Two views of the Olympic Village: Carole James and Colin Hansen

Today in the B.C. legislature, the Olympic Village took centre stage as MLAs debated the Vancouver Charter Amendment Act, 2009.

It will give the City of Vancouver authority to borrow an unlimited amount of money to complete the Olympic Village without the need to hold a referendum.

Here are the Hansard draft transcripts of speeches in the legislature by NDP Leader Carole James and by Liberal Finance Minister Colin Hansen:

C. James: I rise to speak on Bill 47. I also want to say that the NDP intends to support Bill 47. But unlike the government, we don't believe that that support comes at the cost of scrutiny. It's precisely that lack of scrutiny that's at the root of spiralling Olympic costs and plummeting confidence in the Liberal government's truthfulness about those costs. It is that lack of scrutiny that created the need for us to be here to debate Bill 47.

Now to restore confidence, I would think that the Premier would be eager to demonstrate accountability. To restore confidence, I would think that he'd be eager to answer questions. To restore confidence, I would think that the Premier would want to come clean about the true costs of the Olympics and give us full time to debate Bill 47.

But true to form, the Premier has no such intention. True to form, this Premier is ducking accountability. True to form, the Premier is ramming through legislation in order to avoid legitimate and persistent questions about taxpayer liability for the games.

British Columbians deserve better than they're getting from this government. British Columbians are tired of this B.C. government's arrogance and neglect. They're tired of a government that is profoundly out of touch with their needs. They're tired of a government that won't come clean on Olympic spending.

In just four months they're going to send this Premier and every member on that side of the Legislature a message that will be heard across this province: it's time for accountability. They're going to say loud and clear that this Premier and this government have to come clean with the taxpayers on the costs of the Olympic Games.

We're here to debate Bill 47, an amendment to the Vancouver Charter allowing the city to borrow an unlimited sum of money. Now, it's not a complicated amendment, but its implications for taxpayers and the Winter Games are profound. The reasons for Bill 47's introduction in this chamber today are deeply troubling, deeply concerning to every British Columbian because those reasons involve a culture of government secrecy and arrogance — at the city with the past government, and right here in Victoria.

It's an approach that shuts citizens out and that treats taxpayers like they have an infinite amount of money to fuel Olympic cost overruns. Quite frankly, this Premier has forgotten that these are taxpayer dollars that we're talking about here, not his private fund for his pet projects in this province. It's an approach that has brought us to this chamber to help Vancouver taxpayers cope with a potential financial crisis.

Let me say first that I want to thank the new mayor of Vancouver and his council for demonstrating leadership and accountability on this issue. They've taken an important first step towards restoring public confidence. They're doing what they can to protect taxpayers from an extraordinarily bad deal.

That's one of the reasons we're here today dealing with Bill 47 — to help the city of Vancouver out of the financial mess that has been left to it. But with that comes responsibility to ask some tough questions of the Premier and of his government because try as they might, this Premier can't escape responsibility for this fiasco.

In fact, there's little doubt that the provincial government must have known what was going on with the Olympic village. After all, it was the provincial government that set up a series of reporting arrangements to ensure they would know. I want to take a moment to review those arrangements and the history that brings Bill 47 here today.

In the middle of 2006 VANOC came to the provincial and federal governments asking for more money. Both governments commissioned due-diligence reports as one of those conditions of considering that request. The report and a subsequent one, which were prepared by Partnerships B.C., made a number of recommendations to increase the flow of information and knowledge between the city and VANOC and between their partners in the provincial and the federal governments.

VANOC created a village advisory committee to oversee the completion of both the Vancouver and Whistler Olympic villages. The city's project manager, Jody Andrews, who this week resigned, met weekly with VANOC's project manager. Mr. Andrews also provided monthly written reports to VANOC.

VANOC's finance committee, according to its own public minutes, received reports regularly on both venues — the venue that we're here talking about today, the Olympic village venue that has brought this bill in front of us.

The co-chairs of VANOC's finance committee, who reviewed and considered these reports were — through this period and remain today — Ken Dobell, who reported to the Premier, and the CEO of the B.C. Olympic secretariat, who reports to the minister responsible for the Olympics. A direct reporting relationship between the special committee set up and the government. A direct reporting relationship on how things were going on the Olympic village between VANOC and their special committee and the government. Former city manager, Judy Rogers, was and still is a member of the finance committee considering those reports.

