Speaking today to the Toronto Board of Trade, Conservative Leader Stephen Harper challenged the business community to turn down government grants and subsidies, in return for lower business taxes.

“That is what I mean by low-tax solutions rather than high-spending solutions,” said Harper.

He criticized a system that has allowed corporations to benefit from government subsidies, saying Canadians have not received value for their money.

Harper said he would also reform regional development agencies, focus on tax cuts or credits and “get out of the grants and subsidies game.”

By reducing corporate welfare, Harper said he could eliminate the $12 air security tax, reduce capital gains tax rates, and reduce the business income tax rate, including cuts to the small business rate.

Harper said he believes a comprehensive audit by the auditor general would discover that a significant portion of the $18 billion in subsidies, grants and contributions “does not deliver value for money.”

He said the audit would free up at least $4 billion.