B737 FLT CREW CHALLENGES A CYYZ LCL CTLR INSIDE OF 2 MI FOR RWY 5 WHEN CTLR CLRS A BUSINESS JET FOR TKOF WITHOUT MONITORING THE DEVELOPING CONFLICT.

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WE WERE INSIDE MEADOWVALE ZLP; FULLY CONFIGURED AT APCH SPD ON THE ILS TO RWY 5 AT CYYZ WITH CLRNC TO LAND FROM THE TWR. THE CTLR THEN CLRED A BUSINESS JET FOR TKOF. AS WE APCHED THE RWY; THE BUSINESS JET WAS STILL IN POS AND SOMEWHAT DIFFICULT TO SEE BECAUSE IT BLENDED IN WITH THE WHITE RWY MARKINGS. THE CAPT ASKED THE TWR IF THE BUSINESS JET WOULD BE ROLLING. THE TWR CTLR'S REACTION MADE IT OBVIOUS HE WAS OBLIVIOUS TO THE STATUS OF HIS RWY AND THE CONFLICT HE HAD CREATED. HE HASTILY ASKED US TO GO AROUND AND WE EXECUTED A SAFE GAR AND FOLLOWED HIS INSTRUCTIONS. IF THIS HAD BEEN AT NIGHT OR IF WE HAD FAILED TO SEE THE SMALL WHITE BUSINESS JET AGAINST THE WHITE RWY MARKINGS; THERE IS NO DOUBT WE WOULD HAVE HIT THIS AIRPLANE; OR LANDED OVER THE TOP OF THIS JET IN POS. IT WAS OBVIOUS THAT THE TWR CTLR WAS NOT PAYING ATTN TO THE CONDITION OF RWY 5. THIS OP IS AN ACCIDENT WAITING TO HAPPEN. AT OTHER ARPTS; THE CTLR DOES NOT NORMALLY ISSUE YOU LNDG CLRNC UNTIL THE RWY IS CLR OR THE ACFT CLRED FOR TKOF HAS STARTED THE ROLL. THE TWR CTLR CLRED THIS ACFT FOR TKOF WITHOUT PROPER SEPARATION AND THEN PROCEEDED TO IGNORE THE DEVELOPING SIT HE HAD CREATED.