OTTAWA - Ottawa's most controversial corporate subsidy fund is greatly benefiting the Canadian economy despite the program's poor repayment record and repeated government efforts to make major changes, according to a consultant's report that has never before been made public.

The report, commissioned by Industry Canada's audit and evaluation branch, concluded that Technology Partnerships Canada has produced a net benefit of $32.3-billion to the Canadian economy over most of its existence, or 8.6 times the program's total costs.

The report also states that TPC, according to at least one cost-benefit analysis, is doing a better job than its U.S. counterpart, Advanced Technology Program (ATP).

Although Ottawa has chosen not to release the consultant's report, even though it was submitted almost a full year ago, the document could help bolster the case for TPC supporters trying to salvage its existence.

Industry Minister Maxime Bernier, a staunch supporter of free markets, is reviewing the program. He has said all options, including its cancellation, are on the table.

Tim Weil, a TPC spokesman, said the report's results are encouraging. He said he isn't sure why the document hadn't been publicly released but that it's now being translated, and is scheduled to be posted on the TPC website soon.

TPC has been a lightning rod for those who believe corporate subsidy programs are inherently ineffective, particularly compared with simple tax cuts or other uses of public money.

The program, originally billed as something that would turn a profit within a decade, didn't achieve a repayment record of 10 per cent of annual contributions for the first time until two years ago.

But Prof. Savoie said it's impossible to accurately quantify a subsidy program's economic benefits because it can never be known how many of the corporate investments would have been made without the government's help.

The report, which also acknowledges that difficulty, attempted to assess the economic and social benefits of 693 TPC programs. The company attempted to measure total sales, and the spinoff benefits of those sales, derived from TPC investments, while discounting for those sales that would have been achieved without government help and the "leakage" of benefits to other countries.

TPC provides venture capital -- often described by government officials as "repayable loans" -- for corporate research projects. When that research leads to a commercially successful product, the government collects a return through royalty payments on sales of the product. When the research leads to nothing, or a product that doesn't sell, taxpayers are shut out.

Business groups and companies themselves, however, have mixed views about TPC. Many prefer low taxes to corporate subsidies, but admit they can't turn down government cheques if they're available. Others say government needs to play a role in helping tech companies that can't get private money.

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