So what happened at the city of Vancouver during this time period? In May and June of 2007 former city manager, Judy Rogers, reported to city council that the Millennium group, the developer of the village, was in anticipatory default. In other words, Millennium was running out of money.

Under its various signed agreements, the city had an obligation to share that information with VANOC. When there was a problem with the exact issue on Bill 47 that we're here debating today — there was an issue around the financing of the Olympic village — the city had an obligation to share their information with VANOC. VANOC, through its finance committee, in turn shared information with the Premier, with the province, with the Finance minister.

Let there be no doubt. The Liberal government had to have known what was going on from the start. But as we all know now — and the reason we're here today debating this bill — they refused to share their knowledge with the people of British Columbia. As the spring of 2008 turned into the fall, the problems escalated. In April of '08 the city auditors reported publicly on the financial risk to the project and to the taxpayers.

As we all know, Millennium ran out of money. The financier, a New York hedge fund in deep financial trouble, escalated its demands. There followed a range of commitments by the city of Vancouver to underwrite both the developer and the financier in order to complete the development on time.

That's the sad history that brought us here today to deal with this bill. If one thing stands out, it's the fact that this government has refused to be open and transparent and accountable to the taxpayers of this province every step of the way. Taxpayers were put on the hook without their knowledge for hundreds of millions of dollars in overruns and carrying charges.

The final bill still isn't known, and we're here today providing, in fact, the ultimate commitment — an open-ended waiver allowing the city of Vancouver to borrow as much as it needs to complete the village.

Now, I've heard the government say that this isn't a blank cheque, but the government is wrong. This bill has no dollar figure attached to it. Most importantly, this bill has no accountability built into it. Things can just continue on the way they've been. The public will know only what the government decides it wants it to know.

Well, that's not good enough. Passage of this bill cannot and should not end the debate about Olympic costs. From this individual experience related to Bill 47, we have to leave this chamber with a plan to ensure ongoing oversight and accountability for Olympic spending. Taxpayers expect no less from their legislators than accountability for their money.

We're here debating a bill — Bill 47 — that gives the city of Vancouver the power to borrow an unlimited sum. That puts a special onus on all of us in this House to ensure the taxpayers are protected. So today I again repeat my call for the government to appoint B.C.'s Auditor General as the auditor for the 2010 games now. I believe the auditor should be charged with protecting the public interest and with ensuring highest standards of transparency and accountability for 2010 spending.

Mr. Speaker, had the government taken this step from the beginning, had they actually ensured independent oversight, we might not be here. The citizens of Vancouver would have known about this project and the risks long ago. Had this government actually done what they should have done, which is ensured independent oversight, the public might have a little faith in the Olympic numbers. Had the government ensured taxpayers had someone looking out for them, British Columbians might have some confidence that the games won't leave them with a legacy of debt and unpaid bills. If the government had done what it should have done, we might not have needed Bill 47 in front of us today.

Now, when we all welcome the world to B.C. next year, it's a moment that all British Columbians hope will be full of pride, a moment for the world to come together and to celebrate human achievement. But let's remember that successful Olympic Games are in tune with the times that they're staged in, and today in British Columbia and across the world, times are very uncertain. Next year, as we all know, the central credit union expects B.C. to lose 42,000 jobs — 42,000 jobs.

In British Columbia, families I talk to are worried about managing to pay their rent or their mortgage. They're worried about the declining value of their homes. They're worried about rising costs and stagnant wages, and some communities are just barely struggling to survive. Now more than ever, British Columbians can't afford Olympic cost overruns. Now more than ever, they can't afford scarce resources — their resources — to be diverted from fundamental priorities like health care and education. Now more than ever, British Columbians don't want the crowds to go home and all they're left with is a legacy of debt and red ink.

Now more than ever, British Columbians want their government to focus on the fundamentals, and that's what every member on this side of the Legislature is going to continue to do: to fight for the fundamentals in this province.

In coming into the Legislature to take a look at a piece of legislation, I had British Columbians in every corner of this province talking about their worries about a government introducing a piece of legislation that would put them on the hook for additional costs, that will put them on the hook for additional debt. Families in this province are tired of this Premier's pet projects. Families in this province want the Games to be a legacy for sport, a legacy for people, a positive legacy for the economy, a legacy in which we can take great pride. But that legacy is threatened, threatened by spiralling cost overruns, threatened by this Premier's refusal to come forward and tell the truth about Olympic spending.

