Budget neglects Vanoc's $55m request
The federal government didn't include any money for the 2010 Winter Olympics in Tuesday's budget despite intense lobbying from the Games' organizers, who say the money is crucial to the construction of sports venues.
Instead, there was only the promise that officials in the Department of Canadian Heritage are continuing to "do their due diligence" on a request for $55 million in extra funding.
The money is part of a $110-million request the Vancouver Organizing Committee made to the federal and B.C. governments last year to help close the gap between what Vanoc needs to build or renovate 16 venues, and the $470 million both governments have already committed.
The request has been stuck in Ottawa since last November. Vanoc said the money was urgently needed within two months because it was about to begin a major construction program.
At the same time, Vanoc was having trouble getting the federal government to live up to promises it had already made; the former Liberal minority government failed to pass budget legislation last year for its contribution to Vanoc's construction program. That meant Vanoc had to get a line of credit just to meet its 2005 construction program.
In its November submission, Vanoc blamed a booming construction industry and four years of unadjusted inflation for the budget ballooning by $195 million. However, it said it pared $85 million out of the request by revising and cutting plans. B.C. has already agreed to its half of the request, according to Vanoc's submission to Ottawa.
Despite the dire warnings Vanoc gave to the governments in private meetings last year, it now says the lack of money in the federal budget won't affect its construction program this year after all.
"We continue to have a request for additional capital funding before the federal government, and it is our understanding that they are doing their due diligence," Renee Smith-Valade, Vanoc's vice-president of communications said Tuesday.
"The government partners are up to date on their venue funding. As for the current construction year, we'll pay out of our existing cash resources, and that includes lines of credit, and we will be reimbursed on a timely basis by our government partners," she said. "We haven't committed funds beyond our means."
B.C. Finance Minister Carole Taylor expressed no concern about the lack of federal money for Vanoc in the budget.
"I am quite certain that when the prime minister puts one of his major ministers, minister [David] Emerson, on the Olympic file that we will be able to negotiate appropriate funding for the Olympics," said Taylor.
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