WINNIPEG – The federal government will assist in establishing a marketing agency to promote and revitalize the port of Churchill.
Western economic diversification minister Lloyd Axworthy said last week that funding for the proposed Gateway North agency will come from his department, although the amount wasn’t yet known. And he is looking for someone to head the agency.
A task force on Churchill’s future recommended in January that the government spend $27 million in the next two years on rail line and port upgrading, and get Gateway North off the ground. The task force also recommended $235 million be spent over time on major improvements to the line and port.
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Transition fund used
Last week there were reports that the initial $27 million will come from a transition fund of $300 million that may be established to help farmers adjust to the loss of the Crow Benefit.
But Axworthy said reports were “mere speculation.” No numbers have been set, and no money from the transition fund has been committed. He said he and agriculture minister Ralph Goodale agree money for the project could come from the fund, and a decision will be made in coming months.
“With the WGTA being phased out, there’s going to be a need for new transportation outlets, and I think Churchill really meets some of the criteria,” Axworthy said.
But he added it’s too early to be optimistic about the $235 million needed in the long term. The government would look at the project “one step at a time,” with Gateway North being the first step, he said.
In Churchill, mayor Doug Webber said he was happy to hear reports of funding for the project. Without funding for the rail line, a private-sector aerospace project in the town will not go ahead, he said. The project is expected to bring jobs to Churchill and millions in tax revenue to the province.
Webber said the government would be making a sound business decision if it committed money to upgrading the port and line. “All you’ve got to do is take a look at the tax benefits that are going to be derived from having the spaceport here.”
Some farmers weren’t keen to hear reports that funding for the line may come from post-Crow adjustment funds.
“If (the line) is going to be used to develop that particular region, then these funds should come from general coffers, rather than from the change in the Crow Benefit,” said Larry Maguire, president of the Western Canadian Wheat Growers. “That $300 million will only go so far.”
