Senator MARK BISHOP (6:15 PM) —Thank you, Minister, for those comments. I refer you to the first paragraph of your press release on the BITS program. It says:

The program will provide $158 million to address current market failures and policy gaps that are preventing the optimal growth of new and developing innovative Australian IT and T businesses.

In the last sentence you make reference to the venture capital sector. We are aware from press reports that you have been to the United States in the last few weeks discussing the issue of venture capital and capital gains tax relief. It has been a topical issue for both parties now for 18 months or so. It arose from a Senate Economic References Committee report on industry policy which, from memory, recommended concessions be made in the area of capital gains tax. Both the government and the opposition are exploring that particular option in their own way.

How does the government see addressing current market failures and policy gaps through the allocation of funds having any impact at all on the venture capital sector when, as I understand the position of the government, the major roadblock to the growth of a significant venture capital sector in Australia, both from local funds and from imported funds from United States pensions, is the fact that there is such a high capital gains tax to be realised when a matter comes to fruition? How will this allocation of funds assist that, or is it not relevant at all?