Yes.
The accelerated capital cost allowance is not that much a measure related to innovation, but to productivity. If you're talking about the ACCA, it's the classes of assets that are used for manufacturing and processing. It's a productivity measure that gives incentives for companies to replace their old equipment with new equipment and become more productive, more competitive.
Of course, it was introduced as a two-year temporary measure and it's been extended three times. It's going to end this year. We're arguing that it should be extended for at least another two to three years. A lot of our companies have not taken advantage of it, because they hadn't seen profitability before 2010-11. It takes an average of about three years to make that kind of investment, so if they were planning to buy new equipment in 2011, they could probably take full advantage of that measure in 2013-14. Beyond the two-year writeoff, because it's really two and a half years, I think there's a way to review these classes of assets. Because you want a depreciation rate that reflects the real life cycle of an asset.
For example, when I see types of equipment that are related to ICT, information and communications technologies, we all know that ICT equipment accounts for about half the gap in productivity between Canada and the U.S.
Under the old system you have a 30% first-year decline, and then on a declining basis, so 30% of 30% each year after. It takes about 14 years to depreciate 95% of your investment. Do you keep your laptop or your phone or any piece of ICT equipment for 14 years? Maybe there's a way you can review these assets and say maybe two and a half is quite quick, but maybe five reflects the real life cycle of that asset.
I think there's a way we can revamp these classes of assets once the temporary measure is up.