"Public transit in Montreal is as essential for the public
as long-term and stable financing is for our survival."

            Claude Dauphin, chairman of the board of directors

Montreal, November 26, 2003 –  The STM is taking advantage of the deposit of its 2004 budget today to remind the Quebec government of its responsibility to provide public transit with long-term and stable sources of financing.

This budget has risen to $ 811.3 million, an increase of  5 % from 2003, and includes a contribution of $ 263 million from the city of Montreal which has raised by $26 million its contribution since the creation of the new city. This budget anticipates a financial aid from the Quebec government in the amount of $ 20.3 million an a fare increase of 10%, as the government has not yet followed up on its commitment to make a decision on the new financial framework for the transit companies.

Thus, as of January, it will cost $ 59 for the CAM (reduced fare : $ 31), $ 18 for the weekly CAM (reduced fare : $ 31), $ 18 for the weekly CAM (reduced fare : $ 9.50) and $ 11 for a strip of six tickets (reduced fare : $ 5.50).  The cash fare, however, will remain the same, $ 2.50 for the regular fare and $ 1.25 for the reduced fare.

Unavoidable expenses
Various factors account for this increase in expenses in the order of 5% : wage increases ($ 9.4 million), improvements and optimisation of service ($ 3.5 million), adjustments related to leap year ($ 3 million), the indexation of certain group insurance premiums ($ 2.2 million), the indexation of goods and services, in particular energy costs ($ 2.1 million) and liability insurance ($ 1.5 million) and finally, increase in the bus-métro debt servicing costs ($8.5 million), all related to the importance of the anticipated investments to ensure service dependability and integrity.

Agonizing decisions that do not favour public transit
Within the context of under-financing and taking into account the difficult decisions that the company was forced to make in raising fares, the STM is predicting a reduction of 5 million trips on its network, for an anticipated total of 362.1 million.  "After dedicating such an effort over the past few years to increasing ridership, while the automobile continued to gain market share, this forecast saddens us. It motivates us even more to continue our efforts with the governments so that they will make decisions quickly in favour of public transit and work with us on the rebuilding of this essential service", declared the chairman of the board, Mr. Claude Dauphin.

Major growth in the demand for adapted transport
This reality, however, does not apply to adapted transport where the demand continues to grow.  In fact, the STM anticipates providing 1.6 million trips, 8% more than in 2003.  To support this increase, the company is going to present the Quebec Transport Department with expense forecasts of $ 32.2 million, an increase of 3.5 % from 2003.  " The government, which subsidizes 75 % of the admissible expenses for adapted transport, must take another look at its assistance program in order to deal with the growing needs of disabled customers.  Since 1995, the number of trips has increased by more than 40 %. This is a reality from which we can no longer escape", admitted Mr. Dauphin.

Investments to ensure improvement in services
Mr. Dauphin also presented the 2004-2006 Program of Capital Expenditures for the maintenance of capital assets and improvements in customer services. "To protect its heritage, which is showing obvious signs of ageing, and to shape the public transit of tomorrow, the STM must, over the next ten years, invest 3 billion dollars in its network. This is a huge sum and demonstrates to what extent government decisions will be crucial to the future of public transit in Montreal". Over the next three years, the STM plans to invest $ 981.5 million, including $ 358.3 million in the bus network, $ 508.2 million in the métro network and $ 115 million in the acquisition and installation of a fare sale and collection system. The majority of these projects will help to increase the reliability of the métro and the punctuality of buses and will improve customer satisfaction. It covers, for  the bus network, replacement of city buses and minibuses ($ 117.3 million), the implementation of preferential measures to make bus trips more rapid on certain priority roads as well as improvements to terminuses and waiting points ($ 39.4 million). For the metro network, the fixed equipment replacement program, R�no-Syst�mes  ($ 303.6 million), studies and the acquisition of the first MR-2005 métro cars  ($ 68.2 million) as well as the renovation of the MR-73 métro cars, as a result of which significant improvements will be made to make the cars more accessible and  more comfortable ($ 30.8 million).