WINNIPEG: The Canadian Taxpayers Federation (CTF) responded to Opposition Leader Hugh McFadyen's announcement that a Tory government would implement a $10 million, taxpayer-funded start up fund for businesses. According to McFadyen, the fund would focus on science and technology companies, an area that already has considerable access to various other corporate welfare programs.

"With each passing day and policy announcement, the Opposition Tories appear more like the NDP government whose penchant for wasting tax dollars on corporate welfare knows no bounds," said CTF Manitoba Director Adrienne Batra. "The idea of putting $10 million of taxpayer's money at risk for what the Opposition Leader claims to be a response to the failed Crocus fund, is wrong-headed."

The Tories' plan would establish a two-year pilot project, under private sector management to "encourage investment in new, early stage companies by injecting a temporary shot of adrenaline into our capital markets." At the end of the two years, investments would stop, and following a review of Labour Sponsored Investment Funds, move Manitoba toward a private venture capital market.

"This plan may sound good in theory, but it hinges on gambling millions of dollars from taxpayers," added Batra. "This is an area strictly for the private sector; government meddling in capital markets has already created enough headaches and lost revenue for our province."

The CTF recommends that if any political party wants to re-instill confidence in Manitoba's capital markets, a much better way of doing this would be to begin by indexing tax brackets, eliminating the payroll tax and bring down Manitoba's general corporate income tax. "There is no need for government, or opposition parties, to be picking winners and losers in the business game. Reducing the overall rates for all business, regardless of sector is good public policy and would go a long way to show the rest of the country Manitoba is open for business," concluded Batra.