REGINA: A new scheme to spend $60 million on an investment fund for businesses is being panned by Canada's largest taxpayer advocacy group, the Canadian Taxpayers Federation (CTF).

"This government never learns," said CTF Saskatchewan director David MacLean. "For some reason, Saskatchewan politicians have never learned that government is terrible at picking winners and losers, but losers are great at picking government. One would think that hundreds of millions in lost tax dollars would be enough to drive the message home, but apparently not."

The province announced a new fund, in partnership with Saskatchewan credit unions, that will invest in small and medium-sized businesses. Taxpayers will contribute $60 million to the fund with credit unions picking up the remaining $40 million.

According to a government press release, the fund will directly invest in companies which operate in "the key strategic sectors identified in the Saskatchewan Action Plan for the Economy: value-added agriculture, advanced technology, manufacturing, energy, mining and forestry."

"The government central planners have it backwards once again," added MacLean. "If there is a shortage of capital in the market, the government ought to be looking for the barriers to private investment and removing them. Ironically, one of the barriers to investment in the province is government investment in the economy."

"The key to a strong economy is not more government meddling," said MacLean. "Saskatchewan needs low and fair taxation, less red tape and less government investment."

"The government should stick to its core business of maintaining highways, hospitals and schools, and keep hard-earned tax dollars from being wasted on business subsidies."