While Canadians escape to their cottages, they can rest easy knowing that their federal government is still working hard to give hard-earned tax dollars to some of Canada's most "poverty stricken" corporations.

A quick scan of the Industry Canada website reveals that the Government of Canada relishes its role as venture capitalist with taxpayer dollars. Just look at the last four weeks as an example.

June 14, 1999: At an air show in Paris, France, Transport Minister David Collenette provides a Technology Partnerships Canada (TPC) "conditionally repayable contribution" for $3,663,895 to AlliedSignal Aerospatiale Canada for components for the company's family of turbofan engines.

The government press release says the investment will "create or maintain 91 jobs in the Montreal area." That's $40,262.58 per job. AlliedSignal has received over $100 million in assistance from the Canadian government in the last 20 years. The company is ranked as Canada's 94th top private company by Report on Business Magazine (ROBM) with annual revenues in excess of $685 million and profits of $90.8 million.

June 22, 1999: Industry Minister John Manley announces a $154 million TPC "conditionally repayable contribution" to aerospace giant Pratt &Whitney for engine development technology.

The news release claims the money will "create or maintain 770 jobs." That's $200,000 per job. Pratt & Whitney has received over $1 billion, not million, but billion, in financial assistance from the Canadian government in the last 20 years. The company is ranked as Canada's 45th top private company by ROBM with annual revenues of $1.8 billion and undisclosed profits.

June 29, 1999: Montreal area MP Sheila Finestone announces a $147,608 TPC "conditionally repayable contribution" to local company Air Data Inc. to assist in the development of a breakthrough data communications system.

July 6, 1999: Minister Manley announces a $33 million TPC "conditionally repayable contribution" for Markham-based IBM Canada Ltd. for development of e-commerce technologies. For the record, IBM Canada is ranked as the 6th top private company by ROBM with annual revenues of a paltry $8.7 billion and undisclosed profits.

I think you get the picture by now. The feds are doling out money to create jobs and no doubt this scene will be repeated across the country throughout the summer. Make the announcement, do the news conference, cut the ribbon, move on to the next town.

Is this a wise use of taxpayer dollars No! Consider the following. No one can verify these job creation numbers and since the feds are so deeply into subsidizing our aerospace industry, you can bet that double and triple counting of spin-off jobs regularly occurs.

Access to Information reveals that of the $3.2 billion lent out by Industry Canada from 1982 to 1997, only 15% has been repaid. And $2.5 billion of this $3.2 billion was lent out under "conditionally repayable contribution" terms. Only 4.87% or $125 million had been repaid as of 1997.

The recipient is obliged to repay the contribution amount ONLY if the conditions -- usually very rosy sales targets - are met. The Auditor General has said as much. And Consulting and Audit Canada has also commented that government officials need to guard against companies claiming "generic status" (ie: we're using the money for something else) so that they may circumvent repayment obligations.

Watch out, the Industry Canada corporate welfare bandwagon may be coming to your town soon.