A federal review of the Canada Transportation Act (CTA) could have major implications for rail service through Jasper.
The sweeping review tabled by the government late last month recommends major changes to Via Rail operations in Canada, including the elimination of subsidies to Via Rail鈥檚 transcontinental train service from Toronto to Vancouver.
Known as the 鈥淐anadian,鈥� the train currently stops in Jasper two days a week, heading in each direction. A third stop is added in the summer to accommodate increased demand.
According to the report, the cross-country service received $55 million in federal subsidies in 2014, amounting to $591 per passenger.
The report states, major competitors, such as the Rocky Mountaineer, beleive Via鈥檚 subsidies give it an unfair advantage and promote uncompetitive practices.
鈥淭axpayers should not subsidize tourism services that compete with private sector operators in Western Canada. Rocky Mountaineer is requesting that, at a minimum, subsidies for Via鈥檚 鈥楥anadian鈥� transcontinental tourist service be eliminated,鈥� the report states.
Shannon Kidd, a spokesperson for the Rocky Mountaineer, said the company supports passenger rail service along the busy corridor from Toronto to Montreal and supports subsidizing regional and remote passenger rail service, but questioned whether subsidizing the Canadian was a sound public investment.
鈥淰ia itself reported that approximately 76 per cent of their passengers on this route are international tourists and as this route is highly subsidized by the Canadian taxpayer, we question whether this unfavourably impacts us and other tour operators in the region and whether this is the most efficient use of public funds,鈥� wrote Kidd in an email.
Via Rail said the Canadian has a dual mandate to serve remote communities and tourists.
鈥淰ia Rail itself has no intention to modify the Canadian鈥檚 dual mandate of serving tourism and remote community markets or its route, at this time,鈥� said Malcolm Andrews, a senior advisor for corporate communications for Via Rail.
He said during the summer tourism season, Via Rail operates the Edmonton to Vancouver service at a profit and therefore it is not subsidized. During the rest of the year, the service from Vancouver to Toronto requires a subsidy.
Transport Action Canada, a transportation advocacy group, welcomed most of the recommendations found in the report, but poured cold water on the recommendation to eliminate Via鈥檚 subsidies.
鈥淭he product offered by Rocky Mountaineer and the product offered by Via Rail are different enough that I don鈥檛 think the right word is competition,鈥� said Harry Gow, president of Transport Action Canada.
鈥淰ia Rail, for instance, provides a trip without stopping overnight from Jasper to Vancouver or from Jasper to Toronto, whereas the Rocky Mountaineer has a stop in Kamloops, in both directions, so it鈥檚 not something that would attract the traveller who is travelling to get somewhere, it would attract the traveller who is travelling to sightsee.鈥�
In response to the report, Transport Action Canada shared its own report with staff from the Ministry of Transportation recommending several different ways to transform Via Rail into a modern, affordable and effective public transportation service.
That report lays out dozens of suggestions on how to improve train service, from modernizing Via鈥檚 fleet of trains to overhauling the relationship between Via Rail and Canadian freight train companies.
According to the group鈥檚 report, one of the major issues for Via Rail is access to track. Currently Via Rail pays Canadian National (CN) and Canadian Pacific Railway (CP) to use their track, damaging Via鈥檚 on-time performance and its ability to attract travellers.
The advocacy group鈥檚 report also recommends the government invest $5 billion over 10 years to rebuild and expand Via Rail鈥檚 services.
鈥淚t鈥檚 not unusual in the public transport business that public services are subsidized. We subsidize hospitals and schools and it鈥檚 true that there are private schools, but they鈥檙e not for everybody.
The public has long accepted that it will pay for necessary public services.鈥�
When asked what impact it might have on Jasper, Tourism Jasper declined to comment.
鈥淎t this time, we do not have a comment regarding the report as it is still a review and we would like to have more information before commenting on any potential impacts on tourism in Jasper,鈥� wrote Bryan Attree, managing director for Tourism Jasper, in an email.
The Fairmont Jasper Park Lodge, which has a historical connection to Via Rail, also declined to comment.
鈥淎t this point, Fairmont Jasper Park Lodge does not have any comments in regards to the review of the Canada Transportation Act,鈥� Teresa Marshall, manager of public relations for the hotel, wrote in an email.
Paul Clarke
[email protected]
