, QS confirmed that compensation would not be offered to transit companies for the additional ridership its proposal would cause.

But the political formation undertakes to compensate them if ever an increase in the number of users generates additional expenses.

To respond to these potential increases in operating expenses and increase the supply of public transit, Québec solidaire is investing $21.8 billion in fixed assets over four years and increasing the envelope granted to the Assistance Program by $200 million per year. to the development of public transport said a party spokeswoman.

La Vérif: halving public transport fares, how much would it cost? | Elections Quebec 2022

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