We probably have no real right to feel that way, but don’t you feel a little bit betrayed when the federal government pulls a 180, so it can curry electoral favour in the run-up to an election? With a billion dollars of your money?
In 2008, during the recession, the feds put $1.25 billion into a special fund to encourage private industry to invest in public works, through that instrument so beloved of conservatives everywhere in Canada — public/private partnerships, also known as P3s. In fact, they created a whole new Crown corporation to do the work, called PPP Canada Inc., also known as P3 Canada.
They were to find projects where government and business could work together to boost employment, create new investment opportunities and get municipal economies moving. Win, win, win. (Taxpayers were to be included as one of the wins, using services that would not otherwise get built.)
Except corporate Canada wasn’t interested. In the two years since, only two projects were approved. One was a road project in Winnipeg, which got a $25-million subsidy, the other was a $50-million expansion of radio emergency services in the Maritimes.
The rules of incorporation specifically forbade investment by P3 Canada into arenas and stadiums for professional sports.
Since then, Edmonton began looking at a new arena for their hometown Oilers, Saskatchewan wants to build a covered CFL football stadium on their downtown railyards (a site Red Deer should have chosen for its WHL hockey rink, but let’s not go there today), and Quebec City wants to build an NHL arena, even though they don’t have a team to put in it.
None of these projects would have been approved, had they applied, even if private investors and other public monies (i.e. provincial or municipal taxes), could be lined up to support it.
Not even if pro sports would only be one of any number of users of the new venue. This was specifically written into the rules.
For obvious reasons: unless you specifically wrote pro sports out, millionaire team owners looking for a good deal on a new set of box seats would have run circles around each other and eaten up the money.
There would be no end of applications. Win, lose, lose (especially taxpayers who can’t afford the price of a ticket or don’t support the team anyway). But rules change, especially around election time.
Finance Minister Jim Flaherty was pretty cold during the recession to the idea of using tax money to subsidize team owners and their players. And P3 Canada Inc. reports to him.
But last week in Saskatchewan, he sounded like a spring thaw. Make that a summer election.
“P3 Canada Inc. is reviewing the application of Saskatchewan with respect to the proposed stadium and I look forward to seeing what they have to say on the subject.”
As in: “If we can change P3 Canada’s rules of incorporation to buy votes without spending any new money, why not?”
That’s a betrayal. If business isn’t interested in legitimate P3 projects (toll roads seem to be the flavour of the month), dissolve P3 Canada, and put the money against the federal deficit.
If any politician thinks it’s a good idea to build NHL arenas and CFL stadiums — instead of roads, public transit, or other needed infrastructure — let him or her come out and say so. And face election.
But don’t lie to us, don’t pull the old switcheroo.
Given our political climate, one could suppose there’s no such thing as betrayal anymore. But it sure feels that way.
Greg Neiman is an Advocate editor.