One of the key criteria that the Jenkins panel highlighted was the need to make the SR and ED program less complex and to make it more user friendly. Of the elements that are eligible in the R and D base, capital is certainly the most complex element. There are rules that govern the acquisition of capital equipment, the use of that capital equipment over time, the disposition of that equipment, whether or not there's any recapture. The use of capital is very complex from an administrative and compliance point of view. It's also a relatively small percentage overall of SR and ED expenditures. Canada is not alone in removing capital from the base. Other countries, the United States and Japan, for example, among our G-7 counterparts, do not have capital in the base for R and D. Other countries, such as Australia, Singapore, New Zealand, the Netherlands, similarly do not include capital in their R and D base.
For reasons related to that reduction in complexity, it's a relatively modest proportion overall. We think it's a reasonable change to make.