The provincial Public Accounts for the 2010/11 fiscal year were released Thursday. Reporters and the public will be digging through the records over the next few days, but one thing jumps out immediately: the transfer of $5,003,641.60 from the Department of Economic and Rural Development to Trade Centre Limited (page 101).
TCL spokesperson Neal Alderson tells me this reflects a “one-time grant” of $4.8 million to address collective TCL operating deficits dating back to the 2004/05 fiscal year. “It was in our business plan,” he says, seemingly suggesting that I should’ve known about this, and it’s not a big deal. Well, sorry; although it seems like it sometimes, I don’t pour through every TCL document, and the deficit reduction has never been reported, so far as I can tell.
But since we’re on the subject, here’s how the deficit reduction is explained in the business plan (page 286):
Forecasted financial results for the current fiscal year (2010–2011) are an operating profit before depreciation of $4 .45 million for TCL and a profit after depreciation of $2 .9 million . TCL’s forecasted 2010–2011 financial results reflect a one-time grant from Economic and Rural Development and Tourism to TCL to address accumulated operating losses dating to fiscal 2004–2005 . Forecasted financial results for the current fiscal year (2010–2011) for Halifax Metro Centre are an operating income before capital expenditures of $276,500 . In 2011–2012, TCL expects to generate revenues of approximately $13 million . In 2011–2012, Halifax Metro Centre expects to generate revenues of approximately $7 million, resulting in operating income before capital improvements of $610,000.
That’s a hell of a convoluted way to say they’re $5 million in the hole. Note that the dollar amount of that one-time grant is never mentioned in the business plan.
So, yea, the $5 million hit to taxpayers is news.
This article appears in Jul 28 – Aug 3, 2011.
Hooray for Fast Freddy M!
Do you remember when the business community were putting his name forward as mayor?
Remember when the business community was putting Freddie’s name forward as a “strong” Candiddate for mayor?
If I recall Don Mills, with his new political party Citizens for Halifax, were pushing him pretty hard.
if only all business could get a grant to cover millions in debt. nice gig if you can get it.
Freddy couldn’t get a job as dog catcher.
The folks at IGA rumbled him a long time ago and put him out to pasture.
Isn’t it the Metro Center’s cash flow where Major (for a short time) Kelly was able to access funds to work around council. When will we see an audit of WTCC and the Metro Center?
Okay are we NOW getting an investigation where we will also fire the Econo Ministers??? This is just beyond retarded and micmics the cash bailout stupidness to the south ……I live in poverty due to disabilities due to being a victim of public servant crime and subsequent police brutality… I beg for every medical item/service I need..yet the govt is throwing around money in the wind…..what a fecking disgrace
And more tax dollars for WTCC is surprising – how? And we all know that the new CC and stadium will make fist over dollars and save us all.
5 million, wow. Tax money at work.
Thats still not a lot of money considering harper is going to spend 29billion on stealth fighter jets.
Do we really need 65 more death machines?
whatis-theplan(dot)org
Exactly Tanman; KELLY again. Let’s start counting. The concert scandals, the old lady’s estate he screwed, the conflict of interests he is involved in over and over again, Metro Center/WTCC cash flow or Kelly’s cash cow, how much don’t we know about?????????
I read that paragraph, it gave me a headache, good job for making a headline out of that mess.
So let me get this clear Tim. You are moaning once again about spending $500k a year to have a space in NS to connect our business community with companies and individuals from around the world? Please do a little more research around the economic activity that is generated from the service WTCC provides, and not only Hotel and Restaurant tax revenue, but the results of deals that are made at each trade show and get back to me. $500k. Get a grip.
Sorry $685k. aka peanuts.