REGINA: The Canadian Taxpayers Federation (CTF) today added its voice to the rising chorus of calls for an independent audit of SaskWater's $10 million investment in the Lake Diefenbaker Potato Corporation (LDPC) and points out that taxpayers may be on the hook for over $30 million.

"The taxpayers of Saskatchewan are ultimately the ones who will bear the brunt of the government's attempts to sweep SaskWater's half-baked potato investment off its plate. We need clarification and closure - an independent inquest would do just that", says CTF Saskatchewan Director, Richard Truscott.

Yesterday, government MLAs on the Public Accounts Legislative Committee denied a request from opposition members to have the Provincial Auditor investigate the downfall of SaskWater's 'Great Potato Project'.

The provincial Cabinet provided $8 million in loans and assistance for the LDPC last January with little or no security. Only three months later, the LDPC fell into receivership and the Saskatchewan government found itself at the back of the line of creditors, behind the Royal Bank and the Farm Credit Corporation. And according to a Freedom of Information inquiry by the CTF, SaskWater and its subsidiaries also spent $21 million on capital costs to build potato storage facilities in 1997 and 1998.

"Taxpayers shouldn't have to wait for months for answers. The government owes it to the investors in LDPC and the taxpayers of this province to empower the Provincial Auditor to immediately either conduct a full audit himself, or coordinate an outside, independent forensic audit. What does the government have to hide " asked Truscott.

Truscott says that the potato fiasco reinforces the need for the Crowns to be more accountable and the danger of mixing politics and business development. "The most effective economic development policy is lower taxes - plain and simple."

"The provincial government made a wrong turn when it decided to become a leading player in the potato industry, instead of focusing on creating a good business and tax environment for all farmers and agribusiness entrepreneurs," concludes Truscott.