This week, Premier Dalton McGuinty made new automotive investment in the province a "priority" for his government. That's bad news for taxpayers.

The government's newly-announced Ontario Automotive Investment Strategy is the latest jalopy to roll off the corporate welfare assembly line. Responding to a challenge from auto industry executives, Minister of Economic Development and Trade Joseph Cordiano chastised the previous government for not doing enough to attract new car plants to the province. He then handed auto makers half a billion dollars in taxpayers' money to "partner with industry for advanced-skills training for our workers…and investments in research and innovation". Translation: taxpayers will pay private-sector multinationals to do what they're doing anyway: make profits for their shareholders and CEOs.

Ontarians should be alarmed by yesterday's announcement, as it may spell more government largesse to come. Federal Parliamentary Secretary Joe Fontana has hinted that Ottawa may design its own automotive strategy. To date, Industry Canada's flagship corporate welfare program, Technology Partnerships Canada, has already given out $58 million in auto sector subsidies. And with the federal government revving its engines for the next election, it won't be surprising to see it dole out more cash.

It's nothing new to have a freshly-minted minister looking for an opportunity to cut a ribbon at a shiny new auto plant. But unfortunately for taxpayers, this approach to economic development hits them right in the pocketbook. Since 1999, the CTF has chronicled more than $52 billion (yes that's a "b") in federal corporate welfare - equivalent to $240 taken from every Canadian taxpayer. And there's no proof that those dollars have generated more return on investment than if they had been left in taxpayers' pockets to spend and invest as they - not the government - chose.

Over the past two years, automobile and automobile parts manufacturers have been ratcheting up the pressure on governments for subsidies and other corporate welfare schemes. The big three and other auto makers point to generous government concessions in places like Mexico and the Southern United States.

So what would help our country attract a bigger piece of the auto industry pie without picking taxpayers' pockets For a start, lower taxes and less regulation. Instead, Premier McGuinty chose to cancel corporate tax reductions, which would have made Ontario a more attractive place to invest. For its part, Ottawa ratified and began implementing the Kyoto Protocol on climate change. The federal government's Kyoto plan calls for a 25% improvement in automobile emissions of greenhouse gases - sure to drive up car prices, and drive down investment, once new auto emission targets are announced.

These two actions alone make Canada a less-than-friendly business environment for the auto industry. And now for Ontario taxpayers, this means even less money in their pocket: $500 million less, money which could have gone to personal income tax cuts, health care, or deficit reduction. (How the provincial government plans to ever balance the books when it keeps spending like this is anybody's guess.)

Sorry Premier, but subsidies aren't the answer to growing the Ontario auto industry. This government should put the brakes on corporate welfare - and put taxpayers back in the driver's seat where they belong.