- CTF Reacts to Planned Announcement of More ACOA Boondoggle Funding -

Click here for ACOA report

OTTAWA: The Canadian Taxpayers Federation (CTF) has responded to reports which indicate that Prime Minister Jean Chretien will announce a $375 million dollar increase to federal government "corporate welfare" spending in Atlantic Canada over the next five years. The federal government plans to establish a five-year $700 million Atlantic Innovation Fund with a reported $325 million coming from the current funding envelope for the Atlantic Canada Opportunities Agency (ACOA).

"Mr. Chretien's contempt for Canadian taxpayers knows no bounds," stated CTF federal director Walter Robinson. "Less than three weeks after the release of our report which shows that ACOA continues to fund golf courses, snowmobile clubs and some of Canada's most profitable companies with grants and contributions, the government shows no contrition or intention to change."

The CTF found that, during the last ten years:

ACOA has disbursed almost $2.6 billion in 10 years. Over 72% ($1.86 billion) has been in the form of non-repayable grants and contributions.

ACOA loaned out $591 million dollars in the last 10 years but has written-off loans worth an equivalent 34% of the amount lent during the same period. ACOA has almost written of 50% of its loan values in the past two fiscal years alone.

Over $5 million has been used to fund Chambers of Commerce and other business organizations, over $20 million has been spent on golf courses, snowmobile clubs and other recreational activities; and ACOA approved over $20.2 million in loans even though the agency, according to its own records, determined the rationale for the funding support as "unknown."

"This offensive and wasteful spending should cease. The money should be left in peoples' pockets through tax cuts. Corporate welfare fuels public cynicism against politicians and the institutions of government," added Robinson. "Yet if you stand up for responsible spending, focussed priorities and economic freedom through substantive tax relief, the Prime Minister has the nerve to call you greedy."

"It is clear that an election is in the air. The government plans to sink millions of tax dollars into the Maritimes in a blatant attempt to buy votes," concluded Robinson. "The challenge now rests with Atlantic taxpayers. Will they allow themselves to be bought off or will they stand on principle and say no to the corrupt patronage politics of corporate welfare "