Are we really THAT diverse a country though? I mean, the need for efficient transit is the same no matter whether you're in Vancouver, Calgary, Toronto or Montreal. What we do suffer from is an institutional arrangement that prevents the active involvement of the Federal government in areas that are clearly of national interest, but had been traditionally in the purview of the provinces which had proven time and again that is either indifferent to municipal issues or downright hostile to them. Curing this "dysfunctional" system and the beliefs which drives small-mindedness should be the first priority.
AoD
Perhaps diverse is a poor term to describe our makeup. The reality is that the federal government in Canada faces competing priorities like few others elsewhere.
UT forumers like to cite the Europeans. But the reason they have such strong national transit strategies is because they don't really have strong provincial administrations. There's really no province of England. They have their regional authorities. But they are in no way as empowered as ours. That, invariably, means that they need strong central governments that routinely involve themselves in matters that would be considered to be under provincial jurisidiction in Canada.
Beyond that, I wonder if it's even really a good thing. When the feds pay, they'll want a say. Do we really want the federal government starting to dictate transit expansion in a given community based on political considerations from somewhere else? Keep in mind that the feds are forced to operate under completely different rules. For example, IRBs would come in to play. The TTC could well be compelled to award a contract for LRVs to small plant in Quebec or BC for the sake of IRBs, rather than Bombardier in Thunder Bay. You can't take their money without accepting their demands.
Lastly, I disagree that the provinces don't have the tools. The province has plenty of room to raise taxes. And they have the power to really get things built. McGuinty could easily have taken up the 2% cut in sales taxes if he wanted. But he didn't. And he could have built transit at a break-neck pace if he really wanted. But he didnt. Though I like the guy, I will fully call him out on his laggardly pace, cowardice and laziness on this front.
Inevitably, this leads to the call for a national transit strategy. After all, when all else fails, ask the feds to pay right? Why can't the provinces just do what they are supposed to do and manage cities well? When does everybody let them off the hook and insist that the feds take over? And what makes everybody think that the federal government will do a remarkably better job than the provinces?
Personally, I'd rather the feds stick to their domain. Let them focus on national infrastructure, like high speed rail.