Quebec transit companies could reduce their expenses by almost $350 million: audit

Quebec transit companies could reduce their expenses by almost $350 million – that’s according to performance audits commissioned by the province.

Quebec Transport Minister, Geneviève Guilbault, presented the results of the audit Thursday afternoon in Montreal, after ordering it amid financial aid negotiations.

The audit firm, Raymond Chabot Grant Thornton, examined the operation of 11 transit companies, including the ARTM, and identified sources of potential savings that would amount to $346 million –  about 10 per cent of their budgets.

Five of them were Montreal-area agencies: the ARTM, Société de transport de Montréal (STM), Société de transport de Laval (STL), Réseau de transport de Longueuil (RTL) and the Réseau de transport métropolitain (exo).

The firm outlined eight priority recommendations, six quick-win recommendations and six other avenues to explore. They identified 128 optimization avenues estimated at $346 million, of which $134 million is associated with priority recommendations.

Some of the proposals include outsourcing a portion of services, like exo commuter trains, which externally subcontracts the driver service – potentially saving $72 million.

“We have to erase this fear that private is not good. Private can be good and in other countries they do that also,” Guilbault said. “It can lead to reduction of costs, so this is good for the Quebecers because me, my obsession is that the Quebecers, they get better services and for each dollar invested, they get more services.”

Frédéric Therrien, President, STM Union of Bus Drivers, Metro Operators, Paratransit Drivers and Station Agents says this is an attack on workers and users.

“There will be cuts, Minister Guilbault says there won’t be any, that it won’t impact users. I guarantee you, it will impact them,” he said at a press conference following Guilbault’s. 

“I’m not that worried, but I think our public system, transport system is good now. It could be better, but cutting in this sector, I think it’s not the greatest idea,” said transit user, Camille Normandin.

Another measure would be reducing the number of vehicles in preventive maintenance or in reserve, to maximize the number of buses in circulation. The report estimates total savings of $46.8 million.

The audit also suggests working on innovative projects like “transport on demand,” which requires customers to request bus service near their home, instead of relying on lines that provide regular service. This measure could save around $7.5 million and it’s recommended to do so on a short-term basis.

The report also invites the companies to explore the makeup of their board of directors. For the metropolitan area, they suggest that the boards of directors of transit companies should no longer be represented by elected members, but rather entirely by independent members.

The transit agencies, except the ARTM, were ranked based on the sum of the transit agencies’ rankings for cost per kilometre, cost per hour and cost per trip.

The STM and STL ranked seventh and eighth respectively, while the Société de transport de l’Outaouais ranked tenth. Société de transport du Saguenay was first.

In May, it was reported that the Quebec government would absorb around 70 per cent of the more than half a billion dollar deficit of transit companies in Montreal, Laval and Longueuil, and the exo commuter trains, providing around $200 million in aid.

Now Guilbault says they are working on a deal on financial assistance until 2028.

“We are facing such a major challenge with the deficits that we have to think outside the box and to go for the real changes,” Guilbault said.

Some say it’s important for the government to step in and continue to help.

“We have to pay more, it’s getting expensive, especially for students,” said transit user, Soely Yungyumkouai.

“”Maybe some measures that can help people than reducing the budget and then having consequences to the services,” said another.