INTERCITY BUS
LOCATION: NATIONAL
ISSUE/SOURCE: TRAN APPEARANCE
DATE: MARCH 25, 2021
SUGGESTED RESPONSES
- Intercity bus services are important in ensuring the quality of life of many Canadians, particularly those that rely on it for their mobility needs, such as seniors, students, low income individuals, and many people in rural, remote, and Indigenous communities.
- The economic regulation of intercity bus is primarily conducted by the provinces and territories. As such, provincial and territorial governments have a lead role to play in developing and administering solutions for the sector.
- Since the start of the pandemic, the Government of Canada has introduced a number of emergency support measures to help businesses, including intercity bus companies, as they continue to provide service to Canadians. Businesses that are unsure of eligibility requirements are encouraged to contact their respective regional development agency for more information.
BACKGROUND INFORMATION
- The intercity bus sector continues to face significant economic pressure due to the collapse of revenue resulting from a lack of ridership during the ongoing COVID-19 pandemic. As a result, many intercity bus companies have suspended or reduced services, noting the financial unsustainability of operating in the current economic climate.
- Several requests for sector-specific federal funding have been received despite the availability of general emergency support measures from the Government of Canada (e.g., Federal Emergency Wage Subsidy, Business Credit Availability Program, Regional Relief and Recovery Fund, etc.). To date, several intercity bus operators have obtained financial support through federal programs. However, regional development agency officials have noted a hesitancy from some operators to take on additional debt, as a number of the programs offer loans rather than grants.
- On March 9, 2021, the Government of British Columbia announced $10.7 million to support intercity bus services for one year. This allocation is separate from the funding that both the federal and provincial governments are jointly contributing to the BC Bus North Service. However, the province has signaled its intention to continue funding this service into the next fiscal year.