VANCOUVER: The latest cost estimate for the Vancouver Convention Centre Expansion project demonstrates the continued mismanagement of taxpayer dollars that has defined this project from the beginning, the Canadian Taxpayers Federation (CTF) said today.

"Now estimated at $833 million, the cost overrun is approaching the Fast Ferry Fiasco in magnitude," stated Maureen Bader, BC Director of the CTF.

Slated in 2003 to the tune of $495 million, the amount expanded to $615 million in 2005. Reasons offered by the BC government for the cost overruns include labour, steel and concrete price increases, however, other projects, such as the Abbotsford Regional Hospital, the Sea-to-Sky Highway and the Canada Line construction projects are both on time and on budget.

"There is no excuse for this type of cost overrun," added Bader. "The Convention Centre Expansion Project is being built by the same contractor as the new Abbotsford Regional Hospital, and that project is on time and on budget. The fixed-price, performance-based contract no doubt eliminated the possibility of politically motivated add-ons."

In 2005, then Minister of Tourism, Sports and the Arts Olga Illich augmented the project's budget by $50 million for additional amenities and construction cost increases.

"If additional commercial and waterfront developments have such a great future potential, why wasn't the private sector brought on board at that point to offset some of the risk to taxpayers " continued Bader. "The entire project was supposed to be a Public-Private Partnership right from the very beginning, but the private sector has yet to get involved."

On April 13, 2007, the Board of Directors of the Convention Centre Expansion Project was amalgamated with the BC Pavilion Corporation Board. Minister of Tourism, Sports, and the Arts Stan Hagen said at the time this was in order to bring more construction experience to the project.

"This whole thing just shows that governments should get out of construction management," said Bader. "They do not have the expertise, and tend to fall victim to political whims instead of staying focused on issues intrinsic to the projects themselves, such as costs."