No Taxpayer Subsidies or Concessions without Voter Approval

WINNIPEG: The Canadian Taxpayers Federation challenges the Manitoba NDP and City Council to hold a referendum on the full taxpayer support-package for the True North arena project.

"Give Manitobans an opportunity to register their opinion on how their money should be spent," said Victor Vrsnik, CTF provincial director. "Neither the provincial government nor City Council were elected with a mandate to subsidize the owners of the new arena with millions in taxpayer dollars. So far, public funding for the new arena owners has been treated like a shotgun wedding devoid of any public debate or consultation."

The CTF also takes issue with inaccurate public financing figures. The "full" financing costs born by Manitoba taxpayers is $47 million in the first year and $249 million in 25 years. This is a far cry from the so-called 70 - 30 percent split between the private and public sectors.

The private sector is reported to invest only $25 million in up front capital compared to $38.5 million by taxpayers. Hence, taxpayers are paying 61% of the up front costs, while the private sector kicks in only 39%. The balance of the $125 million construction costs is debt financed by the private sector with taxpayer concessions.

"Manitoba taxpayers should not be shanghaied into defraying True North's operating costs through a myriad of concessions, tax breaks and tax holidays," noted Vrsnik. "Over the next 25 years, Manitoba taxpayers will award $210 million in tax breaks and VLT revenues to subsidize the new arena's operating costs.

"It's shameful that politicians have approved this subsidy package without any meaningful public debate," concluded Vrsnik "An income redistribution package of this magnitude should not receive sanction without consulting Manitobans first in a popular referendum or plebiscite."