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Bus-ted

January 15, 2010 17:01

When Greyhound Canada announced last fall that it would wind down operations in Manitoba and northwestern Ontario unless it received $15 million in government support, Federal Transport Minister John Baird went through the roof.

He accused the "Texas-based multinational" of using "heavy-handed" tactics and trying to "bully" its way to a free subsidy.

The company dismissed the allegation, insisting it simply could not afford to continue running trips to unprofitable sites in small-town Canada.

This is the same backdrop against which Greyhound declared last week that it will discontinue service from Alliston to Barrie and Toronto.

The average number of passengers per trip on the route is less than seven, the company said, noting such low ridership undermines the financial case for maintaining service.

No company can be forced to maintain an unprofitable business model, so Greyhound is on solid ground in chopping routes that lose money.

That is of little comfort, however, to those few local residents who rely on the bus to get them to and from these other centres when necessary. Those of us who drive, all too often taken for granted our privileged mode of transportation from point A to point B. It also makes our area less attractive to tourists and residents who don't drive.

The question now is what can or should be done about it. If the federal or provincial government stepped in with a wad of cash, Greyhound would surely reconsider its latest cuts. But is that a responsible use of taxpayer dollars?

And where does it end? Do we continue to subsidize other services in the community because a profitable business model cannot be maintained?

The federal government has overall authority but delegates regulatory power to the provinces.

When last fall's cuts were announced, the Ontario Ministry of Transport weakly held out hope that another private operator would step in to provide the service. No help there.

Greyhound is the largest provider of intercity bus transportation in Canada, serving nearly 1,100 locations. Many of them, no doubt, are as underutilized as Alliston line was, for taking the bus is no longer a part of many people's lifestyles.

The owner of Alliston's new radio station began broadcasting this week that he is looking for support to take over the licenses for the Greyhound routes. It's unclear how he can create a successful business model where the larger corporation couldn't, but more power to him. Perhaps with more frequent runs to Barrie, Newmarket and Toronto the buses will attract more riders.

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