OTTAWA, Oct. 24 (UPI) -- The outgoing government of Canada has pledged nearly $475 million to upgrade the national passenger rail service, VIA, reports said Friday.
The funding will not begin until Paul Martin takes over as prime minister from Jean Chretien in three weeks, the Globe and Mail reported.
It's a controversial parting gift from Chretien to a Montreal-based Crown corporation that already gets more than $130 million a year in assistance from Ottawa to cover losses.
Now that the cabinet has approved the VIA spending, it will start flowing in April 2004, rising each year through 2009.
"This government felt we should send a signal that we are continuing with the investments in passenger rail and that we are dedicated to a faster product," a senior government source said, explaining why Ottawa is making such a large pledge in the final weeks of the Chretien government.
