VANCOUVER: The Canadian Taxpayers Federation (CTF) commented today on the auditor general's report into the Convention Centre Expansion project which reveals the government was aware of escalating costs long ago, and the price tag may yet go higher.

"In 2003, taxpayers were left with the impression the budget for this project, $495 million, was based on a realistic estimate of costs," said Maureen Bader, BC Director. "Yet the auditor general's report suggests the figure was wishful thinking at best."

To keep the project on schedule, the report confirms that major contracts were signed at much higher rates. The government knew the costs would be over $800 million in early 2007 even though publicly they said something different.

"The government has been blaming construction cost inflation for the cost overruns knowing all along politically motivated building changes and the rush to finish were important contributors to out-of-control costs," said Bader. "It's time to put the brakes on this project and scale it back to something taxpayers can afford and the private sector is willing to fund."

The government has now signed fixed-priced contracts with the private contractor but the auditor general's report confirms this is no guarantee the project will be completed within the current budget of $883 million.

"Trying to transfer the cost overrun risk to the private sector this late in the day is too little too late," continued Bader. This monument to excess will leave the taxpayer with a legacy of debt.