2010 Olympics: A possible financial disaster?

[GordonH]

In the developing news of the Olympics going over budget, has there been any accounability on the part of the Big Brains assembled to stitch this rag toether?

Since my brain is a small one, let's take these numbers down to a workable scale.

Once upon a time, in a land near the ocean and mountains, I went to buy a new car. The nice salesperson says it will cost around $13,500 (sorta reminiscent of the $135,000,000 original security budget nes pas?) I was happy and signed the papers and then headed off to see the happy banker at the Scotiabank to get the cash from saving OK...line of credit.

I head back and the salesman says "Here is your shiney new car. You signed the papers but now it costs $95,000" (see the similarity with the billion dollar new estimate)."

"Isn't it a pretty red?" he added.

So I hop on Skytrain and head back to the Scotiabank and tell the nice banker that I just bought a $13,500 Chevrolet for $95,000.

My banker shakes my hand and offers me an envelope with the VanOC little rock logo on it. She tells me there are money tree seeds in the envelope and I should plant them in my yard. The tree will yield me vast returns once the car has rusted away to a hulk.

And everyone lived happily ever after.

Sorry... I still don't get it.

Don't worry now wait the budget will have a few more changes to go before the opening ceremonies.

[Devil's Advocate]

All I can say is I am REALLY TICKED OFF!!! I can't believe that I am actually contemplating voting NDP in the next provincial election. HEY, what more could an NDP government cost us than the FIASCO this Liberal government is!!!

All my life I have voted against NDP... I am a staunch "free enterpriser", but today I am thinking of throwing all caution to the wind and blowing out poor management even at the expense of living under a socialist party... Like I said, how much worse could it be? And I could enjoy a pat on the back and praise of my teacher buddies.

[GordonH]

All I can say is I am REALLY TICKED OFF!!! I can't believe that I am actually contemplating voting NDP in the next provincial election. HEY, what more could an NDP government cost us than the FIASCO this Liberal government is!!!

All my life I have voted against NDP... I am a staunch "free enterpriser", but today I am thinking of throwing all caution to the wind and blowing out poor management even at the expense of living under a socialist party... Like I said, how much worse could it be? And I could enjoy a pat on the back and praise of my teacher buddies.

Hey DA you may want read this sitting down http://www.timescolonist.com/Sports/rea ... story.html

[Devil's Advocate]

Hey DA you may want read this sitting down http://www.timescolonist.com/Sports/rea ... story.html

That is just a plain stupid article! I am fed up. While we are committed to the 2010 Winter Games it does not mean we should just roll over and let the government scratch our bellies saying "good doggy, now continue to behave and we'll give you a bone" because that is not going to happen. THIS government is an abusive master that needs a good bite back! This is utter BS. I have thought when they first went forward with it that it might coincide precisely with a most inappropriate economic climate and so it did. And I'm just an average joe. You don't think they have intelligent enought people to have forecast the folly of it? "OH BUT THIS IS GOOD FOR OUR ECONOMY AND COULDN'T COME AT A BETTER TIME WITH ALL THE SHOVEL READY PROJECTS REQUIRED BY THE OLYMPICS" BS! That is utter Keynesian crap that governments all over the world are trying. Keynesian crap economics which is nothing less irresponsible than the consumer behaviour governments blame for having gotten us here in the first place!

[Glacier]

Did anyone seriously think the BC Government was not lying when they initially stated the security costs of the Olympics? http://www.cbc.ca/canada/british-columb ... ansen.html

Either than or they were incredibly stupid because I remember at the time the security budget was initially announced every expert said the government was out to lunch and that the true figures would be closer to 1 billion. How stupid do they think we are?

[GordonH]

DA, A little off topic Alan Greenspan pick his retirement just at the right time. Did he see what was coming? No answer needed, just something I am thinking about.

[Devil's Advocate]

DA, A little off topic Alan Greenspan pick his retirement just at the right time. Did he see what was coming? No answer needed, just something I am thinking about.

Duh

[Devil's Advocate]

$7,000,000,000 divided by 4,500,000 British Columbians equals $1,555.56 per British Columbian man, woman and child. Do I have those zeros right? $7 billion and 4.5 million population of British Columbia in 2009? Does pale in comparison to the $175,000 each man, woman and child US citizen owes in federal debt and commitments though I suppose. STILL I am ticked!!!

And the real *bleep* of it is I can't get tickets to go to the party I am throwing!!!

[RR24K]

My hears are ringing. DA here's a post of mine from page 2 of this thread


So the taxpayers of Toronto luck-out when the wacky mayor made his comments and lost their bid. Save Ontario very big financial headache. Don't get me wrong here I do not condone former Mayor Mel Lastman comments.

[Al Czervic]

Just a comment on this Olympic fervor. Let’s keep in mind that it was the NDP who started the Olympic project much as it has been the Liberals who have carried it on as well. In other words; rightly or wrongly both democratically elected governments were in full support of the Olympic Games.

Further Vancouver Residents actually got to vote on it the Olympics; there was a strong voter turnout and 64% voted in favor of hosting the games. 64% is a huge mandate in BC Politics.

BC WON the bid fair and square. Unfortunately with winning the bid comes responsibilities and those regrettably in this case carry significant costs. However there is little point in calling sour grapes after the fact and finger pointing now.

Basically we have a choice; the money is now going to be spent regardless of what anyone does politically or otherwise. So we can ether get behind the games and try to ensure they are as huge a success as possible and thereby get a return on this massive financial investment. Or we can sit around and complain like spoiled school children because we did not have the 20/20 hindsight we now believe we should have had.

