For readers outside the province of Saskatchewan, this requires a little explanation. In Saskatchewan we don't have Greyhound or Red Arrow running bus lines. In Saskatchewan, the government owns and operates the bus company and there is a actually a minister responisble for buses.
The bus company is doing terribly, and has been for years. In fact, it's losing around $20 million a year and this year they plan to lose even more. What's really funny is when our elected politicans start debating minutiae of running a bus system.
Check out this exchange:
Eldon Lautermilch, the minister responsible for STC, said the company expects the number of riders to drop this year as two special centennial programs will no longer be in effect.
"We're looking at some options right now to see what we can do to support seniors and young people with the operations," he said in an interview on Tuesday.
The Crown corporation is also budgeting for higher fuel costs in the year ahead.
Lautermilch said that while the company has increased efficiencies in recent years, the NDP government expects STC will lose money.
"We are expecting we are going to be subsidizing its operations because we're trying to provide service in areas that wouldn't otherwise be provided," he said.
Before 2003, the government subsidy to STC had been declining each year since it hit a high of $8.3 million in 1996.
Saskatchewan Party MLA Ken Krawetz said he's concerned about the upward trend in STC's subsidy.
"We have to look at changes. The buses that are currently used on many, many routes are old, they're built for when there was tremendous usage by people. What we're seeing now is that the freight that is being hauled is what's making money for STC and a smaller bus transporting 12 to 15 people pulling a trailer behind it can still provide that same service. So we need to have those kinds of studies, those kinds of experiments looked at," he told reporters at the legislature.
STC spokesman John Millar said the company already utilizes smaller buses and trailers but it must provide vehicles that will meet peak demands on each route.
3 comments:
The City of Regina is also giving STC some money. They have sold them the land for the new bus depot for $150k below market price and are planning on exempting $30k per annum for 5 years in property taxes.
While I support the running of the rural routes at a loss, as no private company would run the routes. I can not support the corporate welfare being handed out by the city.
The City of Regina's corporate welfare list is long and growing. Harvard/Hills receive millions per year in tax gifts. If a full collection policy where introduced, residential taxes could be cut dramatically and services increased and fees reduced.
I actually forgot about the taj mahal bus depot they are building in Regina.
As for no bus company going to small towns, that's false. Alberta and Manitoba have lots of small towns, yet they manage to get by.
Don't get me started on the Hills!
David, as someone who has used STC services over the years, I would suggest smaller buses. There is always empty space when I am on an STC bus. This is not Southern Ontario, where once on a ride from Hamilton to Toronto, it was standing room only on the bus.
I would opt for smaller buses, and an increase in frequency ONLY if the hauling of freight warrants it (STC ships quite a bit of freight around Saskatchewan).
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