I would like to respond to Mr. Saxton's comment.
I was sitting on this committee last year and I heard the testimony. Only one witness—the person from the University of Calgary—agreed with Mr. Saxton and said that the program was not working. All the other witnesses had the opposite opinion, be it Canada's Venture Capital and Private Equity Association, the Board of Trade of Metropolitan Montreal or the Fédération des Chambres de commerce du Québec—the federation of Quebec chambers of commerce. Many companies and even government witnesses representing the information technology industry felt the same way.
They were told that the labour-sponsored venture capital funds were voluntarily proposing to invest in the government's venture capital action plan in order to double or triple the amounts invested by the government, in exchange for the government's commitment not to reduce the tax credit. The government could have benefited from over $2 billion injected into that fund, compared with the $350 million annual cost of the program it was planning to abolish. The government said no to that proposal.
I think that the events that occurred and the testimony heard in this committee over the course of last year and this year certainly reflect the willingness of the Canadian venture capital industry to maintain the tax credit. That is also the desire of business people and company representatives, especially in Quebec, where the industry is very strong. Even entrepreneurs from outside Quebec agree when they learn about the potential contribution of labour-sponsored funds to the Canadian economy and to the government's plan for improving venture capital.
I think the opposition's arguments do not hold up. Once again, I invite my government friends to reconsider their position in order to ensure the health of Canada's venture capital industry.