-- CTF Pens Open Letter to Prime Minister on NHL Subsidy Issue --

Letter to Prime Minister

OTTAWA: Canadian Taxpayers Federation (CTF) federal director Walter Robinson has written to Prime Minister Jean Chretien concerning the issue of the future of the NHL in Canada.

Mr. Robinson's letter - faxed to the Prime Minister's office today - is clear in it's request that the Prime Minister make a statement concerning the federal government's position.

"Mr. Prime Minister, the time for leadership on this file has come. We are looking to you to send a clear signal that the NHL needs to solve its own problems and that the federal government will not play any sort of role in exchange rate alleviation or any industry specific bailout initiative," writes Robinson in his letter.

The CTF goes on to note that the federal government should not be swayed by civic pride or boosterism that has taken hold in several communities where the future of NHL franchises is in question.

"Allow me to be very clear, professional hockey is not a public good. It is unworthy of specific industrial policy or special bailout treatment. The local media is full of hysteria and misinformation on this subject. Boosterism is masquerading as objective journalism and politicians at all levels of government are being asked to make taxation decisions based on arguments that wouldn't pass a first-year university economics course. As Prime Minister of Canada, it is your responsibility to ensure that the federal government does not fall into this realm where decisions are made in a vacuum."

Mr. Robinson notes that "there is no national public appetite" for government intervention in this issue. However the CTF concedes that the tax burden plaguing all Canadian businesses is a critical issue and it would be supportive of "across-the-board" solution that would benefit all businesses, including Canadian NHL franchises.