-- CTF releases Volume Two of Corporate Welfare: A Nightmare on Queen Street --
- Government documents reveal funding recipients not paying back their loans
- Government documents reveal Bombardier Inc. particulars
- CTF reveals corporate inter-relationships between top funding recipients
- CTF reveals grants and contributions to major companies and a $2 million authorized conditionally repayable contribution to the Royal Bank of Canada
OTTAWA: The Canadian Taxpayers Federation (CTF) today released the second volume of its ongoing investigation into 16 years of Industry Canada financial assistance to business. Released at an Ottawa news conference, the study -
Corporate Welfare Volume Two: A Nightmare on Queen Street - includes a 1996 Consulting and Audit Canada (CAC) report completed for the Department of Industry which paints a disastrous picture of repayment behaviour by major funding recipients (in excess of $10 million).
"The CAC study supports our claim that the billions owed to the Department by some of Canada's largest and most successful companies will probably never be repaid," stated CTF federal director, Walter Robinson. "The auditors consistently used words like uncooperative, negligent and evasive to describe the repayment behaviour of some of these companies, these are serious charges that need to be investigated."
The CTF has written the Auditor General to request an investigation into two of Industry Canada's largest business assistance programs, the now defunct Defence Industry Productivity Program (DIPP) and Technology Partnerships Canada (TPC).
The CTF also demanded an immediate shut down of TPC and similar venture capital loan programs in a three-page letter to Industry Minister John Manley. The CTF also demanded that the Minister launch an internal departmental investigation and report the results to Parliament and to make public the forecast repayment schedules for over $2.4 billion that is still owed under DIPP funding agreements.
Robinson stated "The CAC study also revealed that Bombardier Inc. has repaid just 5% of the money it owes to Industry Canada on 21 separate projects. In addition, the study states that there is no evidence on files to indicates that the Department is following up to ensure information on sales is received."
"Not only does the CAC study reveal corporate non-compliance, it also reveals poor management of taxpayer dollars by Industry Canada (IC). The auditor's note IC's confusion on actual amounts owing, signing off on unverified claim payments to companies and instances of overclaims by companies which can take years to correct."
Volume Two of the Corporate Welfare study also includes an examination of the corporate inter-relationships between the top 25 corporate recipients of Industry Canada funding identified in Volume One. "It's interesting to highlight the corporate family and producer-supplier relationships that exist among the elite recipients of corporate welfare" stressed Robinson.
Also included in
Volume Two are pages of grants and contributions to some of Canada's largest companies, chambers of commerce and not-for-profit organizations.
"What is most puzzling to us is the authorization of a $2 million conditionally repayable contribution to the Royal Bank of Canada," added Robinson. "It seems that we have a department that is out of control and spending tax dollars like monopoly money."
"Our message to Minister Manley is clear. It's time to reign in your department and put an immediate end to shooting craps with taxpayers money. Corporate welfare must end NOW!" concluded Robinson.