NDP Misleads Public on Taxpayer Funded Arena Package

Letter

WINNIPEG: Misleading government information on provincial financing for a new arena prompted the Canadian Taxpayers Federation to call on the Provincial Auditor one month ago to perform and report on a value-for-money audit on provincial tax dollars committed to the True North arena owners. An audit would assess the efficiency, economy and effectiveness of the taxpayer dollars spent on the project. A reply by the Provincial auditor is expected shortly.

In a letter to Provincial Auditor Mr. Singleton, dated May 29, 2001, the CTF took issue with the NDP's secretive and posture and ambiguous defensive of taxpayer funding for the new arena owners.

"The NDP first mislead the public into believing that the arena funding package was a private sector lead initiative covering 70 percent of the arena costs compared to 30 percent by Manitoba taxpayers. The "full" financing costs borne by Manitoba taxpayers is at least $47 million in the first year and $256 million in 25 years (see chart below). The private sector has committed to a $25 million capital out lay plus debt financing. This is a far cry from the misleading 70/30 private/public percent split trumpeted by the cabal of government officials and future arena owners," noted Victor Vrsnik, CTF provincial director.

The NDP again mislead the public on the issue of VLT revenue caps for the new arena owners. The Official Opposition noted that the NDP reversed their position on the $1.5 million VLT cap.

"It's highly unusual to expect taxpayers to make a multi-million contribution to new arena owners while misleading the public over the true financing plan and then denying them access to the project's business plan and the province's cost/benefit analysis," lamented Vrsnik. A review by the Provincial Auditor would set the record straight on the true public costs for the new arena.

The provincial government has committed itself to a $13 million grant and about $45 million in VLT revenues over 25 years. In addition, the private/public Crocus venture capital fund has also made an undisclosed contribution to the arena project.