The Vanishing Business Case for Regional Fare Structure

Anyone who deals with Metrolinx from the outside knows that getting information can be a real struggle, but every so often the veil of secrecy lifts, although not always intentionally.

The implementation of “regional fares” is supposed to happen in March 2024, but this will be on a fairly limited scale, at least according to anything published so far. The TTC will come into the same arrangement as the 905 systems with recognition of each other’s fares across the 416/905 boundary, and the reinstatement of a GO Transit cofare.

Like the elusive Toronto sun of recent weeks, a report appeared, and then disappeared on the Metrolinx website called Regional Fare Structure Initial Business Case Final April 2023. This is not a draft, but gives a sense of Metrolinx thinking on the subject and how little some of their fare objectives have changed over the years.

To be blunt, fare planning at Metrolinx has always eyed the Toronto subway as a “regional” facility and its riders as potential cash cows who will help fund other parts of the system. I wrote about this back in 2017-18.

A major problem with earlier proposals was that the Toronto subway was treated as a premium service, like GO, where riders should pay more for the speed and comfort compared to the surface system. This utterly ignored the fact that the TTC system is designed as a single network with subway lines as the backbone and feeder/distributor surface lines. The underlying reason for pushing up subway fares was to make the model revenue-neutral, in effect, to subsidize the elimination of extra fares for cross-border trips with more expensive subway rides.

That scheme would have seen any trip longer than 10km charged an extra fare, and that would have affected the vast majority of suburban commuters who already complained of long bus+subway trips to get to work and school. This idea appeared to die off, and with the ascension of the Ford government in 2018, nothing more was heard. Ford concentrated on large-scale capital projects, not on tinkering with fares.

In the Final version of the business case, the subway fare proposal has changed so that it would only apply to cross-border trips of 10km or more. This would have the effect of undoing part of the supposed benefit of the pending 905/416 fare boundary elimination where riders will not face an extra fare for the subway portion of their journey.

Future Richmond Hill riders look forward to a single fare to central Toronto, but this scheme might not be attractive as a 10km ride will only get them to roughly Yonge and Sheppard (8km for the Yonge extension, plus 2km on the existing subway). In the tariff modelled in the Final Report, the fare to Union Station would be $7.50. Similar issues face trips in other parts of the future rapid transit network.

Removing of the 416/905 fare boundary so that the TTC’s relationship with systems in the 905 and with GO becomes the same as every other system remains an option, but it is presented as the least attractive choice. The clear intent is to pave the way for higher subway fares for “regional” travellers while preserving the flat fare, for now, within Toronto. The political considerations are obvious, but so is Metrolinx’ intent to move forward in their implacable way. Both the Draft and Final versions of the report speak of a path from the current fare arrangements to a totally “integrated” future, albeit one that is not clearly defined.

Options with further levels of “integration” perform well as riding stimulants because they involve significant reduction in GO fares at a time when service will be increased through the GO Expansion program.

A major barrier to fare-by-distance on the subway is the need to “tap out” from the subway fare zone. This is not simply a question of putting Presto readers on the “inside” face of every fare gate, but of establishing fare lines between the surface and subway portions of stations. This has a substantial cost and creates a barrier to free flow for the vast majority of trips that would still pay a flat TTC fare, Moreover it would be a Trojan horse making future conversion of the subway within Toronto to a separate fare zone much simpler.

This is not a “fare integration” scheme, but rather a plan to increase GO rider subsidies while also setting the stage for subway fare increases. The idea of a revenue neutral change in the tariff has been abandoned, at least for now. The historic pattern emphasizing GO capacity for longer trips has been turned on its head to give GO rail a larger part in local travel within Toronto.

In order to sell this concept, Metrolinx now includes rebalancing the GO fare structure under the “integration” rubric. This is a completely separate issue and it should have been addressed years ago on GO independently from the cross border fare problems.

An intriguing caveat in all of this is that the Ministry of Transportation is listed as a “partner” in the study, and its conclusions will be referred to MTO for review. One has the sense of Metrolinx being on a short leash.

It is not surprising that this report was pulled from public view, but it is worth discussing because it reveals Metrolinx’ thinking. A document does not become a “Final” report, even if it is only a “Final Initial” version, without a lot of policy signoffs along the way.

Note: In this article, I use Draft and Final (capitalized) to refer to the two versions of the Initial Business Case.

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