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Local News

Feds hand Manitoba loot bag

Minister denies agreement is pre-election gift

The Harper government -- on the cusp of an election -- handed a $718-million deal to the province Friday to finish the Red River Floodway expansion and tackle anything else that qualifies as infrastructure renewal.

The total deal, including money that's already allocated, means Manitoba will get an unprecedented $853.86 million to fix roads, sewers and water systems over the next six years.

The money comes just under the wire -- the province was the last in the country to sign on to the federal Building Canada Fund -- as Prime Minister Stephen Harper is expected to call an election Sunday.

"Whew," joked Premier Gary Doer shortly after the deal was signed at a ceremony at The Forks. "This is a very significant, positive step forward."

Not included in Friday's package is federal funding toward a new football stadium for the Winnipeg Blue Bombers. But that may still come soon -- with the University of Manitoba as the preferred site.

Senior Manitoba MP and Treasury Board president Vic Toews said the stadium doesn't qualify for funding under the Building Canada Fund.

Instead, he said funding could be made available under Ottawa's public-private-partnership fund which has about $1.25 billion sitting in it. The fund helps private business to partner with government on large projects.

Toews said he was recently briefed on Canwest Global executive vice-president David Asper's plan for a stadium at U of M. Talks are ongoing, he added.

Plans for a new stadium at Polo Park fell through in the spring when Ottawa and the province balked at spending money -- $25 million from the province and $15 million from Ottawa -- without any large-scale public benefit. A second development plan for South Point Douglas also fell apart when the cost of land assembly and road re-routing became prohibitive.

Doer said the province negotiated for months with Ottawa over the infrastructure deal. The stumbling block centred on which level of government would ante up what for the final phase of expanding the Red River Floodway.

Doer said the dispute was solved when both sides agreed to a compromise -- Ottawa would kick in more in one area if the province spent more in another.

Doer and Infrastructure and Transportation Minister Ron Lemieux said Manitoba came out ahead.

Manitobans will notice the difference in newer roads and better water quality, especially on Lake Winnipeg as more money can be spent on sewage treatment, they added

"Just because we've been negotiating doesn't mean we've been standing still," Doer said. "At the end of the day you push as hard as you can."

Federal Infrastructure Minister Lawrence Cannon, in Winnipeg to sign the deal, denied the deal was reached because of the pending election call.

"It's not as if we're committing to something that's not there," he said, adding much of the announced funding has already been budgeted and many projects, such as the floodway, are well underway.

Some of the new money will also go toward helping Winnipeg upgrade its three wastewater treatment plants and sewer system.

Rural wastewater plants also could see upgrades.

bruce.owen@freepress.mb.ca

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