Mr. Speaker, I move, seconded by the honourable Member for Baffin South, that Bill 3, Risk Capital Investment Tax Credits Act, be read for the second time. Mr. Speaker, this bill is intended to promote economic growth in the territories and to create and sustain employment in the territories by allowing taxpayers to qualify for tax credits by investing, either directly or indirectly, in corporations that carry on business in the territories and meet certain other specified criteria that qualify the corporation as an eligible business. The bill allows a taxpayer to qualify for tax credits by purchasing shares in any one of three venture capital corporations, labour-sponsored venture capital corporations, employee venture capital corporations and community-endorsed venture capital corporations.

The bill requires the venture capital corporations to, in turn, invest the funds received from investors in the shares of subordinated debt of eligible businesses. A labour-sponsored venture capital corporation must invest 70 percent of its funds in eligible businesses. An employee venture capital corporation must invest 70 percent of its funds in the eligible business that employs investors. A community-endorsed venture capital corporation must invest 70 percent of its funds in eligible businesses that have been endorsed by the communities in which the employees of the eligible businesses live.

The bill also allows taxpayers to qualify for tax credits by investing directly in the shares or subordinated debt of certain eligible businesses referred to as territorial business corporations.

The bill limits the use that an eligible business may make of funds received from a venture capital corporation or from investors in the case of a territorial business corporation, so that the funds may only be used for start-up operations or to expand or acquire an existing business. Thank you, Mr. Speaker.