Toronto: The Canadian Taxpayers Federation (CTF) expressed its opposition today to media reports that Premier McGuinty intends to pump hundreds of millions of dollars into a new fund for automakers to develop 'greener cars'. "In his budget, Mr. McGuinty promised to hold the line on spending. Just five days later he has broken that promise. There is no line in the budget for this new Cash for Car Makers Lottery," said CTF Ontario Director Kevin Gaudet.

The Ontario government already had a $500 million bailout of the automotive industry in the Ontario Automotive Investment Strategy that it set up in 2004. The government touts the benefits of that program to amount to $7 billion in investment. "If the government really believes it got $7 Billion return on its $500 million investment, then why would they need even more taxpayer dollars " asked Mr. Gaudet. "This is the problem with corporate welfare, once companies get the taste they keep coming back for more.

"As for the environment, last year the McGuinty government handed over tens of millions to subsidize the five-litre, V8, gas gullzer Camaro. Now their offering subsidies to discourage production of cars like the Camaro. Which is it " asked Gaudet.

"Ontario's automakers should not enjoy special status with special government lottery wins like this new fund. Instead, they should compete on a level playing field for R&D dollars just like ever other company in Ontario", continued Gaudet. "The government should focus potholes not and should leave the auto industry in the private sector."


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For more information please contact:
Kevin Gaudet at 416-203-0030 office or mobile 416-725-0501