Letters of Support for $32 Million Federal Loan to Buhler Backfire on Manitoba NDP

WINNIPEG: The Canadian Taxpayers Federation calls on Premier Gary Doer and MaryAnn Mihychuk (Minister of Industry, Trade and Mines) to come clean on their role to support an interest-free $32 million Western Economic Diversification (WED) loan to the Americanization of a Manitoba farm manufacturer.

Thanks to interventions by the Manitoba NDP and other Manitoba federal politicians, WED awarded Buhler Versatile a $32 million loan to buyout a company worth only $28.5 million. Now Buhler is determined to take the money and run and set up operations in North Dakota.

Yesterday's federal Hansard reports Brian Tobin (Federal Minister of Industry) referring to letters sent form the Manitoba Premier and the Ministry of Industry "asking the national government to approve this transfer (loan to Buhler) without delay." Tobin later goes on to say that the loan was awarded at the request of the Manitoba NDP.

"Inadvertently, the NDP helped Americanize a Manitoba farm manufacturer," said Victor Vrsnik, provincial director. Without the $32 million WED grant, Buhler may not have been in a position to reopen operations across the border.

"The Manitoba NDP should have stuck to its pre-election promise to trim down business subsidies instead of meddling in yet another doomed corporate welfare program," added Vrsnik. "The debacle of the Buhler handout is a perfect illustration of why government should get out of the business of bailing out failed industry in Canada."