A tax credit for P.E.I. bridge tolls? Cost would be $2.5M, says budget office

The federal budget watchdog says that creating a tax credit for local residents who regularly pay tolls on the Confederation Bridge would cost the treasury about $2.5 million a year in foregone tax revenue.

The parliamentary budget officer makes the estimate in a report released today that was sparked by repeated questions from Atlantic Canada politicians about why drivers in Montreal won't have to pay tolls for a new bridge, while tolls remain in place on the Confederation Bridge connecting Prince Edward Island to the mainland.

The Liberals say the new Champlain Bridge is a replacement for a bridge that didn't have tolls, while the Confederation Bridge was a new piece of infrastructure designed to have tolls when it was first opened.

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That explanation hasn't sat well with some P.E.I. politicians, including Senate Liberal Percy Downe who asked the PBO to estimate what it would cost to provide local residents with a non-refundable tax credit, or reduce tolls on the Confederation Bridge.

One day Islanders woke up and found out the government of Canada was going to build a new bridge in Montreal.- Percy Downe

Downe said now that the report has been released and more information provided, the federal government needs to treat P.E.I. fairly.

"One day Islanders woke up and found out the government of Canada was going to build a new bridge in Montreal — the Champlain Bridge — for $5 billion and charge no tolls even though the previous bridge had tolls up until the 1990s."

Downe told CBC News: Compass the federal government's response that the Champlain Bridge had no tolls is misleading.

"The Champlain Bridge did have tolls, they were only removed in 1990 when the bridge was paid for. So to say that they had no tolls is completely incorrect."

Rules changed

Islanders understood when the Confederation Bridge was constructed that users must pay for major infrastructure projects, but "they changed the rules," Downe said.

He questioned why Islanders are paying $46 to cross the bridge, saying that at $3.57/km it's is the most expensive drive in Canada.

The P.E.I. senator said Islanders are just looking for equal treatment.

"Fair is fair, if they are doing it in one part of Canada, they should do it in the other part of Canada which is P.E.I., " he said.

"If we end up paying $46 every time we cross that bridge and the people in Montreal pay zero … either they put a toll on Champlain Bridge or they give us equal treatment."

$17M in tolls raised in 2015

If tolls can't be eliminated completely, he suggests the government enter into a contract extension with the current bridge operator which would at least see the tolls reduced.

Fair is fair, if they are doing it in one part of Canada, they should do it in the other part of Canada which is P.E.I.- Percy Downe

The parliamentary budget officer's reported estimated that tolls could be reduced by about 46 per cent and still provide enough money to the bridge's private operator to cover maintenance costs through to 2097 when the Confederation Bridge turns 100.

The budget watchdog says that in 2015 an estimated 730,000 trips across the Confederation Bridge were made by local residents raising an estimated $17 million in tolls.

Downe said he and other politicians will work to keep the pressure on the federal government for a resolution.

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