Mr. Wallace has heard presentations on initiatives that we've done at the finance committee over the years.
In addition to direct investment by government, you have a couple of vehicles. You have BDC and EDC. They are active and can do more, particularly on the funding of funds. IRBs offer one creative way. There are these companies like Boeing and Lockheed and now Irving that have billions of dollars of IRB obligations to invest in Canada. Why not provide them with these incentives to get these accelerated credits if they invest in qualified VC funds, funds that will focus on early stages, because that's where the need is?
I'm in the retail venture capital industry. When the program was started the federal government provided a 20% tax credit to investors in retail funds up to a maximum of $5,000. That was in the mid-1980s when the RRSP tax credit was $7,000. Well, we now know the RRSP credits are about $22,000, and the retail venture is still at $5,000, so that's an issue. And the tax credit has been reduced to 15%. If you take it back to the original 20%, we think you'll immediately increase the supply of VC to the entrepreneurs who need it.