The public debt load at the Global Transportation Hub (GTH) has grown by $11 million since the 2017/18 budget projection. As of the third quarter update at the start of March, the GTH debt is $37.3 million. The original budget projection was $26 million.
Minister Responsible for the GTH Don Morgan attributed the growing debt to slower than anticipated land sales at the inland port.
Morgan defended the project, saying it is still under construction as servicing, such as the ongoing work on completing railways continues.
“As with any commercial project, the first of the land you sell goes to pay for the cost of the land, the cost of subdivision, the cost of servicing. So we know we’ve made some progress.”
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The GTH is being tasked with developing an “aggressive” marketing strategy to sell plots of land. Morgan says more than half of the land at the GTH is sold.
Opposition critic Cathy Sproule says land sale issues have plagued the GTH for some time.
Morgan explained that the GTH budget is set based on the recommendations of the GTH board of directors.
Sproule is in favour of the province not putting any more public dollars into the GTH, but Morgan said that they need to complete the GTH before any sale talks begin so they could potentially recover the cost.
“I think it’s too early to have that discussion. That discussion I’m sure will come at some point in time,” Morgan said.
“It’s a horrible spot, and a pickle they created themselves, and they have to figure out how to get out of that,” Sproule said.
Going forward, Morgan said the government will hold the GTH board of directors “feet to the fire” on trying to sell parcels of land
“Look at different projects that are there, look at the occupants on the land now, and find out who does business with those people and approach them to see if they are potentially users of the land as well,” Morgan said.
In an emailed statement, GTH communications and marketing director Kelly Brossart said the following:
“A slower industrial development market is impacting the Global Transportation Hub. This is not exclusive to the GTH, but prevalent across the prairie provinces. As a result, our anticipated land sale revenue has not been realized this fiscal year and we have been unable to reduce debt as originally budgeted.
Our business development and marketing efforts are very aggressive with ongoing discussions underway with dozens of qualified prospects.”
On the public inquiry front, called for by leadership candidates including now Deputy Premier Gord Wyant, Morgan says the province is still waiting on a decision from Manitoba prosecutions on whether or not charges will be filed in controversial GTH land deals.