(Quebec) The Legault government intends to absorb approximately 70% of the “cyclical” deficit of the transport companies of Greater Montreal, estimated at 284 million for 2025, according to the Regional Metropolitan Transport Authority (ARTM), has learned The Press. Aid of around 200 million would thus be on the table during the meeting between the Minister of Transport, Geneviève Guilbault, and the mayors this Monday.
The ARTM is demanding double: 421 million, according to a letter sent to the Minister of Finance, Eric Girard. In particular, she is planning a reduction in services if her request is not granted.
On the eve of the talks, a war of numbers is playing out behind the scenes. It is reminiscent of the one which opposed the same protagonists last year on the subject of the financial hole of transport companies for 2024.
The parallel is even more striking when we note that the government then decided to absorb 70% of the shortfall. He intends to apply the same recipe this year, according to our information.
Quebec wants to offer aid only for the share of the deficit of transport companies attributable to the COVID-19 pandemic. This is what he calls the “cyclical” deficit, the one resulting from the drop in ridership and leading to a fall in fare revenue for transport companies. The government considers that it has a responsibility to reduce it.
This “cyclical” deficit should be distinguished from the “structural” deficit, the responsibility of which lies solely with transport companies, according to the government. Among other things, they must clean up their expenses to eliminate it, he argues.
In Greater Montreal, the total operating deficit amounts to 561 million, calculates the ARTM. This is the shortfall of the transport companies of Montreal, Laval, Longueuil and exo (which operates the commuter trains).
The ARTM estimates that around half of this sum, or 284 million, represents a “cyclical” deficit. This is the one for which the government intends to provide aid representing around 70%, or around 200 million dollars.
In the office of Minister Geneviève Guilbault, we limit ourselves to pointing out in a written declaration that the government’s “logic” since the pandemic is to “make up part of the fare losses due to the drop in ridership in public transport”. “This is still what guides our reasoning”, we can also read there.
In a memorandum submitted in February to Minister Eric Girard, before tabling the budget, the ARTM quantified its request: $421 million.
Last year, Quebec paid aid of 238 million to transport companies in Greater Montreal. He estimated their deficit at 337.9 million – the ARTM criticized him for not taking into account the entire shortfall of 532 million.
Reduce services, raise prices
In order to erase its total deficit of 561 million for 2025, the ARTM is juggling different scenarios in addition to asking for help from the government: increasing fares, municipal taxes or registration fees. Service reductions are also being considered. The more government assistance, the less painful the choices will be.
The ARTM launched work in 2023 to “optimize resources” in order to reduce expenses. Certain services could be shared between transport companies.
For her part, Minister Guilbault requested an independent audit of the performance of transport companies – a contract worth $835,750 awarded to the firm Raymond Chabot Grant Thornton & Cie in February. There could be possible solutions to resolve their financial problems. The results of this audit are expected in September.
“Seeker”
This Monday’s meeting between Geneviève Guilbault and the mayors responsible for Quebec transport companies takes place at a time when relations are tense.
The minister angered mayors, including Valérie Plante of Montreal, by declaring that “managing collective transport and transport companies […] is not a mission of the State. The mayor of Quebec, Bruno Marchand, said that he no longer had confidence in her.
Prime Minister François Legault subsequently added fuel to the fire: for mayors, “it is always easier to beg in Quebec than […] to clean up their expenses,” he asserted. The mayor of Lévis, Gilles Lehouillier, returned the criticism by describing his government as “necessary” towards Ottawa.
The six transportation companies located outside Greater Montreal (Quebec, Lévis, Gatineau, Trois-Rivières, Saguenay and Sherbrooke) have an anticipated operating deficit totaling just over 60 million for 2025.
The week promises to be busy for Geneviève Guilbault. She must also table her bill to create a transport agency, Mobilité Infra Québec, primarily responsible for managing collective transport projects.