Thank you.
Thank you, Mr. Chair, for giving us the opportunity to come speak to you about the consequences of eliminating the tax credit for labour-sponsored funds and about the offer we have made to the government.
First, I would like to give you a few figures about the Fonds de solidarité FTQ. The fund has more than 615,000 shareholders, or nearly 15% of the Quebec workforce, principally from the middle class, people who are unionized and non-unionized. The proportion of unionized workers to non-unionized workers is around 50-50. 205,000 of our shareholders had never contributed to an RRSP before becoming shareholders of the fund. The FTQ also has 2,395 partner companies, principally SMEs in all the regions of Quebec, and it has invested $5.5 billion over the last 10 years, of which $2.2 billion were invested in venture capital.
Now I would like to explain first the consequences of the measure, and also to talk to you about the offer we have made to the federal government. As concerns the consequences of the measure, you have to understand there are three groups that will lose out: Quebeckers with savings, the Quebec economy, and finally, the entire venture capital industry in Canada.
Quebeckers with savings will lose a tax incentive that allows hundreds of thousands of Quebeckers to better prepare for retirement. In reality, these peoples' taxes will increase. Furthermore, the Quebec economy will lose out because eliminating the tax credit will reduce our cash inflows, which will immediately and significantly reduce our ability to invest in the economy. Finally, venture capital in Canada will also be affected. With less money to invest, there will be no choice but to significantly reduce investments in venture capital, and consequently, our fundamental role as a fund.
I will conclude my presentation by explaining the offer that we have made to the federal government.
Our proposal was as follows. In return for maintaining a tax credit and a review of the program in 2018, labour-sponsored funds in Quebec would firstly reduce the immediate cost for the government by 30%. This decrease could come from a cap on our cash inflows and, if necessary, a reduction in the rate of the tax credit.
Secondly, we would invest two dollars in venture capital for every dollar of tax credit for the duration of the venture capital action plan. More specifically, we proposed to the federal government to invest $400 million in private funds outside of Quebec and $550 million in private funds in Quebec—funds that would have the opportunity to invest across Canada.
Finally, we would also invest directly $1 billion in venture capital businesses in Quebec.
Labour-sponsored funds in Quebec have offered the federal government a total of $2 billion in venture capital, in exchange for reducing the tax burden and reassessing the situation based on the program's 2018 results.
In conclusion, I would repeat that if the bill is adopted in its current form, our cash inflows will be reduced by around $4.5 billion over 10 years, which means $4.5 billion less in retirement savings for Quebeckers. It also means there will be around $3 billion less to support SMEs or private funds over the next 10 years.
I respectfully entreat the committee to remove all provisions dealing with this tax credit from Bill C-4, and to urge the government to consider the offer of the Quebec labour-sponsored funds. At the very least, your committee could amend the bill to reflect the offer we have made to the government.
Thank you for your time. I am ready to answer your questions.