Transportation projects in British Columbia will enjoy a shot in the arm from Ottawa's decision to share the federal gas tax with municipalities, says a prominent B.C. business association.

"It's certainly good news for local governments in B.C.," says Jock Finlayson, a senior economist with the Business Council of B.C., which represents about 200 large and medium-sized enterprises in various sectors across the province.

Finlayson estimates B.C. will receive $80 million in 2005-06 and $600 million over five years, based on 13 per cent of the $5 billion made available by Ottawa. (The 13-per-cent rate derives from B.C.'s percentage of Canada's total population.)

Municipalities have been fighting for years with the federal government for a share of the gas tax. Finlayson says the decision means the government is "locked in" to provide ongoing money for future transportation projects - a significant shift from "one-off" funding for major projects like the RAV rapid transit line.

Darcy Rezac

In addition to roads, bridges and rapid transit lines, the extra cash can be used for components such as HOV lanes (which are open to vehicles carrying more than one occupant), buses and bikeway paths and other efforts designed to reduce traffic congestion and protect the environment.

Meanwhile, business and tourism groups are also praising the recently unveiled provincial budget for helping to address transportation needs in Greater Vancouver and the rest of the province.

The province allocated $805 million to transportation projects this year, about even with last year, and doubled Tourism B.C.'s budget to $50 million from $25 million.

The praise comes in spite of growing criticism from residents, businesses and other stakeholders concerned about the province's handling of such projects as the RAV rapid transit line, the twinning of the Port Mann bridge and expansion of Highway 1 and the Sea-to-Sky Highway.

Darcy Rezac, managing director of the Vancouver Board of Trade, whose group gave the government an "A" for its budget, says the document does not contain any unexpected announcements regarding transportation. But he credits the provincial government for leveraging the federal government, municipalities and private sector to provide the funds necessary to build the RAV line and expand the Port Mann, Highway 1 and the Sea-to-Sky Highway projects.

During the NDP's reign in the 1990s, he claims, the government's "determined steps to curtail economic development and prosperity" resulted in an under-capitalization of transportation infrastructure.

But Rezac notes the Lower Mainland still needs more rapid transit. "It seems that we can't get anything substantial to happen in that area unless we have a big event, like Expo '86 and the Olympics," says Rezac. "That's how we got SkyTrain, which has been a huge success. That's how we're getting the RAV line, which we expect will be a similar success. That's how we're getting a better road up to Whistler."

He says there are two solutions to Vancouver's transportation woes - to get traffic moving and more people on rapid transit.

To do that, and still receive the funds that it needs for transportation upgrades, the region must boost its population and invest in new technology.

Mary Mahon Jones, executive-director of the Council of Tourism Associations of B.C. (COTA) says the Tourism B.C. budget boost will help the travel industry recover from the impacts of SARS, forest fires, 9/11 and other unforeseen calamities, and help to recruit, retain and train skilled employees leading up to the 2010 Winter Olympics.

She says the government is spending money on tourism because studies show the investment will bring in more in revenues. Citing Tourism B.C.'s annual report, she says the province earns $1.87 for ever dollar that it invests in tourism.

"We're doing really well right now in terms of government support and sorting out a number of things that we need to sort out (in order) to grow," says Mahon Jones.

Most of the transportation money will go to Vancouver-area major projects scheduled to be built in time for the 2010 Olympics. Doug McCallum, chairman of TransLink, which governs transportation projects in Greater Vancouver, says the money will benefit his region and the rest of the province.

"The government has recognized how important transportation is for the economy and to keep the economy (running), which in turn creates jobs," says McCallum. "That, I think, is the most important thing as we look out over the next 10 years. We have to create jobs for all the people moving here and for our residents and for their kids. If we build the economy, then those jobs won't be there."

During a Vancouver Board of Trade breakfast meeting last week, McCallum said his group is looking at expanding Sea Bus operations, as well as North Vancouver's bus depot, a Broadway connector rapid transit line in Vancouver and an expansion of the West Coast Express train line to Abbotsford.

Rezac adds that he also believes it is time to look at a third crossing between downtown Vancouver and the North Shore. "We can't postpone it forever."

He also favours more transportation projects that cater to increased housing development between West Vancouver and Whistler for the people needed to work on Olympic- related projects.

Increasing downtown density is also a priority. "We're an aging population, so it's a fact of life," says Rezac. "The fact is that not everybody retires and moves to a hobby farm. People are increasingly retiring and moving downtown to be with their children and working downtown. Take a look at Yaletown. It's a very nice, successful development. It's got a mix of business and residential."

The province is also providing $14 million to the development of alternative vehicles, through provincial sales-tax relief on the purchase of new hybrid gas-electric vehicles and the development a collection of hydrogen-fuel stations between the Canada-U.S. border and Whistler which is designed to develop a hydrogen economy.