Question Period Note: Intercity Bus Services

Intercity Bus Services

• The Government of Canada recognizes the important role that intercity bus services play in supporting the lives of many Canadians – including students, seniors and those living in rural, remote, and Indigenous communities.
• The pandemic exacerbated a number of ongoing challenges encountered by the intercity bus sector. Many carriers limited, suspended, or cancelled services.
• However, Canada’s surface transportation network remains resilient. Many carriers are resuming their intercity services and new operators are beginning to enter the market.
• Since 1954, provinces and territories have been primarily responsible for the economic regulation of intercity bus services in their jurisdiction as per the Motor Vehicle Transport Act. As such, provincial and territorial governments play the lead role in crafting and implementing solutions for the sector.
• Following Greyhound’s decision to discontinue all its domestic bus services in Canada, the Minister of Transport wrote to provincial and territorial colleagues encouraging collaboration to support the intercity bus sector.
• The Government of Canada has since engaged provinces and territories on the state of intercity buses and continues to encourage collaboration on potential sectoral solutions.

If Pressed

• During 2021 engagement, provinces and territories identified unique regional challenges faced by operators. Provinces and territories reached consensus on an approach to continue to monitor sectoral developments and identify potential solutions within their respective jurisdictions.
• The Government of Canada remains open to collaborating with provinces and territories, in their capacity as the lead economic regulators, as well as with industry stakeholders to ensure Canada’s surface transportation network meets the mobility needs of Canadians and supports Canada’s economic recovery.

• In 2018, Greyhound discontinued all of its domestic routes west of Sudbury, Ontario, resulting in service gaps in the intercity bus network. In May 2021, Greyhound discontinued all its remaining Canadian services.
• A number of new operators have entered the market to fill in gaps left by Greyhound. However, some service gaps remain, particularly in smaller communities with low ridership.
• COVID-19 impacted the limited commercial viability of many intercity bus services, exacerbating challenges for operators that were potentially struggling financially before the onset of the pandemic.
• During the pandemic, several intercity bus operators obtained financial support through federal programs (e.g., Canada Emergency Wage Subsidy, Business Credit Availability Program). As many intercity bus operators also offer charter services, indirect financial assistance has also been provided through the Tourism and Hospitality Recovery Program and Highly Affected Sectors Credit Availability Program.
• The Government of Canada is investing $14.9 billion in public transit projects. In 2021, the Government of Canada introduced the Rural Transit Solutions Fund as part of this funding to support locally championed transit initiatives for those living in rural and remote communities. A minimum of 10% of the $250 million fund will be also allocated to Indigenous projects led by and for Indigenous populations.
• The Government of Canada also established the $2.75 billion Zero Emission Transit Fund to support public transit and school bus operators purchase 5,000 zero emission buses and build supporting infrastructure. This investment in public transportation also includes
  $3 billion annually in permanent public transit funding, beginning in 2026.

Location: National