Beyond The Commons

 Beyond The Commons

Aaron Wherry covers all the goings-on in and around Parliament Hill. Follow Aaron on Twitter: @aaronwherry

Categories: Beyond The Commons, Capital Read

'The door is not closed from the federal government'

by Aaron Wherry on Thursday, January 27, 2011 5:11pm - 18 Comments

The government decides it’s not quite ready to decide on the most important public policy question of our time.

The government says it will give the city’s mayor time to raise more private-sector funding before it considers a federal role. The Conservatives’ top local minister, Josee Verner, told a news conference that the government has yet to receive a proposal that includes private-sector money. ”We do not have everything we need,” Verner said. ”It is important that (Mayor Regis) Labeaume continue (raising funds).”

The Liberals released a comprehensive accounting of their position today.

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  • Emily

    Harper trying to slide out of that corner he painted himself into.

    • Dave

      Yeah good luck with that.

  • tobyornotoby

    I've grown quite cynical about the"significant participation of the private sector" in these kinds of projects, because what it usually means is some rich guy converting public funds into private wealth.

    Governments kick in start-up funds, loans, infrastructure improvements, and tax holidays (i.e property and entertainment taxes) while some vague consortium controlled by a single wealthy person fronts an amount they have borrowed against the future value of the facility, and will quickly earn back from concessions and parking and attendance. In the end governments provide the down payment and the "owner" gets a mortgage to raise his so-called private investment.

    A reasonable business deal would see the governments reaping a return on their investment by getting a slice of the pie, at least from the property and entertainment taxes, but usually that's what the municipality kicks in.

  • Crit_Reasoning

    Perhaps not coincidentally, the Liberal position is almost identical to the Conservative position:

    “The Liberal Party would be prepared to consider federal financial support for the Quebec City arena project if certain essential conditions were met. The project must have substantial and clear support from the private sector and be based on a fully-costed business plan. The arena must be multifunctional, promote cultural outreach in the Quebec City region and therefore cannot be an arena exclusively reserved for professional sports. Additionally, any federal government participation must be within the framework of a national strategic plan in order to ensure that all regions of the country are treated equitably.

    It all comes down to whether there will be an election this year. If so, both parties want to keep the arena-funding door open so they can woo Quebeckers with generous presents. It's a Canadian tradition.

    • Emily

      They are referring to the PPP3 requirements, and adding some of their own.

      • Horatio

        PPP3? Public Private Partnership 3?

    • Jan

      Well, I don't believe I've heard Harper use the words 'fully-costed business plan' .

  • brooster2

    "Additionally, any federal government participation must be within the framework of a national strategic plan in order to ensure that all regions of the country are treated equitably." [Liberal Party statement]

    Edmonton, Regina, Winnipeg, Hamilton, Ottawa, Halifax…Start. Your. Engines!

  • Mr Irrelevant

    The government has turned this into a political timebomb regardless of what way they decide. A firm and immediate no would have done some damage in the QC region, I'm sure (though Quebec City taxpayers have the most to gain if the project falls apart), but they would have had months by now to dig out of the hole. And I suspect it would be nowhere near the damage done by stringing it along and saying no, or worse, actually funding it and committing the next generation to serve as an ATM for pro sports owners (or as the Liberals' oily governmentspeak puts it "framework of a national strategic plan").

  • Albert

    Ask Kansas City how building an area in attempts of luring a NHL or NBA team is working.

    • brooster2

      Or Hamilton (Copps Coliseum), since the '80s.

    • Mike T.

      I think the party that says "we don't build empty arenas for hockey teams that aren't coming" will have a good financial message going into the next election.

      • McC_

        They would go a long way towards earning my support.

  • Richard_S_Argent

    The Conservatives must really be worried about losing their rump of seats in the Quebec City region. Otherwise this whole thing would've died a long time ago….like it would have if the proposed arena was in a BQ dominated region.

  • Stewart_Smith

    I think we all have to put our faith in Max to keep this nonsense under control. Hopefully nobody nothing comes up that distracts him.

  • Out There

    If the Conservatives believe that they can win a majority by paying for an arena in Quebec City, they will do it. If necessary, they will pay for five arenas in Quebec City.

    Whatever it takes.

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