A look at three recent major environmental issues dealt with by council sheds some light on whether user pay is a principle or just a convenient debating tool.
By Don McLean
Published March 24, 2008
The theory that users should pay for services is a favourite argument of some city councillors. A look at three recent major environmental issues dealt with by council sheds some light on whether user pay is a principle or just a convenient debating tool.
Back in November, there was a big debate at council about raising bus fares. They had already been increased substantially in June, and a second hike was being proposed. Together the two increases added 22 percent to the price of an adult HSR pass, and 26 percent to the passes used by elementary and secondary school students. For a family of four that added $648 to the annual cost of riding the bus.
Faced with rising costs of operating the transit system, the councillors identified two choices – raise fares or raise taxes. The latter increase was less than $20 per home. Should just the users of the HSR pay, or should the burden be spread out over everyone? The user pay argument won the day. The fares went up.
Then in January, several citizens made presentations to council suggesting that this user pay principle should be applied to the Red Hill Valley Parkway.
In presentations to city council, they pointed to the extra $2.6 million a year it is costing the city to operate the new road, and to several more million required to cover the debt for the parkway.
They called for a 10 cent per kilometre toll on the expressway – something that a 2004 consultant study calculated would generate a net revenue of about $14 million a year. That would mean drivers of the eight kilometre parkway would pay 80 cents for the privilege – exactly a third what HSR users are now paying in cash fares for each ride they take.
The idea was not taken up by council.
At the end of last month, the user pay philosophy got a third test drive at city council, this time in relation to the $3 million purchase of some lands at the airport.
Airports collect a passenger tax for airport improvements so it was suggested that the private operators of Hamilton's airport should do the same.
There was a fierce debate and that user pay suggestion went down to defeat, in an 8-8 tie vote (tie votes lose). The taxpayers will be footing the $3 million bill.
The toll issue didn't come to a vote since it had only been recommended by citizens, so we don't know exactly how the council would have divided, but we do know that councillors Tom Jackson and Sam Merulla were outraged by the idea that expressway users should have to pay for the privilege of driving on it.
Jackson also voted for the fare hikes, while Merulla voted against them. The two of them divided the opposite way on the airport passenger fee – Merulla in favour of a user fee and Jackson opposed.
Like Jackson, Lloyd Ferguson, Maria Pearson, Fred Eisenberger, Dave Mitchell, Margaret McCarthy, Terry Whitehead and Rob Pasuta all voted for increased user fees for HSR riders, and against increasing them for airport users.
Bob Bratina, Brad Clark, Chad Collins, Scott Duvall and Brian McHattie took the opposite position – voting against more user fees on the buses, but for them on airplanes.
Bernie Morelli was absent for the transit vote, but supported user fees for airline passengers. Russ Powers voted for a fare hike, but also argued for user fees at the airport.
But there is an underlying consistency here.
Each of these examples, of course, has an environmental twist to it. Raising HSR fares obviously hurts the environment by encouraging more people to drive cars. Adding tolls to an expressway has the opposite effect, hopefully encouraging some of the drivers to use greener alternatives.
Note that the environment was the loser on both these issues. Then when it came to raising the cost of flying, one of the most environmentally damaging activities an individual can do, the environment again played second fiddle.
So on these three issues, despite being all over the map on the alleged "principle" of user pay, the councillors were remarkably consistent with respect to the environment.
Eisenberger, Ferguson, Jackson, McCarthy, Mitchell, Pasuta, Pearson and Whitehead consistently took the anti-environmental position.
Bratina, Clark, Collins, Duvall, McHattie, Merulla and (apparently) Morelli consistently voted green.
Russ Powers took a consistent position in favour of user fees, irrespective of the environmental consequences.
Of course, that's just three examples.
By g. (anonymous)
Posted March 26, 2008 04:55:16
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By GQ (anonymous)
Posted March 26, 2008 08:07:14
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By serious (anonymous)
Posted March 26, 2008 08:30:43
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By BrianE (anonymous)
Posted March 26, 2008 10:05:26
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By Rusty (registered)
Posted March 26, 2008 11:02:11
I hardly think Don was 'twisting' anything here... he has made some general - admittedly isolated - observations about the environmental impacts of these council decisions, which are indisputable. Why would Don highlight the environmental impacts and not examine the business or other related impacts? Well take a look at his profile - linked at the top of the page - and you will see. There's nothing subversive about any of this. Every RTH writer (and, in fact, every journalist in the world) has an element of bias in what they write and how they write. We write based on what we know and what we feel is important. It's up to the reader to take everything in context.
With respect to serious' comments, I agree that the business aspects of the decisions referenced are other important factors. But the environment is at least equally important.
