Recommendation two is specifically aimed at the situation that universities face, or the higher education sector generally, where the research funding that flows from the granting councils is for direct costs only. That would be things like salaries of graduate students, materials, and so on and so forth.
On the indirect costs that are associated with research, such as the provision of space, libraries, and all these other many good things, in fact studies have shown that the magnitude of that is about 40% to 60% of the direct costs.
They used not to be refunded at all in Canada. They're now refunded through the indirect program, up to around 23% or so. That is still far short of the numbers I mentioned, and far short of what happens in the U.S., where it's about 50% or 60%, and in the EU.
I think what we're suggesting is that, at the very minimum, we go to 40%. Otherwise you have a disincentive, frankly, for universities to even want the research.