Whatever the cost of putting on the 2010 Olympics, it is the best economic stimulus package a government could want, Finance Minister Colin Hansen said Thursday.
Without conceding the government has pumped more money into the Games than it had first promised, Hansen said he understands how taxpayers could be nervous. But he pointed to the benefits derived from Expo 86 and raised the spectre of the current worldwide financial meltdown to justify the hundreds of millions of taxpayers' dollars governments across Canada have devoted to the Games.
"When we talk about economic stimulus packages that governments around the world are trying to put in place, you could not find a better economic stimulus package than hosting an Olympic and Paralympic Games," he said.
The government has estimated the Olympics will generate $4 billion in direct economic benefits, half of it from venue construction programs and the other half from corporate sponsor programs. "That's not counting the multiplier effect in the B.C. economy of having that $4 billion infused directly into local businesses," he said.
Hansen said no one questions Expo 86 was a success as an economic generator -- and that was without the sustained worldwide television coverage the Olympics will bring to the province.
The province's $600-million Olympic budget remains fair, he said, even though he knows some people want to attach projects such as the Canada Line, Sea to Sky Highway upgrade and Vancouver Exhibition & Convention Centre as Olympic projects.
However, Hansen has acknowledged that the revised costs of Olympic security will exceed the province's $87.5-million budgeted share -- and could mean the province will exceed its $600-million cap. The bulk of security costs, which could reach $1 billion, will be paid by Ottawa.
In its 2002 bid book, the Vancouver Bid Corp. estimated it would cost $709 million to build new and refurbish existing venues, with $509 million coming from the federal and provincial governments and the rest -- primarily for the Vancouver Athletes' Village -- coming from other partners. At the time, Vancouver was already planning to sell the lands to a private developer to build an 1,100-unit residential neighbourhood. Vanoc eventually pegged venue costs at $470 million.
In April 2004, Vanoc acknowledged it needed more government money because of rising construction costs and because the bid was estimated in 2002 US dollars, as required by the IOC. Ottawa and Victoria eventually parcelled out another $55 million each.
jefflee@vancouversun.com
Source: http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=ae708792-f2e5-41a8-8911-767528c5f9e4
Without conceding the government has pumped more money into the Games than it had first promised, Hansen said he understands how taxpayers could be nervous. But he pointed to the benefits derived from Expo 86 and raised the spectre of the current worldwide financial meltdown to justify the hundreds of millions of taxpayers' dollars governments across Canada have devoted to the Games.
"When we talk about economic stimulus packages that governments around the world are trying to put in place, you could not find a better economic stimulus package than hosting an Olympic and Paralympic Games," he said.
The government has estimated the Olympics will generate $4 billion in direct economic benefits, half of it from venue construction programs and the other half from corporate sponsor programs. "That's not counting the multiplier effect in the B.C. economy of having that $4 billion infused directly into local businesses," he said.
Hansen said no one questions Expo 86 was a success as an economic generator -- and that was without the sustained worldwide television coverage the Olympics will bring to the province.
The province's $600-million Olympic budget remains fair, he said, even though he knows some people want to attach projects such as the Canada Line, Sea to Sky Highway upgrade and Vancouver Exhibition & Convention Centre as Olympic projects.
However, Hansen has acknowledged that the revised costs of Olympic security will exceed the province's $87.5-million budgeted share -- and could mean the province will exceed its $600-million cap. The bulk of security costs, which could reach $1 billion, will be paid by Ottawa.
In its 2002 bid book, the Vancouver Bid Corp. estimated it would cost $709 million to build new and refurbish existing venues, with $509 million coming from the federal and provincial governments and the rest -- primarily for the Vancouver Athletes' Village -- coming from other partners. At the time, Vancouver was already planning to sell the lands to a private developer to build an 1,100-unit residential neighbourhood. Vanoc eventually pegged venue costs at $470 million.
In April 2004, Vanoc acknowledged it needed more government money because of rising construction costs and because the bid was estimated in 2002 US dollars, as required by the IOC. Ottawa and Victoria eventually parcelled out another $55 million each.
jefflee@vancouversun.com
Source: http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=ae708792-f2e5-41a8-8911-767528c5f9e4
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