NO DEAL YET ON GAMING FOUNDATION SURPLUS

by James Keller

The provincial government still hasn't ironed out an agreement with the Nova Scotia Gaming Foundation over what to do with the foundation's multimillion-dollar surplus, but the province says a deal is almost complete.

The foundation, established in 1998 to fund groups dealing with gambling addiction and research, is sitting on a $4-million surplus.

Last year, the auditor general recommended the province and the foundation draft a "memorandum of agreement" to prevent future surpluses by ensuring money reaches addiction programs.

Foundation officials are talking with Rodney MacDonald, the minister responsible for health promotion and therefore for the foundation, to finish the memorandum. In November, Mr. MacDonald said he would announce an agreement by the end of that month.

"I don't think there have been delays that are out of the ordinary," said Susan MacLeod, a spokeswoman for the Office of Health Promotion. "It has been a very smooth process, and this is just how long it took."

An agreement should be ready in the next couple of weeks, Ms. MacLeod said.

Liberal gaming critic Diana Whalen said she's waiting anxiously for an announcement. She's worried how the talks will affect the foundation's future.

"I'm just worried they might question the whole need for the gaming foundation," Ms. Whalen said.

Neither Ms. MacLeod nor Ray MacNeil, the acting executive director of the foundation, would discuss details of the agreement.

"Scrapping the foundation is not an option," Ms. MacLeod said. "The issue at hand is how to best use the surplus."

Ms. Whalen said such a large surplus means money hasn't been going to addiction-related programs the foundation should be funding.

But Ms. MacLeod said the new agreement should address Ms. Whalen's concerns.

"(The memorandum) will prevent a surplus from being accumulated again, so the money would be used to help fund initiatives," she said.