Labour demands a stop to the phase-out of the Ontario tax credit for LSIFs

KINGSTON – Milt Isaacs, chair of the Association of Canadian Financial Officers (ACFO) and sponsor of the largest Ontario LSIF, asked the Ontario government to stop the phasing-out of the provincial tax credit for Labour-sponsored investment funds.

Flanked by representatives of the Canadian Police Association and the Professional Institute of the Public Service of Canada and with support from other labour groups, Milt Isaacs stated, during a presentation to the Standing Committee on Finance and Economic Affairs, that the Committee members should recommend to the Minister of Finance that “the tax credit should be confirmed and that the announced phase-out be cancelled.”

Mr. Isaacs also reminded Committee members of the statement made to his Association by the former Minister of Finance, the Honourable Greg Sorbara, soon before the election. The former Minister had said that: “the government would look back at the steps it had taken in regards to LSIF and see how, in the future, they can be involved in the venture capital market in Ontario.”

The Labour-sponsored investment fund program is a successful one, thriving in almost all of the other Canadian provinces. The program repays the provincial investment in about a year and has provided over 200 companies with investments of over $3 billion, creating over 27,000 high-value jobs and lowering unemployment by 0.3%. Successful companies include Research-in-Motion and other high-tech companies.

“Ontario needs to decide whether it will be leading the pack in terms of the new economy or whether it wants to follow. It needs to decide if it wants high-tech firms to stay or move out of the province,” said Milt Isaacs. LSIFs are part of the winning strategy to strengthen our economy.

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For more information or to arrange an interview, please contact:
Milt Isaacs, Chair, Association of Canadian Financial Officers – (613) 728-0695

The Association of Canadian Financial Officers represents the Financial Management Group (FI) of the Public Service of Canada. Its members are financial officers employed in 54 departments and agencies throughout government. Almost 3,000 financial professionals are members of ACFO, and most hold professional accounting designations or business degrees. Two-thirds of its members are located in the National Capital Region, with the balance in the regional organizations of departments.