(Montreal) Finance Minister Eric Girard is convinced that it will be possible to reduce the costs of public transport networks, but does not want to see further last-minute negotiations like we have seen this year.
Posted at 5:03 p.m
Pierre Saint-Arnaud The Canadian Press
Just a few weeks before the presentation of the municipal budgets, Transport Minister Geneviève Guilbault finally agreed last week to cover 70% of the transport companies’ deficit by paying an amount of 265 million.
In front of several hundred guests gathered on Friday at the invitation of the Montreal Metropolitan Chamber of Commerce, Mr. Girard made it clear: “We can no longer do what we just did, where we negotiate until the end.” »
According to the finance minister, “the Quebec government could take responsibility for the decline in ridership,” but argues that by taking on 70% of the deficit, “we are taking on more than just the decline in ridership.”
The emergency is over
In a press briefing following his speech, Mr Girard argued that the emergency aid paid to transport companies was intended to compensate for the absence of passengers. “For the transport companies this year it is as if we are still in an emergency situation. They would have liked the deficit to be 100% covered. However, the federal government is no longer making a contribution because it considers the pandemic to be over,” he explained.
But Quebec can’t provide all the aid alone, “and that’s why we’re stopping at 70%,” he says. Transportation companies argue that the pandemic may be over, but ridership has not returned to pre-pandemic levels, particularly due to strong growth in telecommuting.
He states that his colleague in transportation is working on a five-year financing plan with revenue and expense projections and that “so this is the last year that we will fund one year at a time.”
Still fat? ” It is obvious ”
He then doesn’t hesitate to throw a stone into the carrier pond by putting himself 100% behind the idea of auditing their finances, saying he’s sure there will be cost savings. “I think it’s obvious. Are there people who are convinced that there are no cost problems with public transport companies? » he answered a question from the President of the Chamber of Commerce, Michel Leblanc.
Pushed further in the press scrum, he responded to comments from Société de transport de Montréal (STM) managers that 85% of operating costs are salaries and therefore cannot be cut, reiterating that a high percentage of expenses are wages. and payroll, “we need to contain the growth of payroll, administrative costs, executive salaries and all of that.”
Transport companies also have to learn to deal with declining passenger numbers, he says. “When ridership drops, there are roads that are used less. We must have the courage to move services to more heavily used roads. Since there are fewer users, we cannot maintain a constant service offering with fewer users. »