Quebec’s technology sector says the economic and immigration policies of the incoming Parti Québécois government, not sovereignty, are its main worry, according to BetaKit’s reporting on Oct. 7.
The PQ won a minority government in the Oct. 6 election. BetaKit reported that a referendum is likely at least two years away, which leaves near-term budget and immigration choices as the issues founders and investors are watching.
Richard Chénier, chief executive of the startup group Québec Tech, said the sector needs policies built for startups. He said tax cuts “sometimes… doesn’t have any impact” on early-stage companies, many of which are not yet profitable.
Jean-François Harvey, Quebec director of the Council of Canadian Innovators, said the sector needs “stability and predictability” as trade uncertainty continues. He added that the “devil is in the details” of any policy. The council has asked for a venture-investment tax credit, procurement reform and faster immigration for skilled workers, BetaKit reported.
CTV News’s party platform tracker says the PQ would cut the small- and medium-sized business tax rate to 9.5 per cent from 11.5 per cent. The tracker says that would save a company with $5 million in taxable income about $90,000. The party would pay for the cut by scrapping the Fonds de développement économique, CTV reported, and would cap subsidies for foreign companies.
BetaKit said the fund lets Investissement Québec run financial assistance for many small and medium-sized businesses, which makes its fate a concern for tech firms that rely on that support. The PQ has not said, in the material reviewed, what would replace it for startups.
Immigration is the other pressure point. According to CTV, the PQ would lower the permanent immigration threshold to 35,000 newcomers from 45,000 and declare a moratorium on economic immigration. It would also cut the number of temporary residents to between 200,000 and 250,000 by the end of a four-year term. BetaKit reported that tighter rules could make it harder for tech companies to find and keep talent.
CTV’s tracker lists no PQ commitments specifically on innovation or tech policy. BetaKit reported that the party has talked about boosting productivity through automation and robotics, but the tracker does not confirm that.
The concerns come as Ottawa works on its own startup measures. Tech groups asked the federal government on Oct. 6 for a U.S.-style tax break for small-company investors, and the federal budget is expected this fall. A minority government in Quebec City would need opposition support to pass any of the PQ measures, so the details may change.
This is a developing story. The platform figures come from the PQ’s campaign promises as summarized by CTV, not from a tabled budget or bill.
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Sources: BetaKit (Oct. 7), CTV News Montreal party platform tracker.
