REGINA: The Canadian Taxpayer's Federation (CTF) is calling for an immediate end to direct government investment in private business in light of the government's loss of $6 million due to the bankruptcy of Mind's Eye Pictures.

"The bankruptcy of Mind's Eye Pictures is just the latest example clearly illustrating why government investment in private business is bad policy," said CTF Saskatchewan Director David MacLean. "If it's in the yellow pages, the government should keep their noses and our tax dollars out."

CTF calls for moratorium on government investments, review of current investments

"The government should implement an immediate moratorium on investments in private businesses, both through the provincial government and the commercial crowns," said MacLean. "We need a full review of the government's current investments here in Canada and around the world to expose the degree to which tax dollars are currently at risk."

Despite the bankruptcy, the province says they will continue with a planned investment of an additional $675 thousand in Mind's Eye Pictures.

The loss on Mind's Eye Pictures is the latest in a long line of failed government investments. Tens of millions of dollars were also lost on forays into the bingo business and the french fry industry.

"This loss clearly calls in to question the validity of a number of more recent government investments," added MacLean. "In the last month the government has invested $4.75 million in call centers in Regina and Saskatoon, in a steady intrusion into the Saskatchewan economy."

"It's not the role of government to prop up failing businesses," said MacLean. "This kind of political patronage and corporate welfare must be stopped before more tax dollars are wasted."

"Mind's Eye Pictures has played the taxpayer like a fiddle," said MacLean. "When they received a taxpayer-funded Christmas gift of $2 million not even six months ago, Mind's Eye CEO promised the investment would be profitable. Shame on the government for being suckered in to this mess."