With the explosion in the price of fuel in recent months, school transporters here say they are running at a loss and are asking the government to restore the compensation that made it possible to absorb part of the bill.
“We have seen prices soar for three months,” worries Luc Lafrance, CEO of the Federation of Bus Carriers. “Despite the electrification, 90% of the fleet is still on fuel,” he recalls, fearing that some carriers will be forced to cut services.
Hecatomb apprehended
” Honestly, […] he has to give us money, because we are all going to die or there will be no service in September, ”says Bernard Roy, president of Autobus Dufresne.
The Federation is currently in discussions with the Ministry of Education on this subject and other financial aspects, since several school transportation contracts across the province are coming to an end.
These agreements are usually for a term of five years and are indexed to the Consumer Price Index. It is therefore more difficult to adjust the figures, if necessary, to absorb a rise in the price of diesel.
It was only last year that the Ministry of Education decided to cancel the subsidy that provided carriers with some stability when the price of diesel started to play yoyo.
Each year, a pre-tax rate was set and Quebec compensated businesses for the difference from an average monthly price. This aid could amount to several million dollars a year.
According to Mr. Lafrance, whose organization has more or less 620 members, Quebec withdrew this financial boost because it went against its new environmental targets. The government hopes to have the province’s school bus fleet 65% electric by 2030.
To mitigate the impact of this change, Quebec has however implemented a transitional financial measure, i.e. a fixed amount that covers a smaller portion of the costs. This solution involves school service centres. The industry fears that this aid will also disappear.