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Memo to Manley: Wake Up, Pro Hockey Is Not A Public Good

Author: Walter Robinson 1999/06/29
Representatives from pro hockey and various levels of government met in Toronto this week to rescue the game from its "crisis state" at the Hockey Summit. The post-meeting news conferences were predictable. A spirit of dialogue emerged and all parties are committed to finding a solution - blah, blah, blah.

Canadian NHL owners are upset because their taxes are too high, our dollar is too low and their American counterparts receive better tax treatment. No kidding. Take a seat on the bench with other Canadian businesses and individuals.

Yes, taxes need to be reduced. But not solely for pro sports teams. Let's remember that Canadian taxpayers already do more than their fair share for the NHL.

All those corporate boxes and company-owned seasons tickets are nice business development tax write-offs, partly courtesy of the Canadian taxpayer. In various cities, the feds have Government of Canada logos on the ice or on arena structures.

Then there's the taxpayer-funded advertising by Canada Post, Via Rail, and the Royal Canadian Mint. And let's not forget the CBC television broadcast rights paid to teams - courtesy of Joe and Jane Q. Taxpayer.

Now we have word that the feds are willing to provide up to $15 million per year to help Canadian NHL teams. But we are supposed to rest easy because the money would be repaid if the teams are moved or sold. This is the same government that has lent out over $3.2 billion in corporate welfare to industry in the last 18 years and has recouped less than 15% of the monies owing!

As for the idea of giving teams a cut of lottery revenues, it's way offside. Those who favour this scheme argue that it's fair because lotteries are a 'voluntary tax on people who are bad at math.' But the government should not be in the business of redirecting taxes (be they compulsory or voluntary) to any private enterprise in the form of corporate welfare.

If we are going to walk this road, let's direct voluntary taxes to other priorities. How about extra lottery proceeds earmarked for reduction of our $580 billion national debt Or what about an extra nickle or dime on a 6/49 ticket for more MRI machines in Canadian hospitals Then we could double the price of a Super 7 ticket to help fund pensions for our Merchant Mariners.

In Ontario, we could add 50 cents to the price of a Daily Keno ticket to help the Toronto Transit Commission buy new subway cars and buses. How about a surcharge on Blackout Bingo tickets in Alberta to reduce the remaining provincial debt

We could even ask the provinces to set up a lottery to bail out the unfunded liabilities in the Canada Pension Plan. Or we could just add an extra penny or two to every scratch and win ticket to refurbish our inner city public schools with new computers.

Pro-hockey is not a public good

and we should not let civic pride or our 'love of the game' get in the way of this fact. No public dollars, no matter how they're collected, should be given to 22 year-old millionaires on skates or their equally affluent middle-aged bosses.

A Note for our Readers:

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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