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MPs outraged over F1 rescue plan

Last Updated: Friday, December 12, 2003 | 12:56 PM ET

It's been officially reinstated for the 2004 Formula One season, but the Canadian Grand Prix is still at the centre of a raging controversy.

Opposition MPs and angry taxpayer groups have renewed their criticism of the rescue plan to save the Canadian Grand Prix and called on the federal and Quebec governments to pull taxpayer funding for the race.

In November, both of those governments agreed to shell out $6 million as part of a $29 million deal to keep the Montreal race on the 2004 F1 schedule.

The future of the race was in jeopardy of being cancelled because of Canada's anti-tobacco legislation unless F1 teams with cigarette sponsorship were financially compensated.

Montreal organizers were also asked to pay additional fees to have an 18th race added to the 2004 schedule, as F1 has a deal for a maximum of 17 races each season.

However, opponents of the bailout argue that Friday's cancellation of the French Grand Prix, which was also under a tobacco advertising ban, means the 2004 schedule has been reduced back down to 17 races and the buyout should no longer be needed.

"If it was known [that France was on the way out], then the federal government and Quebec governments did not do their homework," Walter Robinson, the director of the Canadian Taxpayers' Federation, is quoted in Friday's Globe and Mail.

"This is exactly why the federal government should not be involved in the sponsorship and subsidy business or what we like to call corporate welfare."

Robinson added: "People don't pay their taxes so the government can play race cars and redirect their tax dollars to a global multibillion-dollar sport. The situation has changed and we should take the money back and take it back quickly."

Robinson isn't alone in his criticism of the F1 rescue plan.

"It reinforces what we had said earlier, that taxpayers should not have been involved in bailing out the race. The Grand Prix should have relied on private-sector funding," Canadian Alliance MP James Rajotte told the Globe.

Montreal race promoter Normand Legault said F1 boss Bernie Ecclestone will still get the promised funds.

"What we've done with Bernie [Ecclestone] is to buy back that tobacco clause, so he can no longer punish us for our tobacco legislation and that's not just for the next three years but also for the renewal of our contract."

Luce Asselin, a senior federal official who helped put the bailout deal together, defended the his government's involvement, arguing everything was done "in good faith" to save the race.

"Legault set up a financial plan and told us what was needed to make it happen."

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