Gasoline is one of the most heavily taxed consumer products in Canada – in fact, gasoline taxes comprise almost 50 per cent of the retail gasoline pump price. Although gasoline taxes were originally intended for fixing and maintaining our roadways they have now become an important revenue source for governments. The federal government collects almost $4.7-billion in annual gas taxes but invests less than 3% in road construction and highway development. Studies have shown that federal and provincial governments together receive an estimated $10 billion per year in gasoline taxes.

Learn more about what makes up the price that you pay at the pump here.

Many years of under-funding has resulted in a critical degradation of our road system. According to its most recent comprehensive assessment completed in 1998, the Council of Ministers Responsible for Transportation and Highway Safety concluded that 38% of the National Highway System (NHS) was deficient and substandard, and that 22% of the bridges in the system are no longer capable of sustaining the loads for which they were designed. Canada’s roads and highways are crumbling and government spending is failing to keep up with the needs of Canadians and the Canadian economy. There is an urgent need for a renewed commitment to sustainable, incremental funding to ensure that our roads and highways do not fall further behind in efficiency and effectiveness.

A recent public opinion poll commissioned by CAA found that three quarters of Canadians believe improving roads and highways should be one of Ottawa’s top four priorities. Only healthcare, education, and unemployment were ahead of roads and highways among Canadians’ priority concerns.

Of all the reasons to rebuild our roads and highways, none is as important as safety. According to Canadian government statistics, 2,800 people were killed and another 24,400 were injured in traffic collisions in 2000. In its 1998 report, the Council of Ministers Responsible for Transportation and Highway Safety estimated that reduced congestion and improved highway standards could reduce the number of fatalities by as many as 250 and injuries by up to 16,000 each year. In our public opinion survey, 79 per cent of respondents agreed that the improvement and maintenance of roads and highways should be a top priority because safer roads and highways will minimize crashes and deaths.

Moving forward, Canada must develop a meaningful, long-term national roads and highways policy that will provide direction towards a balanced, fiscally sound approach for giving back to this country good, safe roads and highways.

Canadian motorists and other road-users need a financial commitment from the federal government to develop a national transportation plan and stable, long term funding from existing sources to develop and sustain an integrated, multi-modal transportation system for Canada.
Motorists deserve a place at the discussion table as all levels of government get down to restoring the country’s infrastructure. In addition, since motorists pay the federal excise on fuel at the pumps, they should be invited to the table when decisions are made about how to spend those tax dollars.