Toronto gives extra streetcar funds green light

Toronto city council approved anemergencytransit funding planon Friday to providean extra$417 millionto secure a contract with Bombardier to replace the city's fleet of aging streetcars.

City councillors held an extraordinary meeting to debate Mayor David Miller's proposal ofshifting and reallocating the funds that were earmarked for other transit projects in the city in order to complete the purchase of 204 light-rail vehicles.

In a release Friday afternoon following the meeting, Millercalled the plan a "made-in-Ontario solution" that will generate thousands of manufacturing jobs, boost the economy and generate millions of dollarsin tax revenues to the provincial and federal governments.

The city was left scrambling after the federal government said it wouldn't be contributing about $400 million to the $1.2-billiondeal believed to be the biggest streetcar order in the world.

The reason, Industry Minister John Baird has told the city, is that the contract with Bombardier doesn't fulfil the requirements of the government's infrastructure programbecause it doesn't create jobs in Toronto within two years.

The city and the provincial government have each committed approximately $400 million to the project.Toronto will now be responsible for Ottawa's share of the money, making its total contribution $836 million.

The contract with Bombardier, whichis tobuildthe streetcarsat its Thunder Bay,Ont., plant,was to expire on June 27 if the money wasn't in place.

The debate over the new proposal was held at Toronto's Metro Toronto Convention Centre not City Hall to avoid any confrontations with striking municipal workers.

At the meeting, several city councillors hammered the mayor about how the city came to be in this position, just hours before the deal is set to expire.

"This is no way to run a city government and make a decision of this importance," said Coun. John Parker.

Coun. Michael Thompson wanted to know why Miller couldn't extend the deadline.

"Why would you not have asked whether or not there is an opportunity to extend the closing date so to afford you the time to work with the federal government to ensure that funds could be made available?"

Miller said he didn't ask because the contract is between the TTC and Bombardier and Toronto, he said, can't risk losing the contract.

"We're risking the future of that plant in Thunder Bay.We're risking our reputation as a city with the people of Thunder Bay and the people in the parts suppliers that work all around Toronto.And we're also risking the future of our public transit system."

Miller said if council didn't approve the shift in funding, the city would not only lose the bid,but would need to go through the tender process all over again, which would add millions of dollars to the price tag.