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National Post - Oct. 7, 2006, Sat. - By James Cowan

Fixing gridlock would get the vote of big business
$1.8-billion cost: Taxes place second in survey of top municipal campaign issues

Gridlock, which costs Toronto businesses $1.8-billion a year, is the top municipal election issue for the city's business executives, according to a Toronto Board of Trade survey released yesterday.

Transportation and public transit concerns were named as election priorities by 37% of senior executives, according to the poll conducted by Strategic Counsel. In comparison, 22% said taxes should be the foremost issue and 16% said community safety.

"Gridlock affects our people's ability to commute to work and home again, and it affects their ability to move around the city to our clients efficiently," said Tony Gaffney, managing director of Accenture, a consulting firm. "Obviously, if they can't do that efficiently, it's a business issue for us."

Mr. Gaffney was among 100 executives interviewed for the survey. Each represented a company based in the Toronto region with more than 500 employees.

The Board of Trade estimates gridlock costs Toronto businesses $1.8-billion in lost productivity. The report comes as many Durham commuters find themselves without transit because of a strike.

Traffic congestion now affects all industries, not just those reliant on transporting goods, Mr. Gaffney said.

"People's time really counts," he said. "They need to be able to get to work on time, leave with ease and get to clients -- it's all critically important."

Glenn Stone, a Board of Trade spokesman, said the survey highlights the need for an integrated transportation strategy in Toronto. Public transit is important, but the congestion and condition of the city's roads must also be addressed, according to Mr. Stone.

"There's a recognition amongst the CEOs that there needs to be a strategic plan in place for the entire region and that will involve roads, highways and public transit," he said.

"You have to look at the big picture before you can decide we need to build a road or a new rail line."

Mayor David Miller said investments in public transit are the best way to reduce gridlock. Mr. Miller yesterday advocated expanding the city's transit system through the construction of streetcar right-of-ways and dedicated bus lanes.

"There is a concern about business being able to get around the roads and public transit is the answer to that," Mr. Miller said. "You can free up road capacity by building transit. You can free up the roads for business and you can free them up for more people."

Mayoral candidate Jane Pitfield argued public transit cannot fix all of Toronto's traffic woes and that a more balanced approach is required.

She said Toronto's commuters must be assured the Gardiner Expressway will remain standing despite a recently released report from the Toronto Waterfront Revitalization Corporation recommending it be demolished and replaced with a wide boulevard.

"Everyone wants to be the defender of public transit and it is important, but I think there is also a perception that the pendulum has swung too far in one direction and the city has become anti-car," Ms. Pitfield said.

But Mr. Miller said Toronto has begun to address its $235-million road repair backlog by adding $10-million to its maintenance budget this year.

The city now spends $130-million annually repairing its 535 bridges and 5,355 km of roads.

"The backlog in road repair has gone down for the first time in a decade," Mr. Miller said.

Despite the increased funding, it will take eight to 10 years for the overdue work to be completed.

While CEOs cited gridlock as their top concern, Mr. Stone said the poll also suggests that high business taxes remain a problem in Toronto. He noted one-quarter of respondents had moved jobs out of Toronto in the past year and 36% cited higher costs as the reason for their decision.

He said business property taxes are four times higher than residential rates in Toronto, compared with an average of two-and-a-half times higher in surrounding municipalities.

"You have a situation where you can literally walk across the street and see your taxes drop," Mr. Stone said.

jcowan@nationalpost.com


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