NLIS 3
December 16, 2004
(Innovation, Trade and Rural Development)
(Finance)

 


Venture capital legislation passed

Innovation, Trade and Rural Development Minister Kathy Dunderdale and Finance Minister Loyola Sullivan announced that government passed legislation yesterday allowing it the authority to register a labour-sponsored venture capital fund in the province. 

"In our Blueprint, this government committed to improving incentives for those who make long-term venture capital investments in medium and small enterprises," said Minister Sullivan. "This program will encourage residents to invest locally. It will improve the ability of small and medium enterprises to raise capital, thereby facilitating the growth and success of local businesses and improving employment opportunities in the province." 

"Government�s goal is to provide an environment which encourages the growth and expansion of local businesses," said Minister Dunderdale. "Through this legislation, we will retain private investment capital in the province and make it accessible to small and medium-sized businesses in Newfoundland and Labrador. In particular, investments will be targeted at growing and emerging sectors of the provincial economy." 

The corporation would raise equity capital from residents of the province with the support of a 15 per cent provincial tax credit, matched by a 15 per cent federal tax credit. Investors must hold the shares for at least eight years. The money invested in the corporation will go into a pooled fund which is then re-invested by the venture capital corporation into eligible local businesses. 

Media contact:

Lynn Evans, Innovation, Trade and Rural Development, (709) 729-4570 or (709) 690-6290
Diane Keough, Finance, (709) 729-6830 or (709) 685-4401

2004 12 16                         4:15 p.m.


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