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Originally Posted by swimmer_spe
Still does not mean that a zero subsidy would be applied to the route.
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Actually it does. It's really simple. If revenue > operating costs, no subsidy required. The rest of VIA will still need to be subsidized. But the Corridor won't. And that's a huge part of the sales pitch for this project. If you're suggesting that this is not true, we have huge issues at that point....
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Originally Posted by swimmer_spe
I am a fan of being told how you will pay for it. I am tired of the promises and tax cuts. That is not a smart plan. All of the parties do it to get elected because if they did not promise new spending and cut taxes somewhere they would never get voted in. I would see no issue with higher wage earners, such as myself to pay an extra 5-10% taxes so that we can afford to have nice things.
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I agree with you. But most Canadians don't agree with us. It's time to recognize reality. VIA doesn't have unlimited resources. And that is not going to change for the foreseeable future. Demand > Resources, means that priorities decide which projects get funded and services are offered. So until VIA's funding structure changes, there will be no new substantial service offerings, unless the provinces are willing to pony up subsidies (like what happens in the US with Amtrak).
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Originally Posted by swimmer_spe
Or, another option would be to price each route such that the subsidy is the same percentage as a minimum. That kind of math would mean knowing the break even point of each train and what rate would cover it.
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You can go through VIA's financials and work out the per passenger subsidy and $/pax-km. I believe Urban_sky has shown this before. If not here, than Urban Toronto. Using those metrics, every route is more subsidized than the Corridor IIRC.
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Originally Posted by swimmer_spe
After this mess is over, we are going to be so deep in debt that the days of tax cuts are hopefully gone. In the 1960s, the highest earners paid 70% taxes, and they didn't complain.
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More than likely we will see service cuts and tax increases. Which is all the more important for VIA to get data-driven prioritization in place. I am hoping that HFR can go fast enough that the reduction in Corridor subsidies, after launch, can offset cuts in total subsidies to VIA.
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