MONTRÉAL, June 11, 2015 /CNW Telbec/ - Speaking before the Board of Trade of Metropolitan Montreal today, New Democratic Party of Canada Leader Thomas Mulcair reiterated 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.
"In the same way as the business community, Thomas Mulcair and the NDP understant the vital role of labour-sponsored funds for Québec's economy. By commiting to reinstate the tax credit, New Democrats recognize that the Fonds is a key player for tomorrow's economy", declared Gaétan Morin, President and CEO of the Fonds de solidarité FTQ. "I recently announced that the Fonds could invest up to $1.6 billion in Québec businesses over three years. This amount is a good reason to question the wisdom of Ottawa's planned phase-out. Mr. Mulcair'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.
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.
Since 1990, the Fonds' investments have helped create, maintain and protect over 50,000 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.
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