Ontario Premier Dalton McGuinty said he won't rule out helping Toronto's world-famous Santa Claus Parade get a new home.

Organizers of Toronto's parade are hoping the province will give them a major present this year towards new digs -- $4 million.

They say the 105-year-old parade has grown so big, Santa's current Toronto workshop is too small to house the mass of floats and colourful costumes.

Organizers argue they need a building with five-metre high ceilings and large doors.

The parade costs about $1.3 million to produce each year. It is run by a non-profit organization mostly made up of 1,500 volunteers.

Corporate sponsorship of floats helps it break even. Organizers say they need more space, but cannot afford the move.

They hope to convince the province to give them the money so they can make the annual parade bigger and longer.

Premier Dalton McGuinty explained that the province needs to get a better grasp of other commitments this year before it can make promises.

Ontario has a record deficit of $24.7 billion.

"I'm always leery about saying no to Santa," said McGuinty.

He said the province will see if it can help, but the help may not be in the form of cash.

"We might have some space available, a government building somewhere. And that's certainly worthy of a thorough search on our part," he said.

The parade draws millions of people from all over Ontario each November. It is televised around the world and airs as far away as New Zealand and Norway.