Every time the costs go up, every time we see the Premier and the Finance Minister continue to stand up and say that the total cost of the Olympics is $600 million, public confidence is further eroded. When I hear the members of government say over and over again that $175 million is enough for security”¦. People know in this province how laughable that is. When the Auditor General says the B.C. Liberals aren't giving him the information he needs to investigate the real costs of the Olympics, the taxpayers that I talk to are asking: "What do the B.C. Liberals have to hide? What is this government trying to keep away from us? What are they trying to hide?"

Now Mr. Speaker, just yesterday the Premier appeared on national television, and he told Canadians that it simply wasn't true that the Olympics were overbudget. In fact, he spoke directly to the issue that we're here debating today in Bill 47. He said on national TV that the Olympic village itself wasn't over budget, and I'd like to quote the Premier. Here's what he said on CBC TV: "Number one, there aren't cost overruns in the Olympic village. What there are, are some challenges in terms of one of the opportunities to finance it. There aren't cost overruns."

Well, that's what happens when you don't come clean. You can't keep your stories straight. That's exactly what happened yesterday, and later the Premier had to apologize. He said that what he meant to say was that the Olympic Games, in total, weren't over budget. Now, who can believe that? Tell that to the Auditor General, who said the costs are now in the billions. Tell that to the taxpayers, who know that they're covering the $400 million in convention centre cost overruns. Tell that to the taxpayers in Vancouver who are going to pay in the end for the Olympic village with this piece of legislation passed.

It would be funny if it wasn't so serious. We know the Premier has been twisting and turning on Olympic costs for months. He owes more than an apology to the taxpayers of this province. It is time for some straight talk, for the Premier to cut the nonsense and come clean with the real costs on the Olympics for the taxpayers of this province.

Earlier this week I was in Kamloops. Yesterday I spent time in Ladysmith and in Cowichan. In each of those opportunities I met with seniors and their families. I heard story after story about the lack of quality seniors care. I heard anger in those people's voices. I heard despair from families who have seen broken promise after broken promise from this government.

I heard people ask how the Premier can find additional dollars for cost overruns in the Olympics, the issue that we're talking about today, and yet can't find enough money to make sure that their relative gets good quality care or their child gets a good quality school in their neighbourhood. I'm sorry, but this Premier has his priorities wrong, and the public knows that in British Columbia.

That's what this debate on Bill 47 is about. It's about the true costs of the Olympic Games. It's about the Liberals finally coming clean with those costs. It's about helping the city of Vancouver cope with a financial mess that's been left to it by the Premier's friends at city hall. It's about protecting the taxpayers in Kamloops and in Cowichan and in Vancouver. It's important that we remember that as we go through this debate. This isn't about the Premier's project; this is about liability to the taxpayers of British Columbia. It's also about learning the lessons to protect British Columbians from more surprises.

Now, we all know that the B.C. Liberals want to duck debate here in this chamber. That's very clear. But they can't cut and run from the voters. The day isn't far away where their record is going to be judged, and they're going to be held accountable. Olympic cost overruns are a concern for every British Columbian. They're a powerful symbol of this government's arrogance and neglect.

So I put this challenge to the Premier again. Let's not walk away from this debate on Bill 47. Let's not walk away from this House and pretend as though we fixed the problem, because we haven't. We haven't fixed this problem until the Premier acknowledges the truth, until he acknowledges the real cost of the Olympic Games, until the Premier comes clean and takes steps to protect the taxpayers. Until the Premier does that, his government has profoundly failed the people of B.C. and jeopardized the success of the Olympic Games.

Mr. Speaker, we will get into discussion on Bill 47. We'll have the opportunity to talk about the specifics as we move along in the debate. But let's not forget that the reason we are here today is because of a government that refuses to tell British Columbians the real cost of the Olympic Games and continues to try and hide those costs. Thank you very much.

Hon. C. Hansen: So there is a provision in the agreements between the province and the city of Vancouver for the province to indemnify the city of Vancouver in certain situations, and what the member failed to read out when he was quoting from those agreements is that the only way that that indemnity can be exercised or operationalized is if there has been specific written instruction from the province of British Columbia agreeing to an action by the city of Vancouver.

