New Brunswick

Moncton won't divert federal funds to downtown centre, mayor says

Moncton Mayor George LeBlanc is trying to provide some clarification in the ongoing debate over funding for the proposed downtown centre and whether federal money could be used for the project.

Federal infrastructure money would 'free up' city funds for proposed $107M centre, says George LeBlanc

The City of Moncton is trying to provide some clarification in the ongoing debate over funding for the proposed downtown centre.

Moncton Mayor George LeBlanc says if the federal government agrees to fund infrastructure projects, such as storm sewers, that would free up city money to put toward the downtown centre. (CBC)
In an emailed statement to CBC News on Friday afternoon, Mayor George LeBlanc said the city does not intend to divert federal funds from infrastructure projects to build the $107-million sports and entertainment complex on the former Highfield Square property.

"The infrastructure projects for which we have applied are related to storm sewers, buses and upgrades to Elmwood Drive," said LeBlanc.

"If approved, these projects will free up the city's financial capacity to partially fund the downtown centre," he said.

Moncton Member of Parliament Robert Goguen has suggested that the funding of infrastructure projects amounts to federal financial support for the downtown project.

But a statement from Infrastructure Canada, issued to CBC News on Friday morning, states unequivocally that the federal government does not financially support the centre, which would be the home of the Moncton Wildcats, of the Quebec Major Junior Hockey League.

"Facilities that will be used by professional or semi-professional sports, including major junior hockey, are not eligible for federal funding," James Clow, a spokesperson for Infrastructure Canada, stated in an email.

"This policy has been applied consistently across Canada for projects of this nature," stated Clow.

Amateur sport and recreation projects are eligible for funding under the federal gas tax fund, he said.

Moncton MP Robert Goguen has suggested the funding of infrastructure projects amounts of federal financial support for the downtown centre. (Marc Genuist / CBC)
Goguen has been saying $23.5 million in federal funding for the downtown centre is a certainty if the province agrees to pay a similar amount. However, ACOA Minister Rob Moore and Finance Minister Joe Oliver have not made a similar commitment.

On Thursday, Goguen said the city is already redirecting federal money toward the downtown centre. He points to a $2-million subsidy Moncton receives from Ottawa to pay for work done by Codiac RCMP that relates to federal responsibilities.

Goguen says the city doesn't have to use that funding for police services and in fact, it hasn't.

"If you look at the books of the City of Moncton, they took that 20 per cent saving which is about $2.2 million per year and they put it into a fund and used that money to purchase the Highfield Square land, so the funding was for the RCMP, it went into a general fund and the city they redirected the funds for their priorities." he says.

Moncton spokeswoman Isabelle Leblanc confirms the city used the RCMP subsidy for the land purchase.

"Yes, we are using the 10 per cent bump in federal subsidy for the RCMP. Ourselves and MP Goguen fought hard to obtain and set it aside in a reserve to help fund the land purchase for the downtown centre."

Moncton lobbied for many years to receive federal funding for the RCMP, saying it was the only city in Canada that didn't get a subsidy.

In 2012 the federal government agreed to give approximately $2 million annually.

Goguen says there is nothing to prevent the city from using that money for other purposes.

"We fund the project, it goes into their general pool of money and they redirect that money. They are in fact taking that funding allocated for one project and the municipality is then redirecting it." he said, suggesting the same type of accounting can be used with infrastructure projects.

He says federal money for roads or sewers could be redirected to the downtown centre if the city so wishes.

Federal funding approved for a specific project must be used for that project.- James Clow, Infrasture Canada spokesman

However, Infrastructure Canada has a different view.

"Federal funding approved for a specific project must be used for that project," stated Chow in response to a question about whether federal infrastructure funds can be redirected to a project that is not eligible under the program.

"To ensure this is the case, funding agreements are signed with project proponents. These agreements include eligibility and financial conditions that funding recipients must respect."

Finance Minister Joe Oliver visited Moncton on Thursday. When asked about this accounting practice, Oliver said: "There are ways to provide funding directly and indirectly. It's not my portfolio so I can't comment on it, but we're going to look at every project that has merit and see how we can help out."

Goguen has been criticized for saying the $23.5 million in federal money for the downtown centre is a sure thing if the province agrees to pay a similar amount. Neither Rob Moore, the minister for ACOA, nor Oliver the federal finance minister would make a similar commitment.

Goguen denies having overstated his case.

"Have I overstated it? I'm hopeful that I haven't. We're going to try to come as close as possible to $23.5 [million]. Will I succeed? Well I'm going to keep fighting."