Governments are terrible at picking business winners and losers but business losers are great at picking governments. Unfortunately for taxpayers, the Saskatchewan government has yet to figure this out.

Saskatchewanian's have endured insult added to injury over the years seeing hundreds of millions flushed down the toilet in failed business ventures. $800 million lost on the Meadow Lake Pulp Mill, $40 million lost on a whacky potato venture or millions more lost on internet startup Navigata, taxpayers have clearly had the proverbial fork stuck in them.

Yet the central planners in Regina continue their quixotic pursuit of a more "diverse" economy, playing high-stakes poker with other peoples' money. In the past year the government put more than $3.5 million into a failing Moose Jaw pork plant only to have the plant close, possibly for good, little more than six months later.

More recently, the government announced something called the Apex Investment Fund. On your behalf and in partnership with some credit unions, the province will spend $60 million to "invest" in small and medium sized businesses. It's noteworthy that it wasn't specified whether the handouts would be in the form of loans or direct government ownership. No matter. Crown Investments Corporation Minister Maynard Sonntag assures us that the businesses will actually have to put up some of their own money in order to qualify for funding.

That's small consolation, given this government's track record in business.

Why does Saskatchewan need such a fund Apparently, there is a shortage of investment money in the province - not enough willing buyers. But what the government doesn't seem to get is that the "Apex Fund" and other government shenanigans are the problem.

Ironically, the Apex fund won't solve the problem because government "investments" are the problem.

Look at the situation from the point of view of a hypothetical entrepreneur in Alberta who's looking to set up a biodiesel plant in Saskatchewan. She has an affordable location picked out and guaranteed feedstock. She's looked at the tax situation and it's tough, but she can make it with her business plan. All of the challenges of doing business in Saskatchewan are accounted for and the advantages outweigh the disadvantages. The one thing she can not plan for, and will not be able to withstand is the government sweeping in and subsidizing her competition, squeezing her out of the market and raising her input costs.

This scenario is all too familiar for Mission Ridge Ski Hill president Don Williams. Late in 2006, the government announced a handout of nearly $900,000 to re-open the moribund Blackstrap ski hill near Saskatoon. Don Williams and his partner have invested $1 million in their hill near Fort Qu'Appelle.

Seeing the government dish out nearly a million dollars to a competitor was a kick in the teeth for Williams and his business. In an email to NDP Minister John Nilson, Williams recently quipped: "On the 20th of this month we will owe about $11,000 in self-assessed PST on the purchase and installation of our chairlift. To save time should I just mail the cheque to Mount Blackstrap so that they might begin competing against me sooner."

Government investment in the economy has a chilling effect on potential investment. After getting burned on misguided business ventures in the early 90's, the Alberta government saw fit to pass legislation banning government subsidies to businesses. If it's serious about removing barriers to investment, Saskatchewan ought to do the same.