• CTF calls on Harper and McGuinty Governments to stand-up for taxpayers, not failed American corporations

OTTAWA/TORONTO: The Canadian Taxpayers Federation (CTF) today released figures that trace how much Canadian taxpayers have spent to prop up the Big Three domestic auto makers since 2003, and is calling on the federal and Ontario governments to resist sinking even more tax dollars into companies that need to be radically restructured.

Access to Information documents and campaign promises in the table below, show that since 2003 alone, the Big Three, General Motors, Ford, and Chrysler, have received or been promised $782-million from taxpayers. This figure does not include hundreds of millions more committed previous to this.

"Taxpayers cannot afford to continue to bail out mismanaged companies that expect perpetual handouts in good and bad times," stated CTF Acting Federal Director Adam Taylor. "The Big Three's demand for tax dollars occurs as regularly as these same companies shed shifts and jobs and it's time to put a stop to throwing good money after bad. Thousands of layoffs have shown clearly that these subsidies are not working."

Automakers are now looking to Prime Minister Harper and Premier McGuinty for more public money to the tune of $1-billion. CTF data also reveals that firms receiving handouts in the form of "repayable loans" don't pay back the money or in some cases aren't required to for 50 years.

"A clear example of the Ontario government's misguided auto strategy is its decision to give millions of dollars to General Motors to build a gas-guzzling muscle car like the Camaro, at a time when most companies are moving to fuel efficient vehicles," stated CTF Ontario Director Kevin Gaudet. "Ontario taxpayers have provided more than half the money to the Big Three only to see jobs disappear as quickly as the handouts do. Further, the so-called $175-million "loan" to General Motors in November 2003 won't even come due until Dec. 31, 2055. Do you know of a bank that offers an interest-free loan without a single payment due for two generations " asked Gaudet.

Taylor concluded: "If governments continue to shore-up the ailing auto industry expect other industries -- from textiles to aerospace -- to come cap-in hand pleading the case for how "special" their industry is and how worthy it is for handouts. This nonsense has to end. The CTF will be mobilizing its supporters this week encouraging Canadians contact the government en masse and say NO to an auto bail-out. The Harper and McGuinty governments need to stand-up for taxpayers and not failed American multi-national corporations."