Toronto: The Canadian Taxpayers Federation (CTF) today expressed opposition to new calls for a massive infusion of corporate welfare for auto parts manufacturers. CTF Ontario Director, Kevin Gaudet said, "if corporate welfare really created jobs, every Ontarian would have at least two jobs already".

The Automotive Parts Manufacturers Association of Canada is calling on both the provinces and the federal government to funnel another $400 million in loans in an effort to bail out struggling firms.

The Ontario government already had a $500 million bailout of the automotive industry in the Ontario Automotive Investment Strategy that it set up in 2004. The government touts the benefits of that program to amount to $7 billion in investment. "If the government really believes it got $7 Billion return on its $500 million investment, then why would the industry need even more taxpayer dollars " asked Mr. Gaudet. "This is the problem with corporate welfare, once companies get a taste they keep coming back for more."

Chrysler received millions from the Ontario government then recently announced layoffs of 2,000 employees.

Magna firms have received tens of millions of dollars in government aid while its CEOs, Donald Walker and Siegfried Wolf, each have received over $5 million making them some of Canada's best compensated executives, according to the Globe and Mail's Executive Compensation Report, 2006.

Gaudet concluded, "corporate welfare does not create long term sustainable jobs and ends up subsidizing generous pay packages for executives."