Quebec Mayor Labeaume was right!
Posted 4:53 PM ET | Comments 1
There has been alot of people complaining about the fact that Quebec City's new arena would be built using mainly public money.
When we take a look at the situation it is easy to end up with this conclusion, but there is more to it than what it looks like at first.
What Mayor Labeaume has been saying from the start is that it's not realistic to expect a company to build a new arena, as it has been the case in bigger markets like Montreal, Toronto and Vancouver.
Well today, the Conference Board of Canada published a report basically saying that Labeaume was right.
"In an ideal world, said Glen Hodgson, VP and chief economist, professional sports franchises and the stadiums where they play should be funded by private investments. But in Canada, it is the case only in the 3 bigger cities that have an NHL team."
The report also mentions that elsewhere in Canada, the size of the markets and their capacity to hold a sufficient amount of events is problematic for private investments.
Using public money does not make much sense economically speaking. However, these buildings can raise the quality of life of the communities nearby the equipment.
Going on a case by case basis, the use of public money could be justified, as such a project brings new jobs and increases the tourism offer for those smaller agglomerations.
It's funny to read such a report, because it fits perfectly with the situation in Quebec. Even though the arena would be built from public funds, it is totally justified because half the province in Quebec does not have access to a modern arena.
It also makes more sense for Municipal and Provincial governments to invest in those projects because they will be the ones who will benefit from it.
Knowing this, its also understandable that Canada's federal government decided to not participate directly in Quebec's amphitheater.
No.