Released on April 4, 2017
Today the Government of Saskatchewan introduced the Labour-sponsored Venture Capital Corporations Amendment Act, 2017.Changes to the act will ensure the long-term sustainability and success of these funds, while ensuring the Government of Saskatchewan can meet the challenge of reduced resource revenues.
Through consultation with SaskWorks Venture Fund Inc., and Golden Opportunities Fund Inc., the Government of Saskatchewan is amending the changes previously announced in the 2017-18 Provincial Budget. The tax credit amount is being amended from 20 per cent to 17.5 per cent, the program cap is changing from $80 million per year to $70 million per year, and the annual fund cap is being reduced from $40 million annually to $35 million annually.
“The Government of Saskatchewan understands that small and medium sized businesses in our province have a need for long term, patient capital and has provided enough resources to ensure that the Labour-sponsored Venture Capital Corporation (LSVCC) industry will continue to be available to fund the growth of those companies,” Economy Minister Jeremy Harrison said. “I would like to thank the LSVCC industry for their collaborative efforts to ensure the long-term sustainability of these funds.”
“In a tight fiscal environment stakeholders must come together to find solutions that reduce costs for government while maintaining adequate resources for the long-term viability of the program in question,” SaskWorks Venture Fund Inc. President and CEO Randy Beattie said. “In consultation with government, the Labour-sponsored Venture Fund industry in Saskatchewan has done exactly that. While any cuts are unfortunate, these changes are structured in such a way to allow SaskWorks Venture Fund to continue its successful track record of raising capital in the province and profitably investing that capital back into high quality Saskatchewan based businesses for years to come.”
“Golden Opportunities recognizes the fiscal challenges facing the province we invest in and the reality that difficult decisions were required,” Golden Opportunities Fund Inc. President and CEO Grant Kook said. “We understand the need for this one-time adjustment to the Labour-sponsored Venture Capital Corporations program, and on behalf of our 28,000 shareholders, appreciate the government’s recognition of the importance of the program to job creation and the diversification of Saskatchewan’s economy. This ongoing support will play a key role in reducing the province’s reliance on resource revenues through Golden Opportunities investment in successful innovation and growth companies.”
The changes to the Labour-sponsored Venture Capital Corporations Act will be implemented for the 2018 tax year.
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For more information, contact:
Deb Young
Economy
Regina
Phone: 306-787-4765
Email: deb.young@gov.sk.ca