EDMONTON, AB: The Canadian Taxpayers Federation applauds Energy Minister Sonya Savage for scrapping two costly corporate welfare programs, but urges government to the scrap petrochemical diversification subsidy.

“It’s great that the Energy Minister is scrapping two corporate welfare programs, saving taxpayers a ton of money,” said Franco Terrazzano, Alberta Director for the Canadian Taxpayers Federation. “But the minister should be cancelling all corporate welfare programs, including her petrochemical subsidies.”

The Alberta government is scrapping the Petrochemicals Feedstock Infrastructure Program and the Partial Upgrader Program. Each program could have cost taxpayers $1 billion through grants and loan guarantees.

The Alberta government announced it is continuing with the Petrochemical Diversification Program which could cost taxpayers an extra $950 million.

The Canadian Taxpayers Federation obtained a leaked briefing note produced by Treasury Board and Finance officials warning former finance minister Joe Ceci about the risks associated with subsidies for the petrochemical industry, which states: “the proposed incentive program cannot be justified on economic merit alone” and “there is no guarantee that the incentive program will actually lead to additional investment.”

The Alberta government spends $2,451 per person more than the average of British Columbia, Ontario and Quebec, according to the Blue Ribbon Panel’s report. This means spending would be $10.4 billion less every year if Alberta’s spending was in line with the average of these comparable provinces. The Blue Ribbon panel forecasted the Alberta government’s debt to surpass $100 billion by 2022.

“Corporate welfare is always a bad investment, but given the current fiscal situation and the need for cuts in tomorrow’s budget, corporate welfare is nothing short of reckless,” said Terrazzano. “It’s time for politicians to stop pretending to be businesspeople by risking tax dollars trying to pick business winners and losers.”