Progressive Conservative Leader Tim Hudak says the province should tell Chrysler Group to take a hike instead of giving in to the automaker’s $700 million “ransom.”

Hudak said Monday it’s time to end the “corporate welfare” to Ontario’s auto industry, arguing lower taxes will attract investment.

“Should we pay a nine-figure ransom to Chrysler? Of course not. We should use the money to lower taxes for all so all companies can create jobs, not handouts,” he told reporters at Queen’s Park, referring to Chrysler looking for up to $700 million from governments to retool its Ontario plants.

Hudak said it doesn’t make economic sense to bail out a company that already owes Ontario $800 million from the recession driven lifeline back in 2008, “and they owe us a lot of jobs.”

Hudak’s comments quickly drew the ire of Windsor Mayor Eddie Francis, who told the Star he wondered if the Tory leader “was for real or not.”

“Mr. Hudak’s comments are completely inappropriate and disconnected with the manufacturing reality of this province and in this country,” said Francis, who is not running again for mayor in the fall.

After all, he said, the auto industry employs about 150,000 people in Ontario, not to mention the ripple effect it has on the economies of the towns and cities where plants and suppliers are located.

“Those (Hudak) comments came as a complete shock to me . . . to vilify Chrysler I think is the wrong approach here.”

Hudak told reporters it is sad Ontario can no longer attract jobs without giving companies handouts, and noted that Honda opened up a plant in Alliston, Ont. in 1988 without going cap-in-hand to governments. On Friday when he jettisoned his right-to-work policy, Hudak called Chrysler’s demand nothing less than extortion.

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Premier Kathleen Wynne said Hudak is “naïve” to believe Ontario should cut the auto industry loose and risk thousands of good paying jobs.

“I don’t understand why any leader of any party in this province would think that it was a good idea to walk away from the auto sector . . . I think that is irresponsible, I think that it naïve to suggest that,” she told reporters.

“What the Leader of the Opposition is talking . . . about is reversing a policy in this province to work with and support the auto sector that has been in place for decades,” the premier told MPPs later during question period.

Wynne recalled that the Tories under former premier Mike Harris handed out more than $2.5 billion in subsidies to a cross-section of businesses from 1997 to 2001.

NDP Leader Andrea Horwath said governments need to support companies to keep manufacturers in Ontario.

“My dad was an autoworker and I know that was a good job. It kept our family stable, it gave all of my siblings and I a chance at having a decent life. Those jobs are important,” Horwath said.

Hudak is also at odds with the federal Conservative government, which is prepared to loan Chrysler some of the $700 million it may need to update plants in Windsor and Brampton. Ottawa announced in the budget earlier this month an additional $500 million in funding for the auto industry, but federal Finance Minister Jim Flaherty said not all the money is for Chrysler.

“Once you say yes all the time where do you stop?” Hudak said.

“There is no proven economic rationale that says you can subsidize your way to prosperity. It’s just not possible.”

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Wynne told reporters Ontario “is competing with other jurisdictions” when it comes to the auto sector.

“When we put $70 million into the Ford (Oakville) plant to allow them to invest and be more competitive on the global field . . . we are going to work with companies that want to create jobs in Ontario,” she said.