Saint John Transit mulls service cuts to trim deficit

Saint John Transit is looking at various options of increasing revenues and cutting costs as it struggles to overcome a deficit that could hit $800,000.

The transit commission was the focus of a special Saint John council meeting on Nov. 14 where Mayor Mel Norton said he had lost confidence in the Saint John Transit commission because of the unexpected deficit.

Frank McCarey, the general manager of Saint John Transit, said the transit commission has cut as much as it can and the only avenue left to reduce the deficit is to cut services.

McCarey said during an interview with Information Morning Saint John that cutting some routes to the suburbs is a possible option to trim its deficit.

"We talked to the city earlier this year about a fairly significant reduction and putting everything just in the primary development area, McCarey said.

Keeping our service only in that area so that suburban-type services still wouldn't operate. They may elect to go in that direction or they may not."

McCarey said he won't comment further on possible cuts until he knows the commissions budget.

Saint John Coun. David Merrithew said council doesn't know how much money the transit commission will get from the city in next year's budget.

"We're looking at sustained budgets and have done that process for some time now. But we're still in the midst of it. It's not concluded yet. Therefore, we really don't know what we'll allocate to transit," he said.

When it comes to how the transit commission will erase its deficit, Merrithew said there are other routes to take rather than just curtailing services.

"We'd like to see perhaps there could be a small increase in fares. Perhaps there could be space rented in the bus terminal or garage, he said.

I think the balance sheet has two sides to it, the revenue and expenses, and we're not looking at the revenue side as hard as we have to as well."

Merrithew said there is a possibility of a negotiation between the city and the transit commission when deciding on its budget.

"I'm only one of 10 councillors, but what I foresee happening is a figure being talked about, going back to Mr.McCareyand him saying, 'For that figure I could do this.' And if council is happy with that, then [we'll] tell Mr.McCareyto do just that," he said.

"If we're not happy with that, we want more or less, perhaps that's a point of discussion."

Some riders had their own ideas on how Saint John Transit should erase its deficit.

John Scott said cutting routes is not the best way to make more money.

"If they want to cut them, they can. But I think actually if they have more routes it's always better. They think backwards, council. They always think backwards."

Brad Hewitt said the transit commission has to look seriously at its expenses.

"Get rid of that big building they got. They didn't need that to begin with. That cost a fortune and of course the people are going to pay for it, said Hewitt.