(A complete article published originally in the WFP, July '67)
The provincial government will re-open negotiations with Ottawa on cost-sharing for the Pan-American Games in an effort to have the senior government absorb a larger share of the financing.
In a statement Tuesday, Provincial Treasurer Gurney Evans said the reason for the move was that the financial picture for the games - scheduled to open in less than two weeks on July 23 - had altered materially.
It is expected up to an additional $1 million may be required. Most of this is accounted for by a $740,000 shortfall in anticipated television revenues, Mr. Evans said.
The City of Winnipeg, on behalf of the Pan-American Games 1967 Society, approached the province several weeks ago seeking an additional $968,500. This, the society said, was required for what were termed "non-essential items to give a polished touch to the games facilities."
Mr. Evans met Monday with Pan-Am chairman W. Culver Riley and Morris Neaman, chairman of the society's finance committee.
Financing of the games had been fully discussed and the province continued to be satisfied with organization of the games Mr. Evans said.
The decision to re-apply to Ottawa for new arrangements was the result of the original close-end agreement that did not take into account the type of shortfall in anticipated revenues that is now showing.
Under the original agreement, the federal government undertook to pay five-elevenths of the first $2,710,000. The province undertook to pay four-elevenths and the city the remaining two-elevenths.
The next $750,000 was to be shared equally three ways and any other residual costs were to be shared 50-50 between the province and the city. In addition, the province and Ottawa undertook to roof the Pan-Am pool on a 50-50 basis at a cost of $1.5 million.
At present, Ottawa has contributed $2,122,000, the province $1,873,000 and the city's share has amounted to $583,000. Other Greater Winnipeg municipalities - principally St. James - have provided a smaller amount of just over $40,000.
Mr. Evans stressed that the province would meet it obligations to the society for the formally-agreed share of net costs. This seemed to indicate the province would share the additional costs on a 50-50 basis with the city.
However, it was understood the province would now like the additional costs to be shared on the five-elevenths, four-elevenths and two-elevenths basis, or alternatively that the additional costs be split three ways.
Mr. Evans said in addition to the anticipated reduction in television revenues a list of additional items for the Pan-Am Games was drawn up at the city’s request several months ago.
"The essential items on this list were taken into the society's budget; those omitted were not required for the direct purposes of the games."