SR&ED is a very good program, and one of Canada's real strengths for everybody in science and technology. It has been funded more in this last federal budget. As you probably know, it is administered by Canada Revenue Agency, which is not a science and technology department--it comprises accountants. In spite of their best efforts, they sometimes look to audit rather than encourage. That's a different mindset, so it's understandable. Canada Revenue Agency should focus on supporting industry with this program, not making sure the claim is 100% audit-proof, or something like that.
On May 29th, 2008. See this statement in context.