A.G.'s Report On Olympic Spending Released
By 250 News
Thursday, September 14, 2006 10:32 AM
Provincial Auditor General Arn van Iersel is calling on the Province to keep a closer look at the dollars and cents being spent on the 2010 games. He says it is the Province which is the guarantor and would ultimately be left responsible for cost overuns.
Here are some of the other points:
- focus its attention on possible costs that could arise as a result of various guarantees and indemnities;
- ensure the effective management and oversight of the Olympic and Paralympic operating and capital budget risks; ensure an effective marketing of the Games to achieve the projected economic benefits;
- coordinate its hedging strategies with VANOC’s to protect foreign-sourced revenues; and
- enhance accountability and transparency to ensure the total cost of the Games is reported to the public.
He also called on the Province to get a more specific cost estimates for security, currently, that estimate is $170 million dollars. Economic Development Minister, Colin Hansen says there is nothing to indicate those costs would see any significant increase and there is enough in the contingency fund to cover increases, however, he noted the Prime Minister has indicated there may be a need to be flexible on those costs.
Hansen also notes the Auditor General seems tp agree that the spending budget is on track ($600 million). Yet, the Auditor General says the balance in the contingency fund may not be enough. He also says the Games could cost the Federal, Provincial governments and other third parties an estimated $2.5 billion.
Who will pick up the tab if the costs run over budget? The short answers is, B.C. taxpayers.
The Province has an agreement with both the International Olympic Committee and the Federal Government that releases those two entities from picking up the tab for cost over runs.
Van Iersel recognizes there will be lasting legacy benefits associated with the Games, but adds no new information on the potential economic value of those benefits to the province has been made available.
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Posted by: ammonra on September 14 2006 7:56 PM