Mr. Speaker, I welcome the opportunity to address the House today at third reading of Bill C-17, an act to amend the Budget Implementation Act, 1997, including the provision of additional funding to the Canada foundation for innovation, and to amend the Financial Administration Act.
I will begin by discussing the increased funding for the Canada foundation for innovation. The CFI was established in the 1997 budget and remains high on the government's list of funding priorities for university research.
Hon. members will recall that the foundation, an independent corporation operating at arm's length from government, was established to provide support for modernizing research infrastructure at universities, research hospitals and not for profit research institutions in the areas of health, environment, science and engineering.
The 1997 budget provided for an initial upfront federal investment of $800 million. An additional $200 million followed in the 1999 budget. Without the extra funding, the foundation's awards would have ended in 2001.
A further $900 million was subsequently announced in the 2000 budget and support for the CFI was extended until 2005. To date the foundation's activities have been well received by its partners, groups like universities, research hospitals, business, the voluntary sector, individuals and provincial governments also provide funding.
The provinces, for example, strongly support the participation of their research institutions in CFI programs, either by contributing to CFI supported projects or by establishing complementary funding programs of their own. Quebec and Ontario, for example, provide matching funds for CFI awards.
The CFI provides up to 40% of funding to support research infrastructure projects, all of which helps universities and research hospitals acquire the laboratories and equipment they need for state of the art research.
So far the CFI has supported 95 research organizations across Canada, including 65 universities, 18 colleges and 12 research hospitals. Bill C-17 legislates an additional $1.25 billion in funding in 2000-01 to the Canada foundation for innovation and extends its activities to the year 2010. The amount includes $500 million from the October 2000 economic statement and budget update, and a further $750 million that was announced on March 6 by the Ministers of Finance and Industry.
The $500 million announced in last October's economic statement will be invested in two ways. First, