Thank you, Mr. Chair.
I will first address Mr. Penney, but I will need Maryse Harvey to answer questions on aeronautics taxation.
As Mr. Penney seems to be having problems with the interpretation, I will immediately go to Mr. Cairns, of the Shipbuilding Association of Canada. It looks like he's having the same problem, so I will move on to Mrs. Harvey.
Mrs. Harvey, unless I'm mistaken, the wording of section 37 of the Income Tax Act is problematic in terms of R & D. I'm talking about paragraph 37(1)(d), which states that we must deduct the total of all amounts “each of which is the amount of any government assistance”. When this legislation was drafted, only the Canadian government would provide money for R & D, so the term “federal” was not explicitly stated. Since Quebec launched its provincial R & D program, the money allocated by the provincial government has had to be deducted from eligible expenses. Is that correct?