- CTF Makes Corporate Welfare a Key Issue Before Next Week's Vote -

No More Corporate Welfare Pledge

OTTAWA: The Canadian Taxpayers Federation (CTF) today challenged the leaders of all major national political parties (Liberal, Canadian Alliance, the NDP, and PCs) to sign the CTF's "No More Corporate Welfare" pledge, committing each leader to wind up corporate welfare subsidies during the first term of their respective governments, should they be elected. The pledge is also available online, should leaders of other political parties running in this election wish to sign on.

"All the party leaders have talked about ending wasteful spending and focusing on the priorities of Canadians. So it's now time to put our money where their mouths are," said CTF federal director Walter Robinson. "They must translate their rhetoric into a solid commitment by signing on to our pledge to end wasteful corporate welfare subsidies whether they be grants, contributions or loans and loan guarantees."

"Each dollar that goes to profitable businesses is one less dollar available for tax relief, debt reduction or needed funds for health care and infrastructure," said Robinson. "This is not an ideological question. It's about the role of government. And government should not be playing venture capitalist with scarce taxpayer dollars."

The CTF pointed out the dismal and alarming record of handouts to business over the past two decades includes:

• $5.6 billion from Industry Canada (distributed between 1982 and 1998) in subsidies and loans to 75 of Canada's largest and most profitable corporations;
• $2.5 billion of this amount was in the form or conditionally and royalty based agreements which yielded a pathetic 4.87% return or $124 million in repayments;
  The Atlantic Canada Opportunities Agency (ACOA) lent out $591 million to businesses over the last 10 years but has already written of 34% of its total loan portfolio;
• Western Economic Diversification (WED) has lent out $132 million in conditionally repayable contributions in the last 13 years but has only received $4.5 million or 3.4% in actual repayments; and
• Industry Canada, WED, ACOA and other regional development agencies have disbursed over $120 million in assistance to golf courses, yacht clubs, chambers of commerce, big unions and nefarious festivals over the past decade alone.

"Canadian taxpayers deserve better. We deserve a Prime Minister who will shut off the corporate welfare tap. Our pledge will see if any of the current leaders are up to the job," concluded Robinson. "And we are prepared to quickly arrange a media event should any of the leaders wish to publicly sign our pledge."