REGINA: The Canadian Taxpayers Federation (CTF) is repeating its call for an end to corporate welfare in Saskatchewan after the province announced they are giving millions of dollars to the film and meat industries.

Under the recently-announced subsidy regime taxpayers will be paying up to 55 per cent of the costs of films produced in Saskatchewan - an increase of 10 per cent. In 2004 the Saskatchewan government gave $4.2 million to film producers. Budget 2005 forecasts the total subsidy to more than double to $9 million - and that's under the pre-existing rate.

The government estimates the Film Employment Tax Credit contributed to the creation of 850 full time jobs last year.

"Who is representing the interests of taxpayers here " asked CTF Saskatchewan director David MacLean. "The film industry is playing the Saskatchewan government like a worn-out movie script, drawing them into bidding war with other provinces. It's a race to the bottom where nobody wins except film producers."

"The film industry does not need government handouts to film their productions in Saskatchewan," added MacLean.

Province "invests" $3.3 million in meat processing
The province has also announced a $3.3 million contribution to meat processing facility. This latest announcement is part of a $37.3 million "Meat Processing Strategy" announced earlier this year.

"When will this government learn The reason we don't have a mature meat processing industry in Saskatchewan is government policy." said MacLean. "Our present tax system includes a crushing corporate capital tax, provincial sales tax on business inputs and the highest corporate income tax rate in the country. What do they expect will be the result If subsidization were a successful jobs strategy Saskatchewan would be leading the nation in economic growth."

"If the government really wants to expand the economy they have to look at the fundamentals of taxation and regulation and not throw hard-earned tax dollars at businesses."