Finance Committee on April 27th, 2023

[The Chair, Liberal, Peter Fonseca]

Thank you.

[Scot Davidson, Conservative, York—Simcoe, ON]

Thank you, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

Thank you for that, MP Davidson.

Now we are actually going to our final questioner, MP Dzerowicz, before we conclude this session.

Mr. Dzerowicz, you have five minutes.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much, Mr. Chair.

Thanks again to all of you for your patience.

I have one final question on the Canada innovation corporation.

We've invested a lot in research and development in the past. While we've done a really great job with Canadian researchers creating IP, a lot of foreign companies have come in to actually buy that IP and commercialize it elsewhere.

I want to know whether there's anything right now within the framework of the Canada Innovation Corporation that's going to incentivize our R and D dollars to be partnered with Canadian innovators and maintain the value here in Canada, or do we have to wait for regulations or programs to be created to create that requirement?

[Greg Reade]

Thanks for that question.

Within the BIA context you'll see that one of the functions outlined for the corporation is explicitly that it will promote the development and retention of intellectual property.

As far as the specifics on the how, it's not within the legislation. You can look at the blueprint document that was released for some indication of how we think it may make sense for it to materialize in the corporation. Ultimately, that will be up to the CEO, the chair and the board as they develop and roll out those programs.

There are some specific ideas. We talked about the asset collective. These are examples of things that make sense, but it's really just the education and awareness up front for Canadian businesses as they think about R and D. Before they even undertake the R and D, have they thought about a path to making sure it can be retained in Canada and that the economic potential and value is realized in Canada?

These are at the forefront of the policy thinking on the corporation.

[Julie Dzerowicz, Liberal, Davenport, ON]

Yes, and I do agree. It's the education that needs to be really turbocharged, as I call it.

I'd also say that even with our dollars that we give to our universities, we don't right now provide the incentives for university research to actually partner with Canadian innovators versus the Googles and some of the international companies. I think that's a loss for us right now.

It has just come to my attention. Right now I'm making sure everybody's aware of it, so we start making those corrections as we move forward.

In part 4, division 25, we have “Modernizing the National Research Council”. Is there anything in any of the changes that actually ensures that the R and D is partnered with Canadian innovators? Are there any incentives around that or are there different objectives for the changes in the section?

[Greg Reade]

I understand there'll be another session with representatives from the National Research Council. They will be able to talk to you in depth on those provisions.

I apologize. I don't have the information today.

[Julie Dzerowicz, Liberal, Davenport, ON]

That's okay.

My next set of questions is actually around the immigration changes. Those are sections 16, 17 and 19.

Is there someone here who can respond to that?

[Galen Countryman]

Nobody can today. We're here for set divisions one to nine, 32 to 34 and 37.

[Julie Dzerowicz, Liberal, Davenport, ON]

Oh, I have such intelligent questions, though, for those.

Okay, I still have a minute and a half. Hold on and let me see.

Part 4, division 2 is on strengthening the federal pension framework. Pensions, of course, are so important for Canadians. I know in my riding of Davenport, they think about it all the time. I have just a general question.

How will these changes benefit Canadians?

[Kathleen Wrye, Director, Pensions Policy, Financial Sector Policy Branch, Department of Finance]

Thank you very much for the question.

These amendment will create a new federal framework for defined contribution plans and pooled registered pension plans to offer this new decumulation vehicle or drawdown in retirement called variable payment life annuities. Currently, unlike a defined benefit plan, which provides a lifetime retirement income, defined contribution plans and pooled registered pension plans, or PRPPs, provide a lump sum at retirement.

Individuals are required to manage their savings throughout their retirement and manage the risk of outliving them. A variable payment life annuity will allow individuals to take their lump sum at retirement and enter into this VPLA fund, which will be part of the larger pension plan, and then receive lifetime payments from the fund. The payments will be adjusted for investment returns and the life expectancies of the other participants.

In this way, it's going to strengthen retirement security for these individuals because now they'll have this lifetime stream of retirement income.

[The Chair, Liberal, Peter Fonseca]

Thank you, Ms. Dzerowicz.

That concludes our meeting for today.

It was great to see everyone in such spirits today, all the members, the staff, the interpreters, the team, everybody who is here. I know why it is; it's because of our great officials who are before us.

Thank you so much for coming in, answering so many questions and your testimony for this study. We really appreciate it.

On behalf of our committee we thank you.

That will conclude our meeting. Thank you.

We're adjourned.