Ottawa & Toronto: The Canadian Taxpayers Federation criticized the Ontario and federal governments for today's announcement of a reported multi-million dollar subsidy for General Motors.

"Government is driving taxpayers down a dangerous road and it's letting automakers take the wheel," said CTF Ontario Director Tasha Kheiriddin. "Once one auto manufacturer gets a subsidy, all the others will quickly line up for a handout as well. Where will it end For taxpayers it means ever-higher taxes and a less competitive business climate."

Last year, the provincial and federal governments gave a combined $200 million in taxpayer dollars to Ford Canada, to "modernize" a plant in Oakville. While the Ontario government has a deficit exceeding $2 billion, Ford's corporate profits last year were $5.8 billion.

"In a province whose government can't balance the books, where hospitals are laying off nurses and taxpayers are paying the highest taxes in ten years, Premier Dalton McGuinty should not be giving public money to private industry," said Kheiriddin. "Subsidizing shareholders' return on investment is not a wise use of taxpayers' money."

Ottawa, meanwhile, has an abysmal record of recouping tax money poured down the corporate welfare hole. Technology Partnerships Canada, Ottawa' flagship industrial assistance program, has collected less than 5% of its loan agreements since 1996, while aerospace manufacturer Bombardier Inc. continues to clamour for more subsidies while laying off workers and seeing its bonds downgraded to junk status.

Kheiriddin added that there are smart policy alternatives. "In Alberta corporate welfare subsidies are illegal. Instead of favouring particular companies or industries, the province has the lowest corporate tax rate in the country. If Ontario and the federal governments are serious about attracting investment and boosting job creation in Canada, they should stop picking winners and losers and build a level playing field with lower taxes."