While Moncton won't receive revenue from operation, it will enjoy economic spinoffs

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By Mary Moszynski
Times & Transcript Staff

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FREDERICTON - Metro Moncton will reap the financial rewards of having a casino and entertainment complex built in the community, benefits other communities would love to receive, says Finance Minister Victor Boudreau.

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Boudreau

Boudreau said the casino, which is expected to generate roughly $1.5 million in property tax for the city, will create numerous jobs and economic spinoffs.

"The city is obviously going to get the economic spin-offs that come with a $90-million private sector investment in a municipality," he said. "There's close to 700 or 800 jobs during the construction, there's over 400 jobs during the operations. Hopefully some of these people will be buying homes and cars and things of the like, which is going to benefit the local economy."

Earlier this week, several city councillors suggested the provincial government should give a slice of the casino revenue to the city to cover so-called additional social costs.

Under the agreement with the province, Sonco Gaming New Brunswick will keep 50 per cent of the profits, 43 per cent will go to the province and three per cent will be put into a fund for future improvements to the facility.

The money flowing to government will go into general coffers, meaning it will be spent on projects across the province, including Moncton, said Boudreau.

"I could tell you that there are other municipalities that would certainly like to get a $90-million private sector investment," he said. "I'm positive the greater Moncton area is going to benefit from this project."

Boudreau also pointed out the casino provides Moncton with a convention centre/entertainment complex without any government funding.

Those calling on the province to share its portion with the city say a casino will lead to increased policing costs.

However, in neighbouring Halifax, a team of additional officers hired to deal with the expected surge in crime when a casino opened there was quickly disbanded because the crime rate didn't increase.

In fact, a York University study of RCMP-investigated money laundering cases suggests that if the province is thinking about adding plain-clothes officers to curb money laundering, they should be posted in banks, where the majority of laundering activities take place in Canada.

Boudreau said the city won't receive a share of the revenue -- just like it doesn't receive a share of the profit from any other business.

"These companies don't give a percentage of their profits to the municipality and I don't see why a casino development should be any different."

Moncton Mayor George LeBlanc said the city is still working out what additional costs might be incurred by the municipality.

"We're not trying to hit the jackpot here, so to speak, but if there was a good argument for sharing the revenue we certainly wouldn't be opposed to that," he said.

LeBlanc said there could be costs related to policing or roadwork, although he said council wants to do the math before speaking with Boudreau.

"I would hope this thing would be a benefit financially for the city so we don't have to worry about breaking even, that we're coming out a little bit ahead."