Ottawa, Ontario, Canada (AHN) – Ottawa rejected Tuesday a request by Edmonton to help finance the city’s bid to host the 2016 World Fair to celebrate Canada’s 150th founding day.

Federal Finance Minister Jim Flaherty explained Ottawa is going through a tough time with a record-high budget deficit, so the government could not afford to fund the project. Flaherty added it is not only Edmonton’s request that Ottawa had turned down, but also hinted the government would also say no to Quebec City’s request for assistance to build a hockey arena.

Flaherty added that the rejection is part of Ottawa’s policy not to commit to spending that would lead to larger deficits and higher taxes.

Aside from the huge budget deficit, Edmonton MP and cabinet minister Rona Ambrose pointed out the possible skyrocketing of security costs was a main reason why Ottawa said no.

The decision disheartened and angered Edmonton Mayor Stephen Mandel who lobbied hard for Ottawa’s financial support. Mandel said the decision appears that fiscal responsibility of Ottawa applies only to western Canada.

Edmonton sought a $706 million federal share for the expo, which is expected to cost $2.3 billion. Federal Heritage Minister James Moore said Ottawa is not prepared at this point to take such a huge financial risk in anticipation of federal share eventually ballooning to more than $1 billion.

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