Mr. Speaker, Bill C-4 will eliminate the tax credit for labour-sponsored venture capital funds. The Conservative government recognized that small and medium-sized businesses in Canada do not have enough venture capital to start up and bring their ideas and products to the market.
What solution did the Conservatives come up with? Strangely, they want to eliminate a tax credit that has been very effective in sustaining venture capital funds. This change makes no sense and it will hurt all Canadians, and Quebeckers in particular, as they represent 90% of the Canadians who use this tax credit and often put the shares directly into their retirement savings plans.
It is high time that the government reconsidered its ill-advised decision in light of the proposal supported by Canada's Venture Capital and Private Equity Association.