One element that is striking in this article, is the shear weight of favour that road building and airport expansion seem to receive from the tax payer. For road usage in particular the costs are way bigger than any transit 'subsidies' - I love that word! Why do we not refer to road taxes as 'subsidies'...? - and yet we pay no user fees.
Surely the central question is: Why should one group of transit users pay user fees and another be subsidized so heavily?
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By GQ (anonymous)
Posted March 26, 2008 11:27:02
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By Serious (anonymous)
Posted March 26, 2008 11:51:53
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By GQ (anonymous)
Posted March 26, 2008 13:03:25
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By Serious (anonymous)
Posted March 27, 2008 08:07:54
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By seancb (registered) - website
Posted March 27, 2008 08:19:38
Serious,
You don't want him to bike (it's disgusting) and you don't want him to drive (it's hypocritical). You just wrote an entire paragraph of presumptions (over half of your comment in fact). We get it. You disagree with his extrapolation regarding "voting for or against the environment". But for you to claim that you are not attacking the author personally is laughable at this point.
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By GQ (anonymous)
Posted March 27, 2008 11:14:58
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By Serious (anonymous)
Posted March 27, 2008 16:27:49
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By peter (anonymous)
Posted March 29, 2008 10:46:51
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By Serious (anonymous)
Posted March 30, 2008 00:07:19
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Peter,
It's actually Don McLean. Different guy altogether. :)
Serious,
You're still attacking a straw man, misrepresenting McLean's argument so you can refute it more easily.
As I read it, McLean is making two related arguments:
In a series of important policy decisions with significant environmental ramifications, a group of councillors consistently voted for the option that harms rather than helps the environment.
Despite professing to support a "user pay" approach to policy decisions, these councillors applied such reasoning only selectively, citing it for transit yet dismissing it for the expressway and the airport.
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By Serious (anonymous)
Posted March 30, 2008 17:30:10
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Serious,
You mention "flimsy logic", but in this statement - "How can supporting a rate increase at the fare box, in order to improve bus service, harm the environment?" - you naively accept the flimsy logic that the fare increase will actually improve bus service.
The empirical fact, established conclusively by all the available data, is that raising fares reduces transit use. Public Works knows this (they acknowledged as much in their presentation to council but unlike previous fare hike recommendations, they neglected to project actual ridership declines), and anyone on council who takes the slightest interest in the issue knows it as well.
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By serious (anonymous)
Posted March 31, 2008 08:57:10
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Serious,
The Affordable Transit Pass Program in no way reverses the effects of the increase.
In any case, the people who stop taking transit as fares go up are those who have other options, people who take transit by choice, not necessity.
You seem to see transit merely as a subsidy for the poor, as do those councillors who voted for the fare increase / transit pass subsidy. That in itself is part of the problem.
"to suggest ... that one is anti-environment based on that single (and complicated) vote"
First, it's not that single vote. This article actually discussed three entirely separate votes (all of which are related in that they are potentially subject to a "user pay" argument and all have significant environmental ramifications). You have chosen to focus on just one, yet you accuse me of "selective information sharing".
Second, it's not a complicated issue. Again, the economics are quite simple: raise fares, and ridership goes down. If city council was really committed to increasing ridership, improving air quality and so on, they would have no difficulty making a decision to hold or reduce fares.
Instead, they're committed to the principle of increasing ridership and improving air quality as long as that doesn't require an actual commitment of resources. On the other hand, the same councillors managed to find the resources to subsidize a land purchase so we can publicly subsidize air transport.
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By Serious (anonymous)
Posted March 31, 2008 11:28:04
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By highwater (registered)
Posted March 31, 2008 12:26:02
So because staff recommended it, it doesn't impact negatively on the environment?
And since when are votes on transportation policy separated from the environment by six degrees? It's difficult to think of another issue that is more intrinsically related to the environment than transportation.
The essential point of Don's argument is that votes have consequences, and votes on user pay as it relates to transportation policy, have consequences for the environment, no matter how pleasant it is to imagine otherwise.
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By serious (anonymous)
Posted March 31, 2008 13:10:33
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Serious,
You write, "I could have made and did in an earlier post the same argument for the other examples given by Don"
Except you didn't. You merely concurred with City Council that the environment is not enough of a priority to make it a determining factor in policy decisions. As I responded above, not worrying about the environment when you make political decisions is anti-environmental. As highwater points out, "It's difficult to think of another issue that is more intrinsically related to the environment than transportation."
You also write, "You yourself reference staff reports in terms of the deleterious effects on transit of fare increases...but fail to acknowledge that it was staff who recommended these same increases. So, really, you can't have it both ways."
I don't need to reference staff reports on the deleterious effects of transit fare increases. All the evidence from every study on transit fares makes this relationship abundantly clear.
