The possibility of a taxpayer-funded hockey arena in Quebec City appears to have moved a step closer to reality with the federal government welcoming an announced injection of private cash from media giant Quebecor.
Quebecor’s president and CEO Pierre-Karl Peladeau, in his first public pledge to pony up his own money for the project, said he has offered “tens of millions of dollars” to help build the estimated $400-million facility.
Peladeau told reporters Sunday evening in Quebec City that negotiations are ongoing to come up with an agreement to build the rink, with the eventual goal of bringing the defunct Nordiques back to the provincial capital.
Ottawa has stressed that private-sector money would be a necessary condition for any federal investment in the project. The government applauded the latest development.
Christian Paradis, Prime Minister Stephen Harper’s political lieutenant for Quebec, said Sunday the interest from Quebecor is promising.
“Certainly it’s encouraging, because we’ve always said there would eventually be participation from the federal government if the private sector made major investments,” Paradis told Canadian Press.
“It’s going in the right direction. Remember that at the beginning it was supposed to be 100% financed with public money–and that was unacceptable. Now we see a new element, and that’s good.”
In September, Quebec City Conservative MPs illustrated their own eagerness by wearing the Nordiques’ old blue-and-white jersey to a public event.
Detractors have warned Ottawa to steer clear of committing public money to a project that benefits private enterprise–particularly at a time of enormous federal deficits.
A report by Equipe-Quebec–a group working to attract the Winter Olympics in 2022–recommends building an arena. But it also concedes the building would run a deficit unless it attracted an NHL tenant.
According to a study conducted by Ernst & Young, a new arena would bring in $8.4 million a year with an NHL tenant and $7.8 million without a professional club.
The cost of financing and maintaining an arena could be far higher. According to Claude Rousseau, president of Equipe-Quebec, the expenses would be between $36 million and $41 million annually, rendering the building unprofitable for a private business.
But over the longer term, the project would generate $500-$600 million over 40 years and governments would reap the benefits.
