Via Rail may be forced to cut routes and lay off staff as part of a government cost-cutting exercise, warns a transport watchdog group.

Earlier this year, the Conservative government asked the Crown corporation to identify lower priority and lower performing programs that represent 5% of its parliamentary allocation.

“Via doesn’t have any fat to cut,” said Transportation 2000 Canada’s president David Jeanes. “The only way they have to achieve those types of budget cuts is to completely eliminate or drastically reduce services, for example cutting the number of trains across the country.”

Jeanes is worried declining passenger rates on Via Rail’s western and eastern routes to Gaspe and Halifax will make the regions particularly vulnerable to cuts.

The Canadian Auto Workers’ Bob Chernecki said the union met with Via Rail management three weeks ago and raised the issue with them, but so far it has not been notified of any cuts.

“Absolutely no decisions have been made regarding any effect that this process could have on any part of our operation, let alone the passenger rail network,” said Via Rail’s spokesman Malcolm Andrews. “None would be taken until some time in early 2010.”

Andrews said fewer passengers are riding the railway because of the economic crisis and a drop in tourism.

By ALTHIA RAJ, NATIONAL BUREAU, >>> continue reading
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