Toronto: The Canadian Taxpayers Federation (CTF) reacted today to a New York Times report that the Ontario government is spending $2.5 million of taxpayers' money to bring a musical production of the Lord of the Rings to Toronto.

"Last year the province dropped $1 million to bring in Conan O'Brien, now they're spending $2.5 million to import Frodo. Where will this end " said Tasha Kheiriddin, CTF Ontario director.

"Premier McGuinty seems to be living in a Middle Earth fantasy. At a time when the province has a 1.6 billion-dollar deficit, when the average Ontarian is paying $300 - $600 more a year in taxes, and when thousands of Ontarians face long waits for medical care, he spends millions of dollars on singing hobbits " she added.

According to the Times, sales for the $23-million musical production, which will open next spring, are "respectable", but there is no guarantee that the production will repay investors. Eight of ten Broadway shows fail to earn back their money.

Unlike many arts grants, the money is being given to a for-profit production. "This is just the latest in a long line of corporate subsidies from Queen's Park," said Kheiriddin. "Over the past two years, the provincial government has given hundreds of millions of dollars in subsidies to car manufacturers, ethanol producers, and steelmakers. None of these 'investments' have produced any return: Ford is laying off hundreds of workers while Stelco may not have to repay 75% of its $100 million loan."

"What's next - will the premier 'invest' in a mini-series A fashion show A clothing line This government is certainly creative when it comes to spending taxpayers' money, but not when it comes to saving it. Unfortunately, there's no wizard like Gandalf to make Ontario's deficit go away. Premier McGuinty should exit stage left from this "Rings" production."