Mr. Speaker, I would like to ask my government colleague a question about research and development. We know that major changes were made to tax credits for scientific research and experimental development following the Jenkins report.
There are some particularly troubling elements in Bill C-45, including the fact that the government will cut tax credits for certain industries that really need them right now by $500 million. These credits will be converted into grants. Winners and losers will be chosen by the government.
The second element we do not like is the fact that capital expenditures will no longer be eligible for tax credits. This will cause significant harm to some industries, such as those in the manufacturing and natural resource sectors, because they need to set up pilot projects.
I would like to know whether the member is comfortable with the fact that the government is planning to decide who wins grants and who loses rather than provide tax credits. Why will capital expenditures, which were not mentioned in the Jenkins report's recommendations, no longer be eligible for tax credits?