[mobglob-discuss] No Games Review of CCPA Cost-Benefit Analysis

[Bella]

FOR IMMEDIATE RELEASE
FEBRUARY 21, 2003

SUMMARY COMMENTS

CANADIAN CENTRE FOR POLICY ALTERNATIVES – (CCPA)
2010 GAMES COST-BENEFIT ANALYSIS – FEB. 14/03
 
THE NO GAMES 2010 COALITION has completed its review of the above
Analysis.  It is the only Cost-Benefit Analysis we expect to see on this
subject.  The Federal and Provincial Governments choose to ignore their
own guidelines to initiate such an Analysis and the Bid Corporation
continues to rely on meaningless economic impact statements.  Today, we
concentrate on just two issues contained in the Analysis.

PREVIOUS FINANCIAL DATA RELEASED IS NOT RELIABLE

“The 2010 Games will not “pay for themselves”.  This analysis indicates
that the net financial cost of the Games to British Columbians is $1.23
Billion”.

"If Vancouver hosts the 2010 Winter Olympics, there will be a substantial
net cost to British Columbians in the order of $1.23 Billion, even taking
into account increased tax revenues and the benefit of not having to
upgrade the Sea-to-Sky highway at a later date.” 

“And, as the sole guarantor of the Games, the Province of British Columbia
is assuming all the financial burden of what is clearly a risky business
venture.”

Simply put, hosting the 2010 Games is a money loser.  It is a money loser
including “games” revenues.  There are no private sector risks or PPP’s. 
The Province and Bid Corporation want British Columbian taxpayers to
assume a minimum $1.23 Billion Dollar debt, after “estimated games
revenues” are included. 

Further, the following costs and risks have not been factored into any
Report or Analysis:


ALL FINANCING COSTS

ALL CONSTRUCTION COSTS OVER RUNS

ALL REVENUES SHORTFALLS

ALL FOREIGN EXCHANGE RISKS

ALL UNANTICIPATED SECURITY RISKS

UNKNOWN ENVIRONMENTAL IMPACT COSTS PROVISIONS

No financial numbers have been applied to these additional costs elements
and risks.  As such, we submit that the $1.23 Billion loss to British
Columbian taxpayers is the absolute minimum amount you can expect to pay. 
We submit that the actual costs will be substantially higher, if the Games
are “awarded” to Vancouver/Whistler.


ECONOMIC IMPACTS

“Claims by some proponents that the Games will generate over $10 billion
in Provincial GDP and more than 200,000 jobs grossly exaggerate the likely
impacts”

“The incremental employment generated by the Games is estimated to range
between the equivalent of 1,500 and 5,600 full time, continuing jobs over
the seven years the Games are estimated to have an impact.”

“Based on a net (minimum) cost of $1.23 Billion Dollars for hosting the
Games, the effective public subsidy would be $220,000 per job, and
possibly as high as $820,000 per job.”


SUMMARY

We suggest the above quotes provide the main reason why neither the
Provincial Government, nor the Bid Corporation chose to initiate their own
Cost-Benefit Analysis.  

We question their motives for not doing so.

PLEASE CONSIDER THE ABOVE AND VOTE “NO”.

Contact:
Perry Kates
No Games 2010 Coalition
perrykates at shaw.ca
604-688-0760

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