Industry Committee on June 10th, 2008

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. McKee, speaking of groups that are vying for government dollars—and you have a very worthwhile cause—I'm curious. How is your work done on the worldwide scene, the research? Do you compete for it or do you apply? Is there a little bit of collaboration, say, with the Americans, who obviously spend a lot more than we spend?

[Andrew McKee]

Absolutely. Our research review process is a peer review, labour review based process. It all goes through one central group globally so that we know we are investing in the best research anywhere in the world at any given time.

The history of JDRF's research funding in Canada is such that, because Canadians have excellent diabetes research, we've actually funded more research in Canada than Canadians have raised towards the cost. We've been a net beneficiary of dollars historically in terms of funding research within Canada. But it is one central group that evaluates global research, and it is through application by researchers that the research funding gets allocated.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

I may get back to you if I have time, but I want to ask Mr. Frise a question about AUTO21.

On AUTO21, talking about where our strengths are, do you do any work with trucks? We have a huge trucking industry in this country, and we have a vast continent. Are we doing any work there?

[Dr. Peter Frise]

At the present time we don't have a specific project on heavy trucks, but quite a number of our researchers do a great deal of work with the truck industry.

A good deal of the work of the diesel engine researcher at Windsor I mentioned earlier is funded by International Truck and Engine. There's a great deal of crossover between heavy trucks and light vehicles as well in diesel, and also in hybrid technologies and so on.

The heavy truck industry is quite different from the auto industry per se because of the size of the production runs--5,000 trucks is a lot of trucks, 5,000 cars is three days' production. It's peanuts. So it's not a complete match, but I expect we will be doing some work with the heavy truck industry in the coming years.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

I can testify to the fact that you've been very successful with International. That's my riding as well. You've done a good job, but I would suggest that you might want to look at some possible lightening up on the truck. Those are industries that we could divert into the Canadian economy.

[Dr. Peter Frise]

Right. We're stretched pretty tight. Our budget's stretched like a rubber band.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

You've done a good job, and they are the leading truck manufacturer now, so I commend you for that work as well.

Thank you, Mr. Chair.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Van Kesteren.

We'll finish with Mr. Brison, please.

[Scott Brison, Liberal, Kings—Hants, NS]

Thank you, Mr. Chair.

I have a question.

Peter, I enjoyed my visit to AUTO21 and I was very impressed with what you're doing on the ground there.

We're increasingly seeing collaboration between auto manufacturers where one will focus on one type of engine technology and another will focus on, for instance, hybrids; some are focused on cleaner diesel. It's inevitable that we're going to see a lot more cross-pollination and collaboration within the auto sector, and at the same time we're seeing the rise of the whole clean tech industry and the venture capital around that. Is it possible, in your opinion, for a General Motors or Chrysler or Ford to potentially work together and spin off a specific unit that does nothing but engine research and finance it externally through clean tech?

Ultimately there has to be a lot of collaboration. It strikes me as a way that they could work with people like you and finance it at the same time without it having to come from their current balance sheets. Is that something that you see the automakers having any potential interest in? There's a huge amount of private sector capital pent up to invest in clean tech and there are not a whole lot who want to invest in the North American auto sector right now, and it seems like an interesting way to position it.

[Dr. Peter Frise]

That's a very good question.

I would have to say this. The auto companies generally see the powertrain as a core technology that is part of their competitive edge. So they don't collaborate too much on engine technology per se, but they're doing a lot on transmissions and hybrid drive systems.

One of the most interesting and quite surprising partnerships is actually between General Motors, Chrysler, BMW, and Mercedes. They're developing what's called a two-mode hybrid transmission for rear-wheel-drive vehicles. I believe the R and D centre for that is in Troy, Michigan, and it actually has four separate sections, one for each of the companies. There are common areas where they meet and try things and talk, and other areas where it's verboten for the other guys to go.

[An hon member]

Kind of like Parliament.

[Dr. Peter Frise]

I would hesitate to comment, sir.

So I think there are some issues on which they will collaborate and some issues on which they won't. I think if the seeds were right for Canadian participation in some of that...we already work with all those companies separately on many issues, but it's not easy to get them together around a common table because they compete in the marketplace.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Brison.

Witnesses, I want to thank all of you for your presentations, your submissions, both prior to this and here today, and your responses to questions. We appreciate it very much. If you have anything further to submit to the committee, please do so either through me or through the clerk. We'll ensure that all members get it.

Members, we will suspend for a minute or two and then we will go in camera to adopt the services sector report. So we will suspend for one or two minutes.

[Proceedings continue in camera]