Finance Committee on Nov. 7th, 2013

[Catherine Cobden]

Yes.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I have Al-Pac in my riding and Northland Forest Products—the Ewashkos—two of the most modern mills in the world today.

[Catherine Cobden]

Absolutely.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

In 2004, 2005, and the start of 2006 they were not the most modern mills in the world. In fact I was told that the forest products industry itself was looking at death.

[Catherine Cobden]

Absolutely, in 2005, 2006, 2007 we had some pretty deep dark days. We have turned the corner from a sunset industry to a sunrise industry.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Exactly.

[Catherine Cobden]

But it's predicated on the adoption of innovation, hence I think that's why we've been invited to be here today and the transformation agenda. Al-Pac is one of the success stories that I was mentioning with the IFIT program.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Exactly.

[Catherine Cobden]

It's a very exciting opportunity that's right in the heart of it.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Do you know how much this government gave to Al-Pac for its success?

[Catherine Cobden]

I don't know the exact numbers of the $100 million, but it was out of the $100 million IFIT program that they received funding. Do you know the number?

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I do know several numbers. They've received I think about $70 million for their innovation.

[Catherine Cobden]

Okay.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

I wasn't just from IFIT, but for other things, the black tar subsidy issue that we have with the United States, and different things like that.

But what I'm asking is this, because I've only got about 30 seconds left. How does the industry look today compared to what it looked liked before the Conservatives took power?

[Catherine Cobden]

There's no question that we're leaner. We have had a tremendous job loss for reasons we cannot have controlled—the structural decline in products and slowing global economy as you know. I think we're poised for a tremendous success into the future.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

My understanding is that we actually lead the world now in innovation in forest products--

[Catherine Cobden]

You know, some of the examples I was citing are world leading, but they've been brought to you by the support of FPInnovations, which you've been doing, and the IFIT program. Hence, I'm here to ask you to look at that again.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Do you want to congratulate our government?

[Catherine Cobden]

Yes.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, you can go ahead and say that if you like.

[Voices]

Oh, oh!

[The Chair, Conservative, James Rajotte]

Thank you Mr. Jean.

I want to thank all of our witnesses, both here in Ottawa and Toronto, for being with us here today. Thank you very much for your presentations responding to our questions.

Colleagues I will suspend for about two minutes and then we will begin with the second panel, please.

[The Vice-Chair, NDP, Peggy Nash]

Welcome. Good afternoon to all the witnesses. We'll reconvene our finance committee, and we have six more witnesses this afternoon.

They include Paul Davidson, president and CEO of the Association of Universities and Colleges of Canada. Welcome.

I also want to welcome Mr. Jean Lortie, from the Confédération des syndicats nationaux.

We have Andrew Van Iterson from the Green Budget Coalition. Welcome.

We also have Karna Gupta, president and CEO of the Information Technology Association of Canada.

We have Elizabeth Cannon, president and vice-chancellor, University of Calgary, and vice-chair of the U15 Group of Canadian Research Universities. Welcome.

By video conference we have Mr. Natan Aronshtam from Deloitte LLP. Welcome, Mr. Aronshtam.

Everyone has five minutes for a presentation. Then we'll begin questions.

[Paul Davidson, President and Chief Executive Officer, Association of Universities and Colleges of Canada]

Thank you, Madam Chair.

It's great to be back at this committee, and I really wish you well in your work.

This fall Canada's universities welcomed the class of 2017 onto their campuses. These students will be graduating in the spring of Canada's 150th anniversary. The skills, knowledge, and experience these students acquire will contribute directly to Canada's prosperity for decades to come.

In previous years at this committee I've spoken of how every major public policy goal Canada is pursuing passes through the doors of Canada's universities.

I'm here today to focus on university research enterprise and its direct link to Canada's prosperity—and it is a direct link. For example, we know, as the member for Chatham-Kent—Essex knows very well, the tremendous impact of research on agricultural productivity innovation, improving the livelihoods in farming communities across Canada, and feeding Canadians.

As the member for Rimouski knows very well, in small communities we can see the impacts and direct effects of cutting-edge research, for instance at the Institut des sciences de la mer of the Université du Québec in Rimouski, which I had the privilege of visiting last summer.

In April of this year I spent a day with 25 university presidents in the riding of Fort McMurray—Athabasca where we saw firsthand the role of research and innovation in the responsible development of the oil sands.

The member for Kings—Hants, not currently present, is very familiar with how Acadia University's Tidal Energy Institute is advancing the science of harnessing the tides for clean energy.

I will add that I don't need to elaborate for the member for Kingston and the Islands the tremendous impact of research being done in that constituency.

Canada's universities conduct over 38 per cent of all research done in Canada. It's vital for Canada's future that the right policies and programs be in place to drive research and innovation, and the global competition for research and talent is unrelenting. The parliamentary secretary and I had the chance to see just how intense that global competition is as part of the Governor General's mission to Singapore in 2011 where, during the course of the mission, members of our delegation were being actively recruited by Singaporean research institutes.

Canada has done well, but we can do better. Canada, at this moment, has a unique opportunity to scale up innovation, to advance our competitive position in the global marketplace, and to equip a new generation of young people to achieve their potential.

We must view this objective with a sense of urgency to seize the moment. More than half of all faculty members in Canada have been hired in the last decade. They are a generation of top researchers in full flight. They are at their most productive and innovative with the greatest potential in their careers. Let's not miss out on that potential and tell them they need to wait another half decade.

Graduate student enrolment, which is low compared to U.S. and European competitors, has grown by 80 per cent in this decade. There are now 150,000 graduate students in Canada, with the fastest areas of growth being in the STEM disciplines. More than two-thirds of these graduate students will ultimately work outside universities, mainly in the private sector. We want to ensure they develop the research, innovation, and entrepreneurial skills to drive Canada's competitive advantage.

As I mentioned, AUCC's pre-budget recommendations focus on research. The first recommendation is for the government to commit to the principle of sustainable, predictable funding for the federal research granting councils, investments that lead the rate of growth in the economy. The research the councils support is foundational to all other aspects of Canada's research enterprise.

The AUCC also recognizes the importance of investments in infrastructure and joins with the Canada Foundation for Innovation to demand a multi-year reinvestment strategy.

AUCC was pleased to see a review of the indirect costs research program announced in Budget 2013. We believe that the indirect costs program is essential to Canada's universities. The program is effective, but has been chronically underfunded since its creation in 2003.

In our submission, we indicated that addressing the ICP is a priority. We have also advanced an innovative new proposal to meet public policy objectives and link to Canada's competitiveness strategy. Canada's universities support the creation of a new research excellence fund that would be complementary to, not a replacement of, the indirect costs program. This fund must be open, competitive, flexible, and based on peer review.

Dr. Elizabeth Cannon, president of the University of Calgary, is here today as well, and she will elaborate in a few moments on the merits of a new research excellence fund.

Madam Chair, like all members of this committee, Canada's universities share ambitious world-leading aspirations for our country. As we welcome the class of 2017, investments in Canada's universities will help young Canadians fuel innovation and strengthen economic prosperity in communities right across the country.

Merci.

[The Vice-Chair, NDP, Peggy Nash]

Thank you very much, Mr. Davidson.

Mr. Lortie, you have the floor. You have five minutes.