FOR IMMEDIATE RELEASE
MARCH 1, 2010
McGuinty Chasing Job-creating Investments Away
PC Economic Development Critic exposes Liberal failures on venture capital
?The government?s Ontario Venture Capital Program is a bust. Despite set-up and operational costs that must run into the hundreds of thousands of dollars, no funds have actually flowed from the three commitments made to date. That means that not a single job has been created by this program since it was set up over two years ago,? said Shurman.
FOR IMMEDIATE RELEASE
MARCH 1, 2010
McGuinty Chasing Job-creating Investments Away
PC Economic Development Critic exposes Liberal failures on venture capital
(Queen?s Park) ? Thornhill MPP and PC Critic for Economic Development, Peter Shurman called on the McGuinty government in Question Period today to admit that their venture capital program is an abysmal failure.
?The government?s Ontario Venture Capital Program is a bust. Despite set-up and operational costs that must run into the hundreds of thousands of dollars, no funds have actually flowed from the three commitments made to date. That means that not a single job has been created by this program since it was set up over two years ago,? said Shurman.
According to Canada?s Venture Capital and Private Equity Association, over a 5 year period, venture capital investment created over 114,000 jobs in Canada. While venture capital investments in Ontario dropped in 2009 by 50% from 2008 figures, Quebec experienced a 10% increase in the same year.
Challenged by Shurman, John Milloy, the Minister of Research and Innovation, could not explain why investment in Ontario from venture capital funds had fallen from $1.5 billion in 2000 to just $88 million in 2008.
?It is clear that governments in the rest of Canada understand what it takes to attract job-creating investment to their provinces. The McGuinty government?s bad decision in 2005 to phase out tax credits for venture capital funds has come back to haunt them. The failure of the Ontario Venture Capital Fund is further evidence that the McGuinty Liberals are disconnected from reality when it comes to venture capital,? Shurman concluded.
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For further information please contact:
Debbie Osske, Executive Assistant
Office of Peter Shurman, MPP-Thornhill
(416) 325-2505, debbie.osske@pc.ola.org