The province of Nova Scotia and the Halifax Regional Municipality today, March 8, announced their respective intentions to formally withdraw their support from the bid to host the 2014 Commonwealth Games.
The two levels of government reached their decision based on the outcomes of the independent reviews which were conducted on the operating and capital budgets submitted to the funding partners at the end of January 2007. The bid budget, with inflation factored in, is close to $1.7 billion.
"We have said from the beginning that we would only support a bid that does not compromise the province's fiscal position, is the right size for Nova Scotia and leaves a lasting legacy for residents," said Mr. Barnet. "I am personally extremely disappointed with this outcome but the results of the independent assessments and our own due diligence process are clear. The risks associated with pursuing the Games are simply too high."
The 2014 Bid Committee developed a highly detailed bid submission in order to respond to the Commonwealth Games Federation and the stringent requirements put in place by the funding partners. The funding partners then contracted a team of consultants to begin analyzing the bid from a number of perspectives including legacy, value for money, revenue projections and economic impact.
The analysis revealed a number of significant risks for the provincial and municipal levels of government including: questionable revenue projections, higher than anticipated requirement for public funding (92 per cent investment of public funds), and insufficient contingency funding which could leave the provincial government vulnerable in the event of cost over-runs.
"Our commitment has always been to the taxpayers of this municipality," said Mr. Kelly. "We were hopeful we would be in a position to support the Games but, given the concerns raised through the consultants' reports, we cannot support going forward. We will not jeopardize our fiscal position."
The minister and the mayor also thanked the 2014 Bid Committee for their exemplary work over the past year.
"The process used in the development of the bid was thorough and complete," said Mr. Barnet. "Scott Logan, Fred MacGillivary and their team should be extremely proud of their efforts. We would also like to acknowledge and thank the government of Canada for its generous support throughout this project."
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Media Contacts:
Tracey Tawell
Health Promotion and Protection
902-483-1193
E-mail: taweeltl@gov.ns.ca
John O'Brien
Halifax Regional Municipality
902-490-6531
E-mail: obrienj@halifax.ca
