A
AlvinofDiaspar
Guest
Re: Expo 2015 Update Today.
From the Star:
World's Fair bid close to collapse
Province refuses to offer 'blank cheque' for deficits
'Intense' political discussions as deadline nears
Oct. 24, 2006. 05:51 AM
JIM BYERS AND KERRY GILLESPIE
STAFF REPORTERS
Toronto's bid for the 2015 world's fair was hanging by a thread last night after a provincial official said Queen's Park can't afford to be the financial backstop.
"The province will not be the guarantor of an uncapped deficit," a spokesman for Tourism Minister Jim Bradley said late yesterday. "We're supportive of the bid and initiatives to attract tourists to Ontario and Toronto, but at a time when we're focusing on investment in hospitals and schools, we cannot afford to write a blank cheque.
"The federal government, on the other hand, has a large surplus available," spokesman David Oved said. "The province is prepared to continue to be a partner with the city, the federal government and private sector on the bid."
The city is ready to talk about limiting any deficit, but if the province opts out, the deal is dead, said the city's chief cheerleader for the 2015 World Expo, Councillor Brian Ashton.
"If they're talking about a cap (on the amount of deficit they could pick up), the city I think is quite prepared to negotiate something as part of a sound business plan," said Ashton (Ward 36, Scarborough Southwest). "But if they can't play any kind of role (in helping with a deficit) ... it simply kills the bid."
Ashton, however, said "intense discussions" were underway between the city and Queen's Park last night.
"We're trying to find a cost-sharing partnership on the financial guarantee," he said, adding he didn't know what form a partnership might take.
The Paris-based Bureau International des Expositions, which grants the world's fair to cities across the globe, requires bid countries to pick up any deficits that might occur. The city's bid is due at the bureau's offices on Nov. 3, but Ashton said the agency would likely be happy with a letter stating the issue will be taken care of and that details will be worked out later.
"All the BIE cares about is that there's a guarantor," he said.
The Conservative government in Ottawa yesterday said it likes Toronto's bid. But the Tories say federal law doesn't allow Ottawa to pick up a potential deficit.
The city has repeatedly said it doesn't have the financial wherewithal to pick up a deficit, which studies have suggested could reach $700 million.
It's possible the province is trying to squeeze Ottawa for a stronger, upfront cash commitment for such things as security, soil cleanup or transportation, or is hoping the city will open its wallet and provide more than just the needed land.
But "the clock is ticking," Ashton said.
A provincial source told the Toronto Star the city shouldn't be surprised that Queen's Park is wary of acting as the bid's financial safety net. But Mayor David Miller yesterday said his understanding was the province was ready to pick up a deficit.
Speaking with reporters about the Expo bid after addressing the Star's editorial board, Miller was asked, "Any financial deficit is supposed to be borne by the province, correct?"
"That's right, yes," the mayor replied.
"That's still the case?"
"Yes, that's my understanding. Those are the federal rules for these kinds of bids."
Ashton said he was under the same assumption as Miller on the province's willingness to pick up a deficit. He said the city isn't asking for millions of dollars in cash on an upfront basis.
"If there was a deficit of, say, $500 million, it would play out over 10 or 12 years and there would be revenues from taxes" that would more than outweigh the spending, he said.
Federal Treasury Board President John Baird said yesterday he likes the idea of a World Expo in Toronto. "I've had good discussions with the mayor (Miller) about it," he told the Star's Les Whittington in Ottawa. "It's important."
Speaking before Oved made his comments to the Star, Baird said Ottawa was waiting for Premier Dalton McGuinty's government to provide a guarantee that it will cover unexpected costs, as is required since 1995 by federal law.
Baird said Ottawa is aware of the impending deadline for Toronto's bid and will make a decision as quickly as possible after it hears from McGuinty on the cost guarantee.
The city's plan calls for Ottawa, Queen's Park and Toronto to share $2.8 billion in upfront costs to clean up contaminated soil, build pavilions and make other improvements in the city's derelict port lands.
Ashton said studies have shown Expo could generate $5.3 billion in taxes, mostly for the federal and provincial governments.
The federal government doesn't have to pick up any deficit but would be expected to pay for security costs and for a pavilion at the fair, he said. Most of the city's contribution would come in the form of land.
Expo backers last week unveiled a new theme for the fair: Sharing Our Planet.
Izmir, Turkey also has talked about bidding for the 2015 fair. There's been talk of bids from Milan and Moscow, but nothing formal has been announced.
