A look at the 2022–2023 provincial budget – A half-baked budget for motorists
At first glance, the 2022–2023 provincial budget contains good news for motorists, namely the extension of Quebec’s Roulez vert program and more money for road maintenance. However, CAA-Quebec is somewhat perplexed by some parts of the budget.
Is the timing of the Roulez vert[1] program right?
The government is planning to fund the program until 2026–2027, but at the same time has announced that the maximum rebate for fully electric vehicles and plug-in hybrids is being reduced.
Starting July 1, 2022, the maximum rebates will drop from $8,000 to $7,000 for new all-electric vehicles, from $8,000 to $5,000 for new plug-in hybrids, and from $4,000 to $3,500 for used all-electric vehicles.
The government believes that this downward adjustment reflects the narrower price gap between electric vehicles and comparable internal combustion models on the market. But is that truly the case? According to Corporation des concessionnaires d’automobiles du Québec, it will be a few more years before the gap closes.
CAA-Quebec believes now is not the time to reduce rebates, as the low supply of electric vehicles may counter the expected price decrease. Some consumers might already be holding off on their decision to go electric because of the long wait and limited bargaining power. The government’s decision to cut the rebate could make matters worse, according to CAA-Quebec.
Moreover, the government has said that details on rebate levels for the purchase of electric vehicles beyond fiscal year 2022–2023 will be provided at a later date. For now, there’s no way of knowing just what the government has in the works. It’s safe to assume that rebates could be cut again after this fiscal year.
Check out CAA-Quebec’s advice on electric vehicles for more information.
Poor quality roads are a big expense
The government plans to invest $30.7 billion in roads under the Québec Infrastructure Plan (QIP) 2022–2032, and 76% of that is earmarked for maintenance, replacement and the asset maintenance deficit. But what’s surprising is the price tag for the asset maintenance deficit component: $19.4 billion. That’s the cost of repairing road infrastructure that has been neglected due to lack of funding. So despite the budgeted amounts, Quebec’s roads, the backbone of the economy, will continue to be under-funded.
According to QIP 2022–2032, only 56% of the road network is in good condition. Quebec’s road network includes:
· 31,091 kilometres of pavement
· 5,495 structures
· 4,264 bridges in the municipal network, under the responsibility of Ministère des Transports
· 62,035 culverts
Motorists, let CAA-Quebec remind you that in addition to the hefty amount you contribute as road taxes, you also have to pay for vehicle maintenance and damage caused by poor road conditions. According to a Canadian Automobile Association (CAA) study[2] published in spring 2021, the sorry state of our roads costs Quebec motorists $1.4 billion per year, or an average additional cost of $258 per vehicle per year.
In short, the poor overall condition of Quebec’s road network will continue to cost motorists dearly for many years to come.
CAA-Quebec’s message to policymakers has been the same for years: The cost of regular maintenance must be taken into account when new roads are built. Waiting until the existing infrastructure is too old to maintain simply creates a financial burden with no added value. In the end, it’s always up to the taxpayers to foot the bill. The longer maintenance is postponed, the higher the cost of repairs. A word to the wise.
[1] This program provides rebates on the purchase of various types of electric vehicles, but also on the purchase and installation of charging stations at home, at work, and in multi-unit buildings.