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Canadian Funding for Highways - Case Study Example

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Canadians are exposed to an estimated $22 billion deficit in the Canadian National Highway System. The unavoidable by-product of this discrepancy is ever mounting obstruction for trade, tourists and commuters. At present, the busiest border crossings to the US hamper the free flow of goods and tourists, thus eroding the ability to compete and more over these actions worsen the already difficult set of circumstances faced by the travel industry…
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Canadian Funding for Highways
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Download file to see previous pages Although this alliance dates back in the history but still it represents a strong case for the betterment of the transport industry. As CTA is a coalition of regional trucking associations it represents an extensive cross-section of the trucking industry. There are about some 4,500 transport vehicles, owned re-operators, and industry suppliers who fall under this alliance. CTA has worked in lobbying on national and international policy, as well as authoritarian and governmental issues that affect trucking. The other industry that has had problems is the railway industry. The freight industry along with the domestic highway vehicles has suffered from the deficit making them incompetent in their respective industry.
Regardless of a very old policy on nationwide transportation the federal authority was proficient in completely setting it aside for the cause of reduced spending in the 1990s. This was achievable because the national transportation policy did not correctly identify the role of governments in the provision or administration of transportation infrastructure.
As the national decentralization of infrastructure was done during the 1990s and as inter-modal transportation has developed, the financial responsibilities between the public and private sector have become vague. Important transport accountability areas, such as airports or marine ports have been changed to private or non-profit organization. While others have been able to create entirely new economic responsibilities for the local body; for example, the movement from rail to road has augmented the provincial role in goods transportation.
Dating back to 1994, the federal curriculum review amplified the financial stress on regional and municipal infrastructure. In the mean time, provinces also decentralized local transport infrastructure to municipal and provincial bodies. This reforming of transportation has produced a hefty infrastructure deficit that needs consideration by all levels of government. Addressing the requirements of transport infrastructure can be managed in a more improved manner if the financial tasks, with suitable revenue streams, can be clearly outlined for all levels of the governing body in national transportation policy and supporting legislation.
A major reason for the inability of the national transportation policy is the breach between policy, legislation and execution. A widespread scheme of bridging this gap is the connecting of transportation policy and legislation to a venture approach or program funding. The most memorable example of this is the American model where central funding is coupled for compliance with rules and policies. For instance, highway subsidy eligibility depends on achieving the set environmental standards that replicate national policies.

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