In the case of the athletes village, there has been no such undertaking, and the city of Vancouver, quite frankly, is accepting their financial responsibilities. The mayor has said very clearly that he is not looking to the province or the federal government for any kind of a bailout or any kind of financial assistance. What he's looking for is to give the city the power for which they can actually live up to their obligations and their responsibility and to do so in a way that minimizes or perhaps even avoids any detrimental financial impact on the taxpayers in the city of Vancouver.

When I hear members of the opposition talking about the taxpayers and the city of Vancouver being faced with costs in the hundreds of millions — or somebody said $875 million — that is absolutely an exaggeration, because what the objective of the city of Vancouver is, is to make sure that there is no financial cost to the taxpayers of the city of Vancouver as a result of this project. It is by us passing this legislation today and giving the city the powers that they have requested that we are going to do our part in assisting the city of Vancouver in minimizing those risks.

The other thing that the member from Surrey-Whalley talked about was the "guarantee" that the province has given for the costs of the Olympic Games. Again, I think the member has to be really careful to make sure that he is providing the proper interpretation to that guarantee. The province of British Columbia is not on the hook for any financial costs or deficits that might result from the Olympic and Paralympic Games. What the province of British Columbia has agreed to is to guarantee that the IOC would not have to take responsibility for any costs. But that doesn't mean that the province automatically picks up any of those costs.

So it is very specific, the guarantee. It is very limited in its scope, and again, I think it's important that members of the opposition”¦. Certainly, I think if any of them sat through the estimates debate that we had last year on Olympics or any of them should go back and reread it”¦. I would actually recommend that the critic who was there for all of those estimate debates should go back and read the exchanges that took place during the estimates debate, because it's clear from some of his remarks today that either he had forgotten the explanation to some of these aspects or perhaps wasn't listening at the time.

So when you look at the costs with the Olympic village, for example, it is part of a construction cost. That's the $30 million that flowed from the federal government and the province — $30 million to VANOC, which in turn flowed to the city to provide for a portion of the cost of the Olympic village. That's the obligation that is there from VANOC.

Now, if we were not to pass this legislation, if we were not to give the city of Vancouver the tools it needs to deliver on the athletes village, then potentially and hypothetically, there may be obligations that VANOC would have to pick up. But the operating budget of the Olympics today, the operating budget of VANOC today, is on budget and is on target.

So when the members scoff at the claim that the Olympics are on budget and not going into overruns, look at the operating budget. It's about $1.7 billion. Where does it come from? It comes from ticket sales, which have been hugely oversubscribed. It comes from the international broadcast revenues, which are in the bank, and they have those. And it comes from the national sponsorships that VANOC has lined up.

Even this last week there are lots of people trying to find vulnerabilities there. Last week we found that with the Nortel commitment, it's there, and it's there to support that operating budget. So things are very much on target and the makings of a big success story.

So what comes out of this at the end of the day is a huge economic opportunity for British Columbia, a huge net benefit for British Columbia, a huge success in the making — $4 billion worth of direct economic activity directly as a result of the games. The economists are telling us that, yes, 2009 is going to be a rough year, but they also tell us that British Columbia is going to lead all of Canada in economic recovery in 2010, and it's because of the fact that we are hosting the 2010 Olympic and Paralympic Games.

We're going to see 250,000 visitors come to this province to witness the games. We're going to have 7,000 athletes, many of them who are going to be housed at this Olympic village, who are going to be coming to show their skills to the world. We're going to have 10,000 media, I think, who are going to be mesmerized by this Olympic village and the innovation that's built into it, as they will with all of the other venues and with the natural beauty that you will be able to see around British Columbia at that time.

We will have 10 billion television viewers around the world who will watch these winter games unfold. What those 10,000 viewers are going to see is a phenomenal Olympic village, a phenomenal testimony to the skills and talent and innovation of British Columbians and British Columbia construction workers. They're going to see one of the greenest projects, and it's going to become a model for other developments around the world.

They're going to see a province that is resilient. They're going to see a province that has come through the economic challenges of 2008-2009, a province that is ready to excel in economic recovery in the world, a province that is ready to lead Canada. It is because of the Olympic Games that we're going to be able to demonstrate to the world that this is a great place to visit, and it's a great place to live.

Many of those people will probably wish they could come to Vancouver and buy one of those units in the Olympic village so that they too can build their futures in this province and benefit from the phenomenal future that this province is going to see in years to come.