+34
Conservative MPs are calling for the immediate cancellation of the Alto high-speed rail project following a report by the Parliamentary Budget Office that estimated construction costs could reach up to $113-billion. This figure is significantly higher than the government's initial forecast, prompting critics to argue that taxpayer funds would be better spent improving VIA Rail. Transport Minister Steven MacKinnon stated that the government welcomes the PBO report and will continue to review the findings while emphasizing the need for strong project management to avoid cost overruns.
Feds ‘should run as fast as’ they can from Alto project, say opposition MPs, as PBO estimates construction alone could cost $113-billion 'There is no remotely believable scenario under which Alto will break even.
So, the best thing to do is to stop spending taxpayer dollars on it,' says Conservative MP Scott Reid. Transport Minister Steven MacKinnon says the government 'welcomes' the recent PBO report on the Alto high-speed rail project and would 'continue to review the report.
' The federal government should “re-evaluate” the Alto high-speed rail project and instead consider improving the VIA Rail, say opposition MPs, as Canada’s budget watchdog warns good project management will be “essential” to avoid cost overruns after a recent report found the build alone could cost up to $113-billion—roughly 25 per cent more than the government’s initial calculations.on the construction cost of the government’s planned Alto high-speed rail project revealed that the project’s Toronto-Quebec City corridor could cost between $75-billion and $113-billion, a higher range than the government’s initial $60-billion to $90-billion forecast.in an interview that, based on international experience, the PBO sees “a general alignment with the government’s initial estimate,” and that their own estimate overlaps with that range.
She noted, though, that the feds’ projections were informed by an engineering study, whereas the PBO’s numbers are based on an economic analysis of past projects, reflecting “risks a little bit on the high side. ”“Good project management and planning is really essential to avoiding the experience of the U.S. and U.K. The government has taken important steps in that regard, and the proof will be in watching that play out to see if it stays closer to the baseline estimate, or what are the risks to get into those kind of escalating costs,” she added.
, Transport Minister Steve MacKinnon said the government “welcomes” the PBO report, and that it would “continue to review the report and incorporate relevant findings as project planning progresses. ” If the project were to go ahead, the line would be Canada’s first high-speed rail network, running approximately 1,000 km from Toronto to Quebec City, and reaching speeds of up to 300 km/h, cutting current travel times in half.
Alto, the Crown corporation owned by VIA Rail and the public partner that will run the project, has said it will create more than 50,000 jobs over 10 years, serve 43 million passengers annually, and contribute $24.4-billion to Canada’s GDP. The PBO report says basic geographic realities such as the length of the route and the use of tunnels are major construction cost drivers, and that international examples show that each additional kilometre of tunnel would add $169-million to the total cost of this project.
According to the report, Canada’s HSR project planning and construction will be similar to other, past European high-speed rail projects as opposed to those in the United States or the United Kingdom where challenges related to land acquisition, permitting, and project delivery led to significantly higher costs.
“While Canada’s legislative framework is intended to avoid the major cost-overrun drivers we’ve seen in comparable American and British projects, Canada’s route geography has some significant cost escalators—most notably tunnelling in and around Montreal, and the complexities of the Canadian Shield portion,” Ryan said in an Oct. 1 press release. The PBO estimates there is a 2.5 per cent chance that the cost of building the HSR alone could reach or exceed $243-billion.
The Hill Times photograph by Andrew MeadeThere is no remotely believable scenario under which Alto will break even. So, the best thing to do is to stop spending taxpayer dollars on it,” he said.
“The government should not walk away from Alto. It should run as fast as it can. ” Reid said so far there are no plans of a parliamentary committee study on the project, but that there should be. Another Conservative MP, Michael Barrett, whose riding of Leeds–Grenville–Thousand Islands–Rideau Lakes, Ont.
, is on the suggested rail corridor, toldthat, given the higher estimated price tag, he will “continue to oppose this costly and disruptive Alto plan. ”The Hill Times photograph by Andrew Meade “Canada needs investments in transportation, but I believe we should focus on improving the VIA Rail infrastructure we already have, with more frequent trains, improved reliability, better on-time performance, and stronger connections for the communities that already rely on the system,” he said.that while high-speed rail has the potential to “connect communities, create good jobs, reduce emissions, and be a cost-effective transportation alternative,” the PBO’s findings show “yet another example of the Liberal government’s lack of due diligence, underestimation of costs, and poor consultation.
” McPherson said MPs and the public have been asking for more details on the Alto project, but that the government has not been “forthcoming” with their answers to affected communities. The Hill Times photograph by Matthew Merkel “It seems like, at every turn, this government is rushing through major projects with incorrect budget estimates, lack of consultation and transparency, and without due diligence—and that’s not the way to build for Canada” she said.
