I thank the member for his question.
This is a major challenge for Quebec. The province of Ontario has created a new regime.
When I look at this, I'd tell you that this is not effective. This was created to encourage investment in small business. It's become a tax haven where people can hide their money, which is okay tax planning. That's fine; lots of people do it. But it doesn't accomplish the goal that was intended. That's why, for example, the Province of Ontario got rid of it.
If we're going to look at someone independent, the OECD said:
The LSVCCs have distorted the market for venture capital, lowering the average quality of deals and limiting the supply of equity to non-traditional industries and newer companies…. The governance structure of LSVCCs leads to less-skilled fund managers and poorer fund performance…. Overall, the damaging effects of the LSVCC tax credits on the financing of innovation along with their fiscal costs present a clear argument for their elimination.