The federal government has failed to give VIA Rail Canada long-term strategic direction, forcing it to operate in a “reactive, short-term management mode,” according to the auditor general’s spring 2016 report.

Since 2008, VIA has been unable to obtain the government’s approval of its corporate plan for a full five-year planning period, the report notes.

In addition, their corporate plans have tended to be approved between September and December, just months before the end of the corporation’s fiscal year, “leaving VIA very little time to implement these plans economically, efficiently, and effectively.”

“VIA had systems and practices in place allowing it to clarify its mandate and to define its long-term strategic direction, its vision and objectives, and measures to be taken to achieve its objectives,” the report says.

But “in the absence of a long-term strategic direction approved by the government and a corporate plan approved for the full planning period,” it adds, “VIA had been kept in a reactive, short-term management mode.”

The auditor general recommends that VIA Rail Canada, in co-operation with the government, review its existing government system and make the appropriate changes.

“The Corporation’s planning and operational effectiveness would be greatly enhanced through multi-year approval and funding of its long-term plans. Management has worked with Transport Canada toward this objective and obtained a multi-year funding envelope ending in March 2017,” VIA Rail Canada responded.

“Furthermore, the Corporation’s management has begun working with Transport Canada to confirm its long-term strategy.”

In 2015, it adds, management developed two initiatives it hopes will improve the corporation’s services and ensure its long-term financial sustainability. It also hopes to have its corporate plan approved by government officials in a timely manner moving forward.

One initiative is to renew its equipment fleet for services in the Québec City–Windsor corridor.

“Nearly 200 cars will need to be replaced,” VIA Rail notes.

“The second initiative is to mitigate issues resulting from having to share tracks with freight trains. A project to build dedicated tracks for the busiest segment of VIA’s network, that is, the Toronto–Ottawa–Montréal corridor, is being examined. This four-year project could begin as early as 2016 and be completed in 2019.”

Speaking on his way into a cabinet meeting, Transport Minister Marc Garneau said he is taking the auditor general’s findings seriously and will address the weaknesses he identified.

“We have very clearly said that we are taking a long-term view. We have, in fact, put some funding into looking at their proposal for a high frequency rail. We’re looking at that,” he said.

In a press conference late Tuesday morning, Auditor General Michael Ferguson told reporters that the responsibility for making sure there is an approved long-term plan for VIA Rail fundamentally falls to the department of transport.

“I think in that report you will see that, over a five-year period, their revenue went up by about $5 million but their expenses went up by about $60 million. Ridership went down by about eight per cent,” he said.

“That would really call into question at what level they’re going to be able operate moving into the future. So it’s very important that they have clear instruction from the government about what the government’s expectations and plans are for VIA.”

With files from Elizabeth Thompson