They could be some of the means used to deal with the situation. With tax credits, money flows, because people are able to immediately change their process. Access to venture capital is also a tool.
In its most recent budget, Quebec set aside $1.7 billion to deal with the lack of capital. There exist different types, and a large portion will go to the technology sector. Ontario has created a fund of several million dollars. In my view, there is pressure as well as a desire to try to do more in Ontario. British Columbia has a tax credit program for retail investors. Quebec has just revived a tax credit program for investors.
The federal government announced additional funds for BDC in November 2008, and in this year's February budget, it provided additional funding for EDC and BDC. However, it is not yet clear how much of this money will be devoted to venture capital and it would seem, from what we are seeing on the ground, that this is insufficient. This should be clarified and that element of the package should perhaps be strengthened.
The various governments are creating funds, but investment is generally not the affair of a single company. Venture capital investments are often done by a group. If the federal government has a role to play, it would be that of catalyst, working with other funds in order to resolve the problem.
What is happening right now, particularly with BDC, is for the time being rather vague. How much money will be used for venture capital and will this be sufficient?