What I pointed out is that even staff acknowledge this fact, though this time they neglected to project actual ridership declines (in previous recommendations, they had included ridership projections).
In any case, your point here is nothing but a red herring. The very problem is that council and staff have not made gains in transit ridership or improvements in air quality or reductions in GHG emissions enough of a priority to actually do something about it.
As I wrote last year around the time of the vote:
"Ultimately, Public Works is constrained in what it can do by the budgets it receives from Council. Now, this is something of a chicken-and-egg problem, because staff tend to ask for what they think Council will approve, and Council tends to make budget decisions based on what staff recommend." http://raisethehammer.org/article/670
You are refusing to see the recurring pattern in how Council makes decisions. Here's another example of that pattern at work:
http://raisethehammer.org/blog/864
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By Serious (anonymous)
Posted March 31, 2008 13:33:01
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Serious,
I'm not being dismissive. Don has argued that it is anti-environment to make policy decisions without caring what the environmental consequences are. Your response has been:
The bottom line is that for a city government, the biggest impact it can have on the environment is how it makes transportation and land use decisions. How the city invests public money in transport infrastructure and zones land use has a huge impact on how and where people choose to live and work and how they get around.
Cities that invest the most in fast, convenient transit, density, mixed use, and so on create urban environments with the lowest per capita energy use and air pollution.
Cities that invest the most in highways, airports, and single-use low density zoning produce the highest per capita energy use and air pollution.
It's really that simple. The contortions to which you've subjected this straightforward, well-supported argument leave me at a loss to understand just what it is you're actually getting at.
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By Homo Sapiens (anonymous)
Posted March 31, 2008 15:53:40
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By Homo Neanderthalis (anonymous)
Posted April 01, 2008 08:01:40
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By trey (registered)
Posted April 02, 2008 08:25:30
The RedHill is turning into a local road -- access for the upper Stoney Creek residents to the QEW. In that case it should have tolls.
If was used regionally for jobs like it was pitched, then I could see it paying for itself without tolls. But that is not the case. 90% of Hamilton residents will never use it or maybe once or twice a year, but 100% of Hamilton residents paid for it, that's nothing but a subsidy.
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By arienc (registered)
Posted April 05, 2008 09:56:20
Interesting site here...travelling on a typical Airbus A320 flight actually uses less fuel per person, than if that same person travels in a Smart car.
Add a passenger, however and the Smart wins.
And among the least energy-efficient modes of travel...cruise ships and car ferries.
http://strickland.ca/efficiency.html
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By Homo Sapiens (anonymous)
Posted April 05, 2008 15:49:52
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By highwater (registered)
Posted April 05, 2008 21:41:24
HS, do tell. Please explain how this is the best thing that has happened to this city in years. Can we expect a big increase in our tax base next year?
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By Homo Sapiens (anonymous)
Posted April 05, 2008 22:35:58
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Homo Sapiens,
Are you aware that the city has projected zero percent assessment growth for 2008? The biggest demand for industrial land in Hamilton these days is from property developers who want to buy industrial lands and convert them to commercial use for big box centres.
It may be too early to state that the RHVP has been a failure at economic development, but it certainly seems significant to me that all the companies that might have been interested in moving to Glanbrook knew when the highway was scheduled for completion but chose not to start building to coincide with its opening.
I can only think of one major project that has timed its construction to coincide with the highway: Summit Park, the billion dollar residential development made possible by the construction of RHVP and built by a home building company that illegally over-contributed in 2003 to politicians who supported the highway.
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By Serious (anonymous)
Posted April 08, 2008 08:05:22
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Serious,
Charming as always. :) I've posted some reflections on the piece here:
http://raisethehammer.org/blog/965
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By Jovial (anonymous)
Posted April 08, 2008 16:33:19
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By Jovial (anonymous)
Posted April 09, 2008 15:08:07
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By Serious (anonymous)
Posted April 09, 2008 17:57:51
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By Ted Mitchell (registered)
Posted April 12, 2008 15:25:57
There have been a lot of drawn out arguments on this site, but bookmark this one as an example of how anyone can still be so Serious when he has been so annihilated from several directions of argument. Pit bulls are far less tenacious! Run for office?
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By Serious (anonymous)
Posted April 12, 2008 15:33:41
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By Unserious (anonymous)
Posted April 13, 2008 23:13:49
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By paul (registered)
Posted May 15, 2008 21:37:14
Lets say we took all the cars off the road who would pay for your dreams then?
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By Frank (registered)
Posted March 25, 2008 14:04:03
Glad Chad Collins is my councillor! On the issue of climate change, take a listen to the show Counterpoint on ABC radio titled "Climate Change". Quite a compelling argument.
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