By Mia Rabson

OPPOSITION MLAs yesterday demanded the government seek an independent review to find out why Seven Oaks School Division was given permission for an "illegal land development scheme" in northeast Winnipeg.

Canadian Taxpayers Federation Manitoba Director Adrienne Batra said Seven Oaks School Division should have its 2005 property tax increase repealed since it obviously doesn't need the money.

Education Minister Peter Bjornson has asked his department to review the matter and report back to him by June 2, but Tory education critic Myrna Driedger said that is akin to the department investigating itself.

Driedger wants the provincial auditor to get involved to ensure everything, including the minister's actions, are reviewed and accounted for.

Liberal MLA Kevin Lamoureux supported that idea.

"Will the member admit there is a need for an independent review, and not some sort of a cover up by this minister of education," Lamoureux said during question period.

The development in question is Swinford Park, about 100 residential lots between Murray and Woodbine avenues in Riverbend. The division spent $2 million to develop at least 70 of the lots between 2002 and 2005, and claims to have made a $719,000 profit. It still owns about four hectares in the development on which it plans to build an elementary school.

According to the Public Schools Act, school divisions can develop land only for new schools, school expansions, or educational farms or gardens.

Bjornson says all the questions related to the issue will be answered by the departmental review. Yesterday, he released the terms of reference of that review, including whether the division broke the law, and what review the Public Schools Finance Board did when it gave the division permission to develop the land.

It includes no mention of looking at whether the department of education or Bjornson himself bear any responsibility.

Questions remain why Bjornson didn't do anything about the problem a year ago, when a private citizen brought it to his attention in an e-mail. Bjornson says he was never told the allegations made in the e-mail were accurate and therefore he never acted on them. He admits now he should have done more.

Driedger also wants to know exactly how much money the division made. Superintendent Brian O'Leary told the Free Press last week estimated profits are $719,000 but that isn't cash in hand.

"This isn't money in the bank, it sits in equity in a 10 acre school site," O'Leary said.

Seven Oaks increased local school taxes 2.65 per cent this year, amounting to about $34.84 more on a $100,000 home.

Batra said if they had so much money lying around for development, and made the $719,000 profit claimed thus far, the division shouldn't have to increase taxes at all.

Batra also said Bjornson should lose his seat at the cabinet table over the snafu.

"This minister is clearly incapable of handling his file," Batra said. "We are paying for his incompetence."

mia.rabson@freepress.mb.ca