Taxpayers Group Opposes WCB's Risky Investment in True North

WINNIPEG: The Canadian Taxpayers Federation cautions the Manitoba Workers Compensation Board not to provide financial assistance to the owners of the True North Entertainment Centre.

Today, the WCB announced that it would provide a $7.5 million line of credit to the True North group. The WCB has not indicated the interest rate or the rate of return it expects to yield from the line of credit.

"The True North arena is a risky business venture propped up primarily by government subsidies and concessions, said Victor Vrsnik, CTF Provincial Director. The WCB should not put at risk accident insurance premiums on an arena project that has yet to make public a business plan."

The CTF calculates that the total government package to the True North owners is in excess of $250 million in 25 years for a project estimated at $125 million. In other words, taxpayers will end up subsidizing the operating costs of the arena.

"More and more the True North arena resembles a public works project disguised as a private sector initiative," concluded Vrsnik.