It’s time we grow up and make the best of this situation. Whining and crying like school children will only make this situation worse. Expo 86 had a huge positive impact on BC in spite of what the naysayers all said and the Olympics can be an even bigger opportunity for BC if we choose to get off our collective *bleep* and support it. We can either lead; follow or get out of the way. To all the crybabies out there I suggest you suck it up. We are in this mess together and we must work together positively to make the most of it. Let’s lead; be positive and set an example. Bottom line it is money being spent in BC and putting British Columbians to work at time when that work is very much needed.

[NAB]

Erm, unless I have missed something, that "work" has pretty much been completed (exception the athletes village of course), and through high flying pre-recession times. I am hard pressed to see much in the way of Olympic related future work (jobs) that will help us through the hard times we now face. Let's not forget either that much of the expense being complained about has little to do with providing 'work" (jobs) - but is in fact the result of huge cost overruns and long term debt servicing costs associated with "work" (jobs) that was/were already budgeted within numbers that we now find were largely underestimated. Much of this has to do with accellerated costs outside the basic Olympic Committee budget, but still furthered in order for them to compliment the Olympics.

Nab

[Devil's Advocate]

"If you look at what the economists are forecasting, they are saying that in 2010, B.C. is going to lead Canada out of economic recovery. We have the Olympics coming, we have a strong economic base and as we start to see the world economy start to come back, that actually plays into some of the strengths that B.C. has." Colin Hansen I call BS Spin.

Unfortunately for Campbell and the BC Liberals that will be too late and they will find themselves ousted in the next provincial election on Tuesday, May 12, 2009.

I have always, ALWAYS, voted against socialism (NDP) but this likely will change my habit. Governments are all becoming socialist tyranical bullies. That Vancouver was given the opportunity to vote in a referendum on the 2010 Winter Games at the expense of the rest of the province is utter BS.

As far as I am concerned if your going the direction of socialism lets get there NOW without the Liberal Mask and quicksand economy that illicit political behaviour brings about.

[steven lloyd]

BC WON the bid fair and square. Unfortunately with winning the bid comes responsibilities and those regrettably in this case carry significant costs. However there is little point in calling sour grapes after the fact and finger pointing now. Basically we have a choice; the money is now going to be spent regardless of what anyone does politically or otherwise. So we can ether get behind the games and try to ensure they are as huge a success as possible and thereby get a return on this massive financial investment. Or we can sit around and complain like spoiled school children because we did not have the 20/20 hindsight we now believe we should have had.

Good point. The Olympics is going to go ahead.

It’s time we grow up and make the best of this situation. Whining and crying like school children will only make this situation worse. Expo 86 had a huge positive impact on BC in spite of what the naysayers all said and the Olympics can be an even bigger opportunity for BC if we choose to get off our collective *bleep* and support it. We can either lead; follow or get out of the way. To all the crybabies out there I suggest you suck it up. We are in this mess together and we must work together positively to make the most of it. Let’s lead; be positive and set an example. Bottom line it is money being spent in BC and putting British Columbians to work at time when that work is very much needed.

I agree Al. We absolutely need to make the best of this. We need to work together to ensure all British Columbians benefit from the investment being made by everyone for the Olympics and not just an elite few benefit while the rest of us pay. It is critical, therefore, that we work together to remove the current criminal regime from power. It is not too late. There is still time to hold Campbell and his ilk accountable for their criminal actions.

[Captain Awesome]

It’s time we grow up and make the best of this situation. Whining and crying like school children will only make this situation worse. We can either lead; follow or get out of the way. To all the crybabies out there I suggest you suck it up. We are in this mess together and we must work together positively to make the most of it. Let’s lead; be positive and set an example. Bottom line it is money being spent in BC and putting British Columbians to work at time when that work is very much needed.

Finally somebody with clear mind. Too much crying lately. Oh wait, there's always too much crying.

[NAB]

Make the best of it we might regardless, (no choice I suppose at this point), but the thread topic has to do with "2010 Olympics..A possible financial disaster?" ...and on that front there is plenty to be concerned about.
Nab

Vancouver takes credit hit over Olympic costs
Article Comments (66) The Canadian Press

February 20, 2009 at 12:18 PM EST

Toronto — Debt rating service DBRS has downgraded the City of Vancouver by one notch from AA (high) to AA, and said Friday the trend is negative because of the financial sinkhole at the Olympic Village.

“The rating action is the result of the recent announcement by the city that it has started drawing on a credit facility recently set up to address the financial problems of the Vancouver Olympic Village, which is expected to boost debt substantially, along with significant uncertainty regarding the financial outcome of the project,” the Toronto-based rating agency said.

DBRS had placed Vancouver's rating under review in mid-January after the municipal government said it would undertake borrowing for the 1,100-unit False Creek project as the lender had stopped advancing funds in September because of cost overruns.

The village, after housing athletes for the 2010 Winter Games, is to be converted into 850 market-priced homes and 250 units of social housing.

DBRS noted that the construction budget, originally $750-million, is estimated to have risen by $125-million.

Following a legislature vote granting the city unlimited authority to borrow for the village, Vancouver announced Thursday it had arranged a $400-million revolving line of credit.

Of this, $90-million has been used to buy out the original lender along with $240-million from municipal reserves. The city has also advanced $134 million to the developer since September.

Its $464-million investment to date leaves more than $400-million needed to finish the project by the November deadline.

“As a result, tax-supported debt is expected to grow well beyond $2,000 per capita by the end of 2009 ... a level not consistent with a AA (high) rating,” DBRS said.

“Furthermore, the sizable payments made from the reserves have significantly depleted the working capital and considerably reduced the financial flexibility of the city.”

DBRS also noted “considerable uncertainty” about possible further deterioration of the project and how much will eventually be realized from selling the housing units.

“As a result, the downward pressure on the city's rating is expected to remain high over the next 12 to 18 months.”