/CNW Telbec/ - Speaking before the Board of Trade of Metropolitan Montreal today, Liberal Leader Justin Trudeau demonstrated his party's support for labour funds by stating that he would reinstate the federal tax credit granted to investors who invest in labour-sponsored funds.
MONTRÉAL, Feb. 27, 2015 "The Fonds de solidarité FTQ applauds the leader of the Liberal Party of Canada for acknowledging the importance of labour funds in the Québec and Canadian economies and for committing to reinstate the federal tax credit for our saver-shareholders. This is good news not only for our mostly middle-class shareholders but for the thousands of SMEs that rely on our patient capital," said Gaétan Morin, President and Chief Executive Officer of the Fonds. "I recently announced that the Fonds could invest as much as $1.6 billion in the next three years. This amount is a good reason to question the wisdom of Ottawa's planned phase-out. Mr. Trudeau's commitment today gives SMEs, particularly those in the regions, reason to hope that we will be able to maintain the same level of economic support," added Mr. Morin.
Since 1990, the Fonds' investments have helped create, maintain and protect over 500,000 jobs in Québec.
For the 10-year period from 2002 to 2012, the Fonds committed $6 billion in development capital. Of this amount, $2.1 billion were earmarked for venture capital, invested directly in companies through many Québec as well as Canadian venture capital funds. This makes the Fonds one of the largest venture capital investors in Canada.
The Fonds fills many market gaps in the economy by investing:
- Mostly in the regions, often outside large urban centres;
- In less well served industries such as manufacturing and life sciences;
- In projects that have difficulty securing financing, i.e. small (under $1 million) and major (over $20 million);
- In all the growth phases, from start-up to international expansion;
- In tough economic times, such as in 2001 and more recently in 2008-2009.
The Fonds meets its mission to encourage workers to save for retirement and to further economic growth by maintaining low management fees (an operating expense ratio of 1.4%), offering its saver-shareholders a reasonable return and efficiently leveraging each tax credit dollar, making this type of tax credit a genuine tax investment for the governments.
In 2013, when the phase-out of the federal tax credit was announced, more than 125,000 people came out in support of labour funds by signing one of the largest petitions in Canada. As well, chambers of commerce, business associations and hundreds of business leaders asked the federal government to reconsider its decision.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $10.5 billion as of November 30, 2014, 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 more than 2,450 companies. With more than 600,000 shareholder-savers, the Fonds helps create, maintain and protect more than 172,000 jobs. For more information, visit www.FondsFTQ.com.
SOURCE Fonds de solidarité FTQ
For further information: For media representatives only: Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, Phone: 514 850-4835, Mobile : 514 703-5587, Email: [email protected]; For Fonds de solidarité FTQ shareholders: Shareholder Services, Fonds de solidarité FTQ, Montréal: 514 383-3663, Québec: 418 628-3663, Toll Free: 1 800 567-3663