The first knockout punch came two years ago, but Eatons managed to stay on its feet despite overtures from local politicians.

Then, Winnipeg City Councillors went where no other city dared. They passed a motion to financially bailout the downtown Eatons store from closure.

Mayor Susan Thompson and company asked the City and the Province to extend a $4.5 million lifeline to keep the downtown store afloat. A report to EPC stated that the financial implications of the store's closure would put a strain on other downtown retailers and city tax revenues.

In its presentation to City Council, the Canadian Taxpayers Federation complained that throwing tax dollars at Eaton's was like rearranging the deck chairs on the Titanic.

By a stroke of luck, the deal collapsed shortly after when Eatons walked out of negotiations with Eaton Place - who were looking to buy the Eatons building.

Taxpayers can breathe a sigh of relief today knowing that fortune saved them from Council's careless mistake while some councillors will likely be eating crow.



Mayor Glen Murray was one of the few councillors at the time who had the presence of mind to vote against the bailout package. "It is not the role of city government to tax residents and other businesses to subsidize the rent and taxes of failing businesses," wrote Councillor Murray." was one of the few councillors at the time who had the presence of mind to vote against the bailout package. "It is not the role of city government to tax residents and other businesses to subsidize the rent and taxes of failing businesses," wrote Councillor Murray."

The Mayor was right. Taxpayer bailouts for ailing companies is risky business at the best of times. Bureaucrats and politicians are not fit to gamble and fritter away taxpayer dollars on pet business ventures.

Remember the Manglobe fiasco - an internet mall project that went belly-up a few years ago after receiving over a million dollars from Ottawa and the Province By the way, what ever happened to Winnport, a business venture that captured not the imagination of the city but over a million dollars in federal and provincial subsidies

The loss of Eatons today is bitter vindication for those who opposed the bailout package - knowing that downtown is about to lose a major tenant and slip farther into despair.

The city could do better to foster downtown development by even-handedly reducing business and property taxes.

At the time, Councillor Murray had one more pearls of wisdom to share, "it is the role of city government to fix the tax problem and get its spending priorities straight so Portage and Main ceases to be a retail graveyard."

How about that 10 percent property tax cut Mayor Murray Downtown could sure use the break.