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Halifax scraps 2014 Commonwealth bid
The two levels of government pulled the plug amid increasing criticism about the growing cost of the Games and the lack of transparency in the bid process.
Last month, some city councillors said they would withdraw their support if the final estimated price tag exceeded the initial estimate of $785 million.
On Thursday, the city and the province revealed the bid budget, with inflation factored in, was more than double the original estimate.
"The province of Nova Scotia has always said we would only support the Games if they are the right size for the province," Barry Barnet, the province's health promotion minister, said at a news conference.
He said the province was committed to contributing $300 million to the Games. The federal government had said it would spend $400 million if Halifax won.
"With a budget projection of $1.7 billion, this was simply beyond our reach," said Barnet.
Premier Rodney MacDonald has said the federal government's commitment was based on inadequate information and, as a result, was too small.
Bruce DeVenne, the Halifax man who led public opposition to the bid, said the decision was good news because the city will not be saddled with a huge debt.
"When you look at the reality of what these games cost . . . this is a good thing for Halifax homeowners," he said in an interview.
DeVenne said the escalating cost of the event mirrored a pattern set in other cities that have bid for the Games.
An independent analysis also revealed a number of "significant risks" for the provincial and municipal governments.
The risks included:
-Questionable revenue projections.
-A higher than anticipated requirement for public funding - estimated at 92 per cent.
-Insufficient contingency funding, which would have left the province vulnerable to cost overruns.
Halifax Mayor Peter Kelly said the concerns raised by the report were too big to ignore.
"We were hopeful we would be in a position to support the Games but . . . we cannot support going forward," Kelly said in a news release.
"We will not jeopardize our fiscal position."
The mayor said costs were driven up by the fact Halifax would have to build a new stadium and other facilities to stage the Games.
Halifax beat Hamilton, Ottawa and suburban Toronto's York Region in December 2005 to become Canada's candidate to host the Games.
The cost of preparing the Halifax bid has been pegged at $14.3 million, with the province and Ottawa each contributing $3.5 million, the city $3 million and the rest coming from corporate sponsorships and merchandising deals.
Secrecy surrounding the Halifax bid undermined public support amid widespread speculation that the final cost would be much higher than anticipated.
In January, the head of the bid committee, CEO Scott Logan, admitted he had been too cautious about disclosing information.
With Halifax out of the running, the remaining contenders for the games are Glasgow, Scotland, and Abuja, Nigeria.
Final bids are supposed to be filed with the Commonwealth Games Federation in London, England, by May 9.
The winner will be announced in November.
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Good job Nova Scotia, you don't need that much debt.
The two levels of government pulled the plug amid increasing criticism about the growing cost of the Games and the lack of transparency in the bid process.
Last month, some city councillors said they would withdraw their support if the final estimated price tag exceeded the initial estimate of $785 million.
On Thursday, the city and the province revealed the bid budget, with inflation factored in, was more than double the original estimate.
"The province of Nova Scotia has always said we would only support the Games if they are the right size for the province," Barry Barnet, the province's health promotion minister, said at a news conference.
He said the province was committed to contributing $300 million to the Games. The federal government had said it would spend $400 million if Halifax won.
"With a budget projection of $1.7 billion, this was simply beyond our reach," said Barnet.
Premier Rodney MacDonald has said the federal government's commitment was based on inadequate information and, as a result, was too small.
Bruce DeVenne, the Halifax man who led public opposition to the bid, said the decision was good news because the city will not be saddled with a huge debt.
"When you look at the reality of what these games cost . . . this is a good thing for Halifax homeowners," he said in an interview.
DeVenne said the escalating cost of the event mirrored a pattern set in other cities that have bid for the Games.
An independent analysis also revealed a number of "significant risks" for the provincial and municipal governments.
The risks included:
-Questionable revenue projections.
-A higher than anticipated requirement for public funding - estimated at 92 per cent.
-Insufficient contingency funding, which would have left the province vulnerable to cost overruns.
Halifax Mayor Peter Kelly said the concerns raised by the report were too big to ignore.
"We were hopeful we would be in a position to support the Games but . . . we cannot support going forward," Kelly said in a news release.
"We will not jeopardize our fiscal position."
The mayor said costs were driven up by the fact Halifax would have to build a new stadium and other facilities to stage the Games.
Halifax beat Hamilton, Ottawa and suburban Toronto's York Region in December 2005 to become Canada's candidate to host the Games.
The cost of preparing the Halifax bid has been pegged at $14.3 million, with the province and Ottawa each contributing $3.5 million, the city $3 million and the rest coming from corporate sponsorships and merchandising deals.
Secrecy surrounding the Halifax bid undermined public support amid widespread speculation that the final cost would be much higher than anticipated.
In January, the head of the bid committee, CEO Scott Logan, admitted he had been too cautious about disclosing information.
With Halifax out of the running, the remaining contenders for the games are Glasgow, Scotland, and Abuja, Nigeria.
Final bids are supposed to be filed with the Commonwealth Games Federation in London, England, by May 9.
The winner will be announced in November.
----------
Good job Nova Scotia, you don't need that much debt.