E-2 Labour sponsored venture capital tax credit
Submitted by : various members
WHEREAS labour-sponsored venture capital companies, like the Fonds de solidarité FTQ, Fondaction, and GrowthWorks Capital, are important drivers for economic development, particularly for the start-up of small businesses, which create and maintain quality jobs here in Canada;
WHEREAS labour-sponsored funds are important sources of venture capital, a sector of the Canadian economy which, even adjusted for the size of our economy, was up to twenty times lower than in the United States;
WHEREAS according to Deloitte, the lack of risk capital restricts innovation across the country
WHEREAS many investors planned their retirement based on the return they could obtain from investments and tax credit they get from contributing to a labour-sponsored venture capital fund.
WHEREAS the Conservative government claims it wants to encourage Canadians to save money for the retirement;
BE IT RESOLVED THAT the NDP opposes the Conservative government’s ideological decision in Budget 2013 to eliminate the labour-sponsored venture capital tax credit for funds like the Fonds de solidarité FTQ, Fondactions, and GrowthWorksCapital, companies that serves as savings vehicles for many Canadians planning their retirement; that provide funding to help small business start-ups and encourage innovation, which is largely lacking in Canada; and that help create and safeguard jobs across the country, particularly in the rural areas.
Motion passed.