The federal government's regional development programs are wasting billions of tax dollars. The proof starts with the first of a series of new studies being released by the Canadian Taxpayers Federation (CTF) over the next few months.

The first report looks at the activities of the Atlantic Canada Opportunities Agency (ACOA) over the past 10 years. According to its web-site, the Agency has a "broad mandate for economic development in Atlantic Canada." But the numbers tell a different story.

Using data obtained through Access to Information, the CTF analyzed 22,867 separate grants, loans, and other financial assistance provided by ACOA to thousands of different agencies, businesses, associations, labour organizations, and individuals from 1989 to 1999. The main findings are as follows:

Over 72% of the total $2.6 billion disbursed ($1.85 billion) was in the form of non-repayable grants and contributions.

A small number of recipients obtained more than half of all ACOA money. The 475 biggest recipients accounted for $1.5 billion, or 58% of all funds disbursed.

The biggest recipients were actually the provincial governments in the Atlantic provinces. Since 1989, $113 million flowed into the coffers of the Newfoundland government, making it the biggest recipient of ACOA money. The other top-five recipients are also government departments, such as New Brunswick's Department of Economic Development, Tourism, and Culture.

A veritable Who's Who of corporate Atlantic Canada received grants, contributions or loans including companies such as Irving Pulp and Paper Ltd., McCain Foods Ltd., Hershey Canada, and Salter Street Films.

National corporate giants including Bombardier, the Royal Bank, Canadian Pacific Hotels, the DMR Group, Domtar, Honeywell, IBM Canada, Laidlaw Transit, Pratt and Whitney, and Westinghouse all received handouts.

Big Labour, including the Canadian Auto Workers (CAW), and other provincial labour organizations and teachers federations received grants and contributions.

Over $5 million has been used to fund Chambers of Commerce and other business organizations and more than $20 million has been spent on golf courses, snowmobile clubs and other recreational activities.

ACOA loaned out $591 million in the past 10 years but has written-off loans worth an equivalent of 34% of the total amount. And ACOA has written-off almost 50% of the loan values in the past two fiscal years alone.

The Agency approved over $20 million in loans even though according to its own records it has no idea what the funds were used for.

Some of the companies that received money have clear connections to the governing Liberals. The company that acts as the Liberal party pollster, Pollara Inc., obtained $305,000 in contributions in 1995 to expand and modernize its operation in Bathurst, N.B.

Another recipient is Canada Steamship Lines Ltd., which is owned by Finance Minister Paul Martin.

The CTF's analysis points to ten years of waste and questionable funding activities. Despite ACOA's activities, bankruptcies in Atlantic Canada continue to rise. Even the Agency itself admits that the vast majority of job creation in the region is through small business, yet the numbers show that big business and government departments received the lion's share of funding.

Lower taxes and a competitive regulatory environment is the quickest and surest route to economic prosperity. Taxpayer-funded regional development programs hinder prosperity rather than promote it.