I would like to thank the chairperson for allowing me the opportunity to speak at the committee today. I'm particularly glad to appear, given that one of the committee's principal goals is to look at ways of making Canada more competitive. This is a goal I firmly support, and I think research libraries play a significant part in achieving this objective by the information services and resources they provide directly in support of research and innovation.
The Canadian Association of Research Libraries represents Canada's major academic research libraries, as well as public institutions such as the Library and Archives Canada and the Library of Parliament. Our members' collections form the backbone of Canada's intellectual holdings in all disciplines. Collectively, our members spend more than $500 million in new acquisitions.
Competitiveness and success are built upon a dynamic research sector, which in turn must rely upon access to information that is current and comprehensive. That's why, in 2004 alone, 40% of research activities took place in Canada's universities, which were fully supported by Canada's university research libraries.
The government has already recognized the importance of economic research by increasing funding to a number of grant councils and research programs in its budget of 2006, something that we applaud.
They are all important steps forward, but it is important also to look at other steps that need to be taken so that Canada's research institutions can best compete internationally.
I will focus on three of these today: the indirect costs of research program, the GST, and the new challenges of e-learning.
Concerning the indirect costs of research program, increases in funding to granting councils such as NSERC in the last budget ensure that Canada's strong research foundation reaches its full potential. But beyond supporting direct costs of research in Canada, we must consider their related indirect costs, particularly to Canada's research libraries. Whenever there is an increase in direct research grants, there is a corresponding increase in indirect costs. The indirect costs of research program helps offset these, especially at research libraries. Funding, for example, is used to expand access to electronic resources and journals and databases critical to all research, as well as acquiring the technologies that deliver these resources efficiently and quickly for our researchers.
Previously, the indirect costs of research program covered about 25% of the overall cost of research grants to universities. New investments in the last budget have raised that figure to 26%, but for Canada to be internationally competitive, we need to reach 40% coverage.
On the GST, presently university libraries receive a full rebate on the GST they pay on printed books and on subscriptions to most print magazines and periodicals. This means the budget goes further, resulting in more and new materials on the shelves. Nowadays, however, scholarly materials overwhelmingly are being delivered in an electronic format, to the point that now in fact we spend more on electronic journals and resources than we do on print. However, such materials are not eligible for the GST rebate. There is no apparent justification for this. An electronic journal varies only from the print edition in medium, and the funds freed up by rebating electronic materials can and should be used to purchase other materials. Here, a minor change in definition can have a major effect.
On e-learning, as Canada moves towards a knowledge-based e-economy, electronic or e-learning will become more and more important to serve the needs of learning communities. E-learning is a critical component in Canada's overall capability to sustain economic development and foster a cohesive civil society. It provides the ability to access and deliver high-quality educational materials, anywhere, at any time. Beyond the university, it helps Canada's scattered population upgrade professional and trade qualifications, as well as focus on lifelong learning.
A national e-learning strategy should be a natural Canadian priority. That's why we're pleased to be working with the Canadian Council on Learning to develop one. One of Canada's strategic goals should be to compete internationally with countries that are implementing strong national plans in this area.
I have two important closing notes that will be of interest to parliamentarians. First, CARL members are spearheading an exciting new project, called the Alouette Canada open digitization initiative, which brings together libraries, archives, museums, and other interested communities to present our cultural heritage, documents, and artifacts online to our citizens and to the world. Most importantly, Alouette Canada provides for ensuring access to that heritage. This is a project that will impact your constituents and is worthy of public support.
Secondly, I would be remiss if I did not highlight Mr. Lunn's recent decision to keep producing printed topographical maps and to keep the Canada Map Office open. This decision will mean that Canadians can continue to have access to printed maps that are critical for safety in so many traditional Canadian pursuits, such as hiking, canoeing, boating, and tourism.