Inflation is at historic highs and a global economic recession is looming. We just went through more than two tumultuous years of pandemic disruption, and our government will need solid economic growth to rebuild our health care system and pay for the social programs we all value.
Posted yesterday at 4:00 p.m.
But instead of talking about the policies and strategies that the government could adopt to promote the creation of wealth in Quebec, the main issue that is causing concern in the technology and innovation sector, on the eve of the outbreak Quebec elections, it’s Bill 96.
Recently, the Superior Court of Quebec suspended two articles of Bill 96 related to access to courts in French and English. This is a convincing example that shows that this law was hasty and badly designed.
Last June, 37 heads of Quebec technology companies signed a letter addressed to Premier François Legault to sound the alarm about the impact of Bill 96 on our economy. In the weeks that followed, more than 100 Quebec business leaders added their voice to this open letter and to date, more than 150 leaders have signed it.
Some see the debate on Bill 96 as a questioning of Quebec identity and the role of French in our society. But I do not agree.
Review our economic strategy
Every CEO I speak to is a proud Quebecer who cherishes our unique cultural identity. They support the objective of Bill 96, namely to increase the use of the French language in the private sector. We all want to defend francophone society, especially the leaders who founded their business in Quebec and want to see it prosper here. No one is more proud of Quebec than the leaders who work to create jobs and flourishing businesses headquartered in Quebec.
Entrepreneurs are very worried about the impacts of Law 96, because they fear that its entry into force will harm their growth.
For the leaders of technological companies, the stake with the law 96 raises a discussion on the economic priorities, which we want to review. For decades, the Quebec government has courted foreign companies by encouraging foreign direct investment, because they thought that attracting large multinationals to build factories or mining sites would have significant economic benefits.
But in the technology and innovation sector, foreign investment mainly leads to the development of intellectual property of digital data by these companies, while the profits and economic advantages accrue to head offices established outside Quebec.
Combine language and growth
We should ask ourselves: do we want Quebec to be a source of cheap tech talent for global tech giants? Will Quebec culture remain strong and dynamic if our economy is nothing more than a branch of foreign companies?
Or do we want the Quebec economy to be propelled by the creation of wealth from companies founded by Quebecers and having their head office here?
If we want our tech sector to thrive, our government needs to listen to the companies created in Quebec that are trying to grow and develop.
The government needs to listen to entrepreneurs who say Law 96 needs to be put on hold until it can be implemented in a way that won’t hurt the growth of the tech and innovation sector.
And the government should listen to local tech companies that want to see Quebec promote their local content in public markets.
Finally, the government should also listen to local innovators who question why foreign tech giants receive generous tax credits to establish branches in Montreal, thus exacerbating the shortage of qualified talent.
Support our businesses
The next election campaign must focus on the kind of economy we want.
What message are we sending to local entrepreneurs when our government’s tax credits are just as generous for foreign companies for setting up a satellite office as for a local company, well anchored in the Quebec economy?
If the government is so proud of its companies in the technology and innovation sector, why are we spending so much money to attract global technology giants rather than proudly supporting companies headquartered in Quebec?
In the weeks to come, this election should focus on the creation of wealth for the entire Quebec economy. If we cannot create strong and growing businesses based in Quebec, we cannot hope for prosperity and a strong society in the 21st century.e century.