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Tax Dollar Tower

Author: Colin Craig 2012/01/20

Staff at the Canadian Museum for Human Rights - a new federal museum in Winnipeg, apparently think it's a "disservice" to taxpayers for us to critique the fact the museum leaves out important details when it reports the cost of the museum to the public.

You see, in December, it was reported that the cost of the Canadian Museum for Human Rights had climbed from $310 million to $351 million (Note: when the government initially approved the project, it was expected to cost $265 million.)

If only that were true.




The Black Rod Blog pointed out that the figure did not include the cost of a "theatre and temporary gallery space." That's akin to a car dealership reporting the price of a car, but not including the cost of the seats. Sneaky indeed.

Kudos to the Winnipeg Sun's Tom Brodbeck for also digging into the cost figures and exposing the fact that the left out expenses amounted to $6.5 million, bringing the museum's total price tag to $358 million.

After Tom broke that story, I was asked for comment by two media outlets - the Winnipeg Sun and one with CTV News.

I noted that the museum needs to stop "dribbling out the information." After all, it's a "human rights" museum for goodness sakes - it should be transparent with taxpayers! Not to mention the fact it's a federal crown corporation so taxpayers should have the right to know on that basis alone.

Anyway, the comments didn't sit well with the museum, their communications director had the audacity to suggest my comments were "irresponsible, unfounded, and a disservice to taxpayers, the public, and the Sun's readership."

She even had the audacity to suggest the Sun's comments about being the first reporting to report the news was "untrue." While the Winnipeg Free Press reported previously that the new cost overrun figure did not include such amenities, it did not however, report the real total figure; including the $6.5 million gallery and theatre. Thus, it's a bit much for a government spokesperson to slam the Sun for boasting that it reported the real total first.

To read the letter we received from the Museum, click here. My response can be viewed below.

One thing is for certain, the museum needs to spend less time spinning the media and hiding facts from the public. More time should be spent on getting cost overruns under control. The project is quickly becoming nothing short of a "Tax Dollar Tower."


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Hi Angela,

Thank you for your recent correspondence regarding my comments in the Winnipeg Sun on the Museum’s latest cost overruns. I also appreciated receiving a copy of the museum’s 2011-2012 Corporate Report.

I reviewed the report, but had trouble finding reference to the $6.5 million cost estimate for the “theatre and temporary space.” I then searched electronically, but still could not locate the figure.

I also searched for “theatre” electronically in the 2010-11 and 2009-10 corporate reports, but did not even come across a mention of it let alone its cost estimate. Could you please indicate when the museum has publicly noted the $6.5 million cost estimate publicly prior to the Winnipeg Sun publishing that figure? Could you also indicate if the museum has ever included that component of the project in estimates released to the public for the ‘new’ total cost of the museum?

Regardless of whether of the disclosure of the $6.5 million figure has been disclosed separately or not, I think you’re missing the point. That component is part of the project and should therefore be included in the total; taxpayers deserve such transparency. Until such costs are included in the total, we will continue to critique the "dribbling" out of information by the museum.

Further, in the spirit of transparency, could you please provide documentation on the museum’s need for “bridge financing?” I am particularly interested in the museum’s understanding of what assumptions the Friends of the Canadian Museum for Human Rights have made for multi-year donations. 

For example, as you know, the Government of Ontario has committed $5 million over 10 years. Assuming a discount rate of 4 per cent that works out to approximately $4.2 million in today’s dollars.  Have the Friends discounted future donations or have they reported them to the museum and public at face value? If they have been discounted, what rate was assumed?

On another note, in light of cost overruns, has the museum had any further discussion about whether or not the golden, defined benefit employee pension plan that the museum decided to join will be reconsidered? You may recall, I raised the matter in a meeting back in 2009. At the time, museum officials were not aware of the fact that approximately 75 per cent of private sector employees had no workplace pension plan whatsoever. 

Finally, could you please indicate if the museum has had any discussions around whether or not a taxpayers’ rights exhibit will be included? 

As you know, when the museum and/or “The Friends” obtain financial commitments from government (subsidies, tax breaks and other support), taxpayers themselves are stripped of the basic “human right” to decide if they wish to support the museum voluntarily. Will that irony be addressed in any of the exhibits?

Thank you for your attention to this correspondence. 

Colin Craig,
Prairie Director – Canadian Taxpayers Federation

PS – I have copied the Winnipeg Sun on this matter in case they would like to discuss your contention that they published “untrue” statements. As you will recall, your letter noted -“Assertions by the Winnipeg Sun that the publication was the first to report on this matter are simply untrue.”


 


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