CFIB calls for value for money audit of TransLink
Today, the Canadian Federation of Independent Business (CFIB) called on the TransLink board to initiate a truly independent value for money audit of TransLink. “We need to get to the bottom of this wild spending spree we have witnessed since 2002. TransLink must address the root causes of their structural operating deficit or their thirst for more 200 per cent tax hikes will remain unquenched. Hold on to your wallets,” cautioned Brian Bonney, Director of Provincial Affairs, BC.
“If the recession has taught us anything, it is to live within our means yet it seems TransLink’s the only organization not to get the memo,” stated Bonney. TransLink’s practice of coming back to the taxpayer well for more cash, including an incredible 123 per cent increase in property tax revenue since 2002, seems to be feeding their out of control appetite for spending. ”Until TransLink can ensure the public is getting good value for the money they are collecting from us in taxes, they need to repeal this 200 per cent parking tax increase,” said Bonney. “The message is clear: the well is dry,” Bonney added.
Compared to growth in population and inflation of 21 per cent in Metro Vancouver between 2002 and 2008, a key benchmark of fiscal sustainability, TransLink’s costs have skyrocketed with operating costs increasing by 57 per cent including a shocking 101 per cent increase in administrative costs. (See figure #1 and #2 attached)
With only 1.2 per cent of revenue coming from advertising, it’s disappointing that TransLink hasn’t thought “outside the tax box”. “TransLink needs to change the way they think. It doesn’t take a rocket scientist to see that allowing more entrepreneurs to set up independent coffee, news or pizza by the slice stands would help diversify its revenue sources and help address its revenue shortfall,” added Bonney.
With hikes in gas taxes, property taxes and fares in 2010, everyone in Metro Vancouver will pay more for less. Since 2002, service hours have increased about 30 per cent yet operating costs have gone up by almost 60 per cent. TransLink’s productivity has decreased as they are spending at double the rate of increasing services. In 2006 a CFIB survey found that 61 per cent of small business owners received “poor” value for money of services provided. “It’s sad to see nothing has changed,” Bonney said
And it doesn’t stop there. Despite the recession, the number of employees at TransLink earning $75,000 or more has ballooned 250 per cent over the past six years, with some managers’ salaries jumping as much as 90 per cent. A recent CFIB study comparing public and private sector compensation revealed that public transit pays a shocking 36.4 per cent more in salaries and benefits than the equivalent job in the private sector.
The BC Office of the Comptroller General found that cost containment measures at TransLink are isolated and spotty at best, and that TransLink is a top-heavy organization. “TransLink must adopt the Comptroller General’s recommendations, especially to ‘focus on effective cost-containment and set specific cost reduction targets,’ before it asks the public to pay more,” added Bonney.
January 28, 2010. CFIB