Toronto lost bids for world's fairs in both 1998 and 2000.
AoD
From the Star:
World's Fair bid close to collapse
Province refuses to offer 'blank cheque' for deficits
'Intense' political discussions as deadline nears
Oct. 24, 2006. 05:51 AM
JIM BYERS AND KERRY GILLESPIE
STAFF REPORTERS
Toronto's bid for the 2015 world's fair was hanging by a thread last night after a provincial official said Queen's Park can't afford to be the financial backstop.
"The province will not be the guarantor of an uncapped deficit," a spokesman for Tourism Minister Jim Bradley said late yesterday. "We're supportive of the bid and initiatives to attract tourists to Ontario and Toronto, but at a time when we're focusing on investment in hospitals and schools, we cannot afford to write a blank cheque.
"The federal government, on the other hand, has a large surplus available," spokesman David Oved said. "The province is prepared to continue to be a partner with the city, the federal government and private sector on the bid."
The city is ready to talk about limiting any deficit, but if the province opts out, the deal is dead, said the city's chief cheerleader for the 2015 World Expo, Councillor Brian Ashton.
"If they're talking about a cap (on the amount of deficit they could pick up), the city I think is quite prepared to negotiate something as part of a sound business plan," said Ashton (Ward 36, Scarborough Southwest). "But if they can't play any kind of role (in helping with a deficit) ... it simply kills the bid."
Ashton, however, said "intense discussions" were underway between the city and Queen's Park last night.
"We're trying to find a cost-sharing partnership on the financial guarantee," he said, adding he didn't know what form a partnership might take.
The Paris-based Bureau International des Expositions, which grants the world's fair to cities across the globe, requires bid countries to pick up any deficits that might occur. The city's bid is due at the bureau's offices on Nov. 3, but Ashton said the agency would likely be happy with a letter stating the issue will be taken care of and that details will be worked out later.
"All the BIE cares about is that there's a guarantor," he said.
The Conservative government in Ottawa yesterday said it likes Toronto's bid. But the Tories say federal law doesn't allow Ottawa to pick up a potential deficit.
The city has repeatedly said it doesn't have the financial wherewithal to pick up a deficit, which studies have suggested could reach $700 million.
It's possible the province is trying to squeeze Ottawa for a stronger, upfront cash commitment for such things as security, soil cleanup or transportation, or is hoping the city will open its wallet and provide more than just the needed land.
But "the clock is ticking," Ashton said.
A provincial source told the Toronto Star the city shouldn't be surprised that Queen's Park is wary of acting as the bid's financial safety net. But Mayor David Miller yesterday said his understanding was the province was ready to pick up a deficit.
Speaking with reporters about the Expo bid after addressing the Star's editorial board, Miller was asked, "Any financial deficit is supposed to be borne by the province, correct?"
"That's right, yes," the mayor replied.
"That's still the case?"
"Yes, that's my understanding. Those are the federal rules for these kinds of bids."
Ashton said he was under the same assumption as Miller on the province's willingness to pick up a deficit. He said the city isn't asking for millions of dollars in cash on an upfront basis.
"If there was a deficit of, say, $500 million, it would play out over 10 or 12 years and there would be revenues from taxes" that would more than outweigh the spending, he said.
Federal Treasury Board President John Baird said yesterday he likes the idea of a World Expo in Toronto. "I've had good discussions with the mayor (Miller) about it," he told the Star's Les Whittington in Ottawa. "It's important."
Speaking before Oved made his comments to the Star, Baird said Ottawa was waiting for Premier Dalton McGuinty's government to provide a guarantee that it will cover unexpected costs, as is required since 1995 by federal law.
Baird said Ottawa is aware of the impending deadline for Toronto's bid and will make a decision as quickly as possible after it hears from McGuinty on the cost guarantee.
The city's plan calls for Ottawa, Queen's Park and Toronto to share $2.8 billion in upfront costs to clean up contaminated soil, build pavilions and make other improvements in the city's derelict port lands.
Ashton said studies have shown Expo could generate $5.3 billion in taxes, mostly for the federal and provincial governments.
The federal government doesn't have to pick up any deficit but would be expected to pay for security costs and for a pavilion at the fair, he said. Most of the city's contribution would come in the form of land.
Expo backers last week unveiled a new theme for the fair: Sharing Our Planet.
Izmir, Turkey also has talked about bidding for the 2015 fair. There's been talk of bids from Milan and Moscow, but nothing formal has been announced.
Toronto lost bids for world's fairs in both 1998 and 2000.
AoD