The Rainbow, Whirlpool and Lewiston-Queenston (or is it Queenston-Lewiston) bridges are raising tolls for those paying in American currency. The reason given is the dropping value of the American dollar and, after all, they must be scrupulous about such things.
If you are paying with American money, tolls will increase by 50 cents for passenger cars on the Rainbow, Whirlpool Rapids and Lewiston-Queenston bridges as of Feb. 1.
For those using Canadian money, rates will remain the same.
The prolonged weakness of the U.S. dollar against other world currencies is the reason for the increase, the first since 1998, according to the Niagara Falls Bridge Commission.
"We look at it as an adjustment rather than a toll increase," said Thomas Garlock, general manager of the bridge commission.
Round-trip passenger car tolls will go from $2.50 to $3 U.S. They will remain at $3.50 Canadian.
Now, in mathematical terms, they're perfectly correct to do so. As it turns out, at today's exchange rates, the $3.50 Canadian toll equals almost precisely $3.00 American. But I have to wonder, while the American dollar is dropping in value, it's also true that the Canadian dollar is rising. One currency's loss is another's gain after all.
Wouldn't it make just as much sense to adjust the tolls from Canada downward to $2.90 to account for their dollar's sudden rise and leave our tolls alone?
Ah, but Grasshopper, the bridge commission would be taking in less revenue under that scenario. This is the perfect cover them. Blaming currency fluctuations makes a toll increase sound like nothing more than a year-end bookkeeping entry. Who could possibly complain about that?
Actually, without knowing what percentage of crossers pay in which currency it is impossible to detemine which scenario would bring in more revenue.
Of course they know the numbers, but more than likely the change from $2.50 USD to $3 USD as opposed to $2.90 CND is more of an operational/logistical move.
Posted by: chris | December 31, 2006 at 02:57 PM