Yukon MP Brendan Hanley says he was surprised by the territorial government’s sudden withdrawal of its support from the 2027 Canada Winter Games bid.

He also said the bid committee’s requests for scores of millions of dollars for new infrastructure would have had to be directed to other federal programs.

The Yukon government said Monday it would have had to kick in $160 million to host the Games. The total budget for the Games is approximately $185 million.

“The federal government is there and has been there for years,” Hanley told the Star Tuesday.

“If we think about it, all of the, say, affordable housing initiatives recently, the money through CMHC to Whitehorse and Rapid Housing to Watson Lake, Rapid Housing to the High Country Inn renovation and affordable housing in Dawson City.

“If we look at the transfer payment that occurs this year, estimated to be $1.2 billion, an increase in $60 million from last year, you know, there’s lots going on,” Hanley said.

“So I think it’s a little unfair to paint this as a sort of derogation of duty from the federal government.”

The federal government was “highly engaged” in the Games conversation, he added. “This (Mostyn’s bombshell announcement) came as something of a surprise.”

Hanley said he had contact with several federal ministers and Prime Minister Justin Trudeau about the Games bid.

“The departments were working official-to-official looking to find direct and indirect funding supports.

“If I’m interpreting this right, I think what the Yukon government was asking for was certainty. Like, basically a cheque for $130 million, which is just not possible to produce on that kind of notice when it’s not even in the budget cycle,” Hanley pointed out.

“Through Sport Canada, the funding for support for the Games, $16.75 million, the maximum was committed, the rest were infrastructure questions … all of the federal possible supports for infrastructure have already been tapped out by Yukon government.

“So it’s looking at, ‘OK, what else can we look at? How can we work together on the possibilities? What are the new funding programs that might come online? You know, let’s take a look at this,’” the MP said.

“So maybe the cheque wasn’t there, to be fair on the federal government, but you know, the commitment to work to find a solution was certainly there.”

The Games would have left Whitehorse with $65 million worth of affordable housing. Hanley was asked if he would lobby his government to come up with that funding, even if no Games occur here.

“Housing is probably the single-biggest priority for the government in terms of for Yukoners,” he replied. “I hear that from the mayor, I hear that from all the First Nations … from the communities.

“I just had a call … directly from ministers who said to say that Whitehorse is included in the upcoming round of the Rapid Housing initiative, one of 41 cities around the country.

“So again, we’re there; we recognize the priority.”

The exact amount available through the various funding sources is difficult to say, Hanley added.

“I’m sure it could quite easily meet the number that you suggest when we put all those commitments and sources together.”

Hanley was asked if he believes the bid’s collapse has seriously damaged his government’s relations with its Yukon counterpart.

“I think we have a great relationship,” Hanley responded. “We have ongoing direct relationships through all sorts of levels.

“I serve in that kind of liaison relationship connecting directly with federal ministers when priority items or issues come up … the cabinet ministers here certainly have a direct line to several ministers.

“On this particular issue of Yukon government needing certainty on infrastructure to support that model for the Games, it’s a little bit of, I would say looking at this same situation from different points of view.

“… I’m kind of surprised by how rapidly the Yukon government came to that decision to pull from the bid but they have to make their decision for their own reasons.”

Will he lobby his government to reconsider its position and sweeten the pot?

“The federal government did not take a position (Monday),” the MP noted. “It was the Yukon government that made a decision, and that will be up to them to reconsider whether they want to reconsider or whether they put this away ….

“I know that the federal government is there to help and to help figure things out should that request come back but meanwhile, we’ll continue to collaborate on any of the other priorities that Yukon has identified and that Yukoners have identified.”

That pledge includes progress on energy infrastructure, including the Atlin hydro project, which needs at least $60 million in additional funding to feed power into the Yukon, housing, health care, including that territorial health investment fund and Indigenous reconciliation, he said.

Hanley wouldn’t say if he believes the federal government’s funding offer for the Games was insufficient, or if it’s unrealistic to believe the territory could or should shoulder the rest of the cost burden.

“Do you know what Niagara (Ont.) received for running the Summer Games? $12 million,” he related.

The Yukon’s requests above the $16.75 million limit available for the Games “are legacy infrastructure requests; you know, a new arena … we’re all for, I’m all for a new venue for a new multi-1,000-seat venue,” Hanley said. “That would be fantastic. Is it essential to host the Games to have that structure?

“So it’s almost like they’re two separate but related issues. One is, is there enough interest from the city and from the Yukon government to run the Games?

“Or is this about infrastructure?

And if it’s about infrastructure, then let’s look at what the infrastructure priorities are for both the city and the territory and work together on how the federal government can support that through budgetary investments.”

Was the bid committee unrealistic to ask for so much money from the federal government?

“I’m struggling,” the MP responded. “I guess where I struggled is: is it realistic to ask for that money up front?

“Like I have referred to at the beginning, basically a cheque for somewhere like $130, $140 million when you know, that would be at the very least a line item in the budget, in the federal budget, where we haven’t even gotten to the budget priorities and requests yet.”

Whether additional federal-territorial conversations would have resulted in the full funding, or alternative scenarios for running the Games, or both, “who’s to say?” Hanley asked.

“I think we would have arrived at some kind of solution that would have resulted in both enhanced infrastructure and running of the Games but what the final scenario would be, I don’t know. That’s what the conversation was about.

“ ... I’m sure there will be many ongoing conversations.

“Again, I think it was pretty clear that a decision had been made (Monday).”

The federal government is beginning to set its next budget’s priorities, he pointed out.

“I know that the premier and (federal) Finance minster have been in touch over establishing overall priorities.

“With the budget, we know that the health transfer topic is a very active discussion, as you know right now, so if you mean specifically around the Games, I’d say we’re probably at a bit of a pause,” the MP said.

“I don’t think it’s up to the feds to come back to YG. Maybe we need to move on.

“I feel and I know that the federal government is ready to continue to work together to collaborate on this or any other priority.”

Hanley was asked if Yukoners should be concerned that this week’s drama has set a template for Ottawa reducing its investments in other aspects of northern development – a concern expressed by the territory’s Yukon Party and NDP.

“I was surprised to see that coming up,” Hanley admitted. “Again, the federal government was there and ready to work this out.

“ .... And you know, really, the federal government is there to assist the Yukon Territory … we really are partners, and I think that the investments have been generous, getting increasingly generous, you know, every year, but we have to have these conversations. The overall priorities need to be established.”

In the face of many serious challenges, Hanley said, “let’s figure out mutually, you know, where to put the money towards which priorities, and that is definitely an ongoing conversation.”