Preville on Politics

Privatizing the TTC—how could it be any worse than what we’ve got?

Posted on May 5, 2008 by Philip Preville

I’m gone for the rest of this week, and when I come back we’ll have a brand-spanking-new, totally redesigned—and renamed!—blog to launch in this space. But before I go, I need to point out two items. First, go peek at the very funny separated-at-birth photos of Toronto Mayor David Miller and London Mayor Boris Johnson over on Doug Bell’s blog, Spectator. Second, read Dr. Gridlock’s column in this morning’s Globe, in which he examines the possibility of privatizing part of the TTC, and in which he gets a key component of the logic backwards.

In defence of keeping the TTC publicly owned, he writes that “the TTC—which recovers an almost unheard of 75 per cent of its costs from fares—is already more efficient, and less subsidized, than systems elsewhere that have sought out privatization to cut costs.” Yet this situation is precisely what would make the TTC attractive to private investors: minimal dependence upon subsidy, efficient operations and an endless supply of hostage-like customers. Indeed, in so many ways, existing conditions on the TTC resemble exactly what you’d expect from a privately owned system: expensive, overcrowded and only passably clean—designed to wring as much as possible from every dime dropped into the fare box.

I have never been a supporter of privatization of public transit, but given the current state of affairs, I’m left with two questions. One: Just what benefits do we reap from public ownership at this point in time? And two: What do we have to gain from refusing to at least study private ownership?

Categories: General, Transit, City Hall
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Stephen Montgomery May 5, 2008 at 10:59 a.m.

We've reached a point were massive growth of public transit is required and all we can entertain is affording raises for our transit employees with contract clauses that make professional athletes look modest. No tunnels are being excavated for new subways, plans for a Union Pearson Link are still on the shelf. We are going full tilt in the opposite direction of growth.

If the massive upheaval of privatization is the only way to communicate with this union and get them on board with making this city great in the coming decades, then it has be honestly investigated. It is our local government's duty to as managers of the public purse to offer us a better alternative for our money than what we have recently seen.

How much longer will City Hall sleep on this?

Transit rider May 5, 2008 at 1:45 p.m.

The benefit of a public system is a transit *network*. One of the fundamental reasons the TTC was formed was that the private rail operators wouldn't run anything that wasn't profitable. There is absolutely no reason to believe the private sector's thirst for profit has subsided. In a privatized scheme, if the money-losing routes weren't cut all together the service levels would drop dramatically in favour of the money makers.

...I'm not sure if this makes your point or mine but the TTC isn't as efficient as they claim. The report on the TTC's efficiency that they like to trumpet only looks at how much service the TTC provides with its public subsidy. So the 75%ish percent of the money that's collected from the fare box isn't included in the efficiency calculation. If the fare box were included, I'd bet you anything the TTC ends up closer to other big city transit systems on efficiency rating.

Brent May 5, 2008 at 11:25 p.m.

Transit Rider may be misunderstanding the efficiency calculation. The 75% figure refers to the revenue/cost (r/c) ratio, which is a standard measure of operating efficiency in transit agencies. Simply put, it is a calculation of total operating revenue divided by total operating cost (as opposed to capital costs) -- or how much of the cost of running the system is recovered through fares. It has no bearing on system size or how much service is provided using that 25% subsidy. On this measure, there are very few -- if any -- other North American transit agencies operating at this level of efficiency.

Then the question becomes, how much better could service be if the subsidy matched levels of most or all other major North American systems (say, the 55% to 65% range)... or, conversely, by how much could fares be reduced.

Mpav May 8, 2008 at 2:52 p.m.

Do it, bust the union and let them at least attempt to get better.

The TTC is 'efficient' only because it is a poor system, unkept and generally operating with no investment.

I would gladly pay more for a system that actually had a good subway network, was clean and safe, and actually had staff that gave a sh*t.

I have lived in 3 different major cities, all similar to Toronto and one thing that blows my mind is how poor our system is and also how rude and unhelpful TTC staff are.

Next time ask a tourist what they think of our TTC, 9 times out of ten it is negative.

Break the union, privatize the operation, and let us at least make an attempt to get better

Liz May 8, 2008 at 3:28 p.m.

I'm not a tourist but I'm not from Toronto either. I've been here 3 years having previously lived in Dublin, London and Hong Kong. I LOVE the TTC and whilst the strike meant I was unexpectantly house-bound, it's hardly a regular occurance. I consider my metro pass to be great value and, for the most part, find TTC staff to be as friendly and helpful as I am (ie sometimes very, sometimes not). My only complaint is that the subway needs to cover more of the city than it does currently but there seems no real chance of that unfortunately. In the meantime it's well worth my monthly $100.

mpav May 9, 2008 at 1:30 p.m.

Liz your standards are too low (by the way if you are single give me a call as I may be what you are looking for).

Sure the subway is great if your two points on are the subway line. My point is exactly that the subway doesn't cover nearly enough, and the TTC buses are poor.

Next time ask someone to tell you how to Take the TTC and enjoy some of Toronto's nicest spots - the beach, to Casa Loma, to the Ex, to the science centre...even a local would end up in scarborough.

Cheryl Duggan May 9, 2008 at 10:33 p.m.

Here's a lil somethin that I wrote the day the TTC took a walk.

TTC holding the city hostage

an almost ten per cent increase in fees
should have come with some public guarantees
with this fare hike
we promise not to strike
the TTC knows they have the power
to keep us guessing from hour to hour
whether or not it will be a working operation
or we have to find alternative transportation
they wait til we feel a deal has been reached
then park all the vehicles as if they've been beached
without notification or public support
with no one around to demand an accurate report
the TTC at this late stage
has left us with an empty fare cage
they walk in similar circles today
as the many zero's they find in their pay
its time to order them back to work
their responsibilities they do shirk
all their propoganda
for a monetary agenda
in their own video for "Worth A Million"
the health and economic benefits are explained
they claim to save the city billions
so who are they to complain
the TTC is an essential service
order them back to work and while your at it
teach them some basic skills
like rudimentary customer service
the TTC is a monopoly
where the only free ride
is for the employee
even if you have to stand
or even if you're late
a refund you can not demand
from the TTC to date
so much for "The Better Way"
no buses, no streetcars, no RT, and no subway
we all have to reroute our lives
at least for the rest of today

April 26, 2008

ed May 13, 2008 at 6:35 p.m.

the TTC is in the stone ages. They still have operators out on King and Queen with notebooks, logging streetcar tardiness.

Philip Preville

Veteran freelance writer Philip Preville lived much of his life in Montreal and Edmonton before he was lured, like so many Torontonians before him, by the promise of more work and a better living. A National Magazine Award winner and former Canadian Journalism Fellow at the University of Toronto’s Massey College, Preville writes Toronto Life’s politics column. He lives with his wife and one-year-old son in Riverdale, just close enough to the Don Valley Parkway that he can hear it when he steps outside his house—but just far enough away that it doesn’t keep him awake at night. On his office wall hangs a 1938–39 press pass belonging to his grandfather, Elias Gannon, who wrote for the Montreal Star.

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