Yvon Bolduc, president and CEO of the Fonds de solidarité des travailleurs du Québec FTQ, this week presented a $2 billion proposal to the House of Commons Standing Committee on Finance intended to retain the federal tax credit for labour-sponsored venture capital funds, which is scheduled for phase-out by 2017. The proposal would see Québec labour funds commit $950 million to private Québec-based and Canadian venture capital funds, and make $1.05 billion in direct investments in innovative companies. The proposal would also decrease the federal cost of the tax credit program by a third, or approximately $300 million over 10 years.
Yvon Bolduc presents to MPs $2 Billion offer to federal government for job creation and retirement savings
Montréal, November 25, 2013 – Yvon Bolduc, President and Chief Executive Officer of the Fonds de solidarité FTQ, spoke today before the House of Commons Standing Committee on Finance, where he presented the details of the proposal made by Québec’s labour funds to the federal government in order to maintain the tax credit for labour-sponsored funds. The proposal addresses Ottawa’s venture capital concerns while at the same time preserving an important savings incentive.
“The $2 billion proposal made by Québec’s labour-sponsored funds answers all of Ottawa’s concerns,” said Mr. Bolduc. “It makes it possible to keep the federal tax credit as well as increases the amount of venture capital available in Canada. It also allows labour-sponsored funds to continue their important role of helping Canadians save for retirement while helping to create and preserve jobs.”
Mr. Bolduc asked the Committee to maintain a federal tax credit and to accept the proposal made by Québec’s labour funds:
– Decrease the federal tax cost by a third (approximately $300 million over 10 years);
– The two labour funds would invest $2 in venture capital for each tax credit dollar throughout the duration of the Venture Capital Action Plan:
– $550 million in Québec private funds that invest in Canada;
– $400 million in private funds outside Québec, including $120 million in the two national funds of funds called for in the Venture Capital Action Plan;
– $1.05 billion invested directly in companies in addition to the funds’ investments in the Venture Capital Action Plan during its duration.
About the Fonds de solidarité FTQ
Created in 1983, the Fonds de solidarité FTQ has been driving the Québec economy for 30 years. With net assets of $9.3 billion as at May 31, 2013, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and further Québec’s development. The Fonds is a partner, either directly or through its network members, in 2,395 companies. With 615,664 shareholders-savers, the Fonds helps create, maintain or protect 170,915 jobs. For more information, visit www.FondsFTQ.com.
Information for media representatives only:
Senior Advisor, Media Relations and Communications
Fonds de solidarité FTQ
Phone: 514 850-4835
Mobile : 514 703-5587
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Photo of Yvon Bolduc courtesy of the Fonds de solidarité des travailleurs du Québec FTQ.