PSG Senator Andrew Cardozo said he has “mixed feelings” about the high-speed rail project, arguing that while it would be “great for the local economy and people who live in the National Capital Region,” there are “downsides” to it, such as the “urban-rural divide that is rising” and the politics of it all, with federal Conservatives and provincial Parti Québécois—which is currently leading in the polls ahead of Quebec’s Oct. 5 provincial election—being “The high cost is just one problem area, and the PBO figures are sadly probably not the highest estimate we will see over the years ahead,” said Cardozo.
“When this mega-project is causing this passionate divide, it is time for us to take a breath and re-evaluate the project. As rural residents see it, this is an expensive project that is seriously disruptive for them, which benefits only urban dwellers,” he added. Cardozo argued that the government should re-consider “high-efficiency rail” rather than high-speed rail, with more existing VIA Rail trains fixed up and running faster.
“It’s not too late to do a deep assessment on fixing up VIA to be a world-class high-efficiency rail, and then comparing the financial and social costs to ALTO,” he said. The PBO reported suggested changes included in bills C-5 and C-15 could help mitigate the types of governance, legal, and project management risks seen in the U.K. and U.S., like in the case of land appropriation.
On June 10, a group of farmers and land owners—many from areas where the rail line is roughly expected to pass—protested the Alto project on Parliament Hill. They called for the federal government to scrap the project, arguing it’s asking the taxpayers to support a $90-billion project without offering any core details about it, such as the final route, potential cost overruns, or long-term economic benefit to the public.
Erin Durant, a litigation lawyer and one of the protesters whose home is located in the suggested corridor, said she is “surprised that the PBO has come up with a higher number. ” Durant has a Substack called “Alto Files” where she writes about the HSR.
“I have been attempting to get cost transparency by filing requests, and the cost is consistently redacted, even though a public number has existed for more than a year. I am glad the PBO is looking at the financials because I’ve given up on trying,” she said. Durant argued the government should not go ahead with the project as currently designed due to the high costs.
“The government should not be subsidizing a travel mode that will be used by those who can most afford it. The plan also provides no benefits to communities between stations or Canadians in other provinces,” she said. The PBO’s Oct. 1 report is the first of a planned two-part assessment of the project. The second part will look at operational costs and whether the projected number of passengers is sufficient to support it.
Reid said he has questions about how realistic the projected ridership numbers are, and how much Alto will be able to charge per ticket.
“The number of tickets times the ticket price equals revenue. This number has to be pretty big to pay off those massive construction costs, plus all the interest on those billions , which will be carried by Canadian taxpayers for decades,” he said. By entering your email address you consent to receive email from The Hill Times containing news, analysis, updates and offers.
Alto, a Crown corporation owned by VIA Rail, is the public partner that will oversee the high-speed rail project. The Hill Times that the PBO used a different methodology, but despite that, their estimated cost range “is similar to and consistent with Alto’s working estimate. ” “The report confirms the relevance of the approach adopted for Alto: a pragmatic process that reduces uncertainty before major investment decisions are made.
It also recognizes that the regulatory measures adopted by the are helping create the conditions needed to deliver the project and its benefits within parameters that are more comparable to international best practices,” Socket said.
“This independent report also suggests that some of the more pessimistic scenarios raised in the public debate are not supported by international experience,” she added. Socket said Alto would present a “rigorous business case” once the development phase is done, and the route and cost estimates are confirmed, “before any final investment decision is made. ” An initial version of the business case will be released in the first half of 2027, she said.
Poilievre’s move to appoint candidate in Brantford makes high-stakes byelection more ‘challenging’ to win, says former Conservative MP McColeman: ‘that’s really the gut punch’ Trump’s a ‘tough hand to play,’ but Carney should not accept any trade deal that’s ‘politically difficult’ to sell in Canada Feds ‘should run as fast as’ they can from Alto project, say opposition MPs, as PBO estimates construction alone could cost $113-billion
Alto High-Speed Rail Parliamentary Budget Office Canadian Politics Infrastructure Spending Cost Overruns
Canada Latest News, Canada Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
PBO Says Alto High-Speed Rail Could Cost Up to $113 BillionThe Parliamentary Budget Officer estimates the Alto high-speed rail line between Toronto and Quebec City could cost between $75 billion and $113 billion, well above the federal government's $60 billion to $90 billion estimate.
Read more »
Toronto-Quebec high-speed rail project could cost more than Ottawa’s estimate, PBO saysParliamentary watchdog projects construction could cost up to $113-billion, higher than Alto’s preliminary figure
Read more »
Canada's Liberal Leader Mark Carney faces challenges as MPs step down, trigger byelectionsByelections have been held in recent weeks, with Liberals sweeping three ridings in Toronto and flipping a Conservative seat in Quebec. The latest byelection can be called as late as February 11, 2027, but the prime minister has yet to call for a new election.
Read more »
Budget watchdog says Alto rail construction could cost more than Ottawa predictsOTTAWA — The federal budget watchdog says construction of a high-speed rail line between Toronto and Québec City could cost more than Ottawa's estimate.
Read more »