Ontario drivers covering most infrastructure costs, report suggests

Ontario motorists are covering between 70% and 90% of the costs of maintaining the road network through fees and taxes, according to a new report funded by CAA South Central Ontario.

“Motorists in Ontario meet at least a large portion of the costs that they impose on the road infrastructure—and in major urban areas probably much more than those costs,” says the report, completed by the Conference Board of Canada.

“If we look at the total cost of driving, including vehicle costs, cost recovery will tend to be closer to 100 per cent,” it notes.

In the Greater Toronto and Hamilton area, road users also “more than cover the full costs of construction, maintenance and policing,” CAA suggests, based on the report’s conclusions.

CAA says that motorist also pay through other charges not including in the Conference Board’s formula. For example, it says that the total revenue on the sale of new vehicles purchased by Ontario households is estimated to be $15.76 billion, with generating an additional $1.81 billion in HST revenues.

“This comprehensive study sheds new light on the common misconception that road users in Ontario are heavily subsidized,” Teresa Di Felice, director of government and community relations at CAA SCO noted in a statement.

“Before any decisions can be made about new revenue tools (tolls, taxes and increased fees), it is essential to understand who pays for our road network,” she added.

CAA SCO has advocated that the province establish dedicated funding for road infrastructure to address critical issues around gridlock.

“As we talk about the need for improvements to transit and infrastructure, we must work to mitigate current and future gridlock while also looking at ways to maximize the efficiencies of our existing road networks,” Di Felice noted.

“In addition, the scope of this research highlights a significant need for all levels of government to collect and have better access to data to guide future policy development.”

The Conference Board will release another report on how these findings should govern infrastructure policy.