There are new developments in the brouhaha over a proposed convention centre for Halifax that is expected to create 1,700 construction jobs, generate $9.5 million annually in provincial tax revenue — and cost $160 million to build. That bill is at the core of the controversy. Businesses have, generally, pushed for the deal; public policy groups have given it a thumb’s down. Taxpayers are confused — and concerned.
At the heart of that concern are doubts about the price tag, which would be paid jointly by the three levels of government, and suspicions about the public/private partnership that would finance a complex that would, ultimately, be owned by the developer.
Proponents and detractors have used all the tools in their arsenals — petitions, public meetings, political pressure. The proponents, it appears, are poised to declare victory. The provincial government was the first to announce it was endorsing the initiative. Now the city has given the convention centre the green light.
Both levels of government, however, are saying nothing happens without federal government participation. For its part, the federal government is saying little at this point.
The stamps of approval from both the province and the city are surprising on many levels. The governing NDP is not traditionally known for its support of big capital projects launched by big business, and has already courted public disfavour by hiking the HST to 15%.
The city has also been bitten in the past over escalating costs of mega-projects and is still smarting, at least in voters’ memory, from its publicly humiliating withdrawal from bidding on the 2014 Commonwealth Games for that very reason.
It is likely that financial woes are driving much of the interest in the new 150,000-square-foot convention centre. Government at each level in Nova Scotia is looking at decreasing revenue and increasing expenses. An economic assessment report released this past summer concludes that a new convention centre will create more black ink than red.
According to the report, released by the Trace Centre Limited, which operates the existing convention centre, the new facility will result in approximately 27,000 “person years” of employment and over $170 million in provincial and federal taxes over a 10-year period.
But certainly, many doubts about the project remain. With unemployment in the province still high and public revenue listing badly, it could take a major leap of faith before Nova Scotians decide to sink more of their scarce public dollars into a project whose success depends on two very uncertain factors: lots and lots of visitors to Halifax in the years ahead — and federal Tory support for a provincial NDP government. IE
Success or sinkhole?
With provincial revenue listing, Nova Scotians are deciding whether a new convention centre would be a boost — or a burden
- By: donalee Moulton
- December 21, 2010 October 29, 2019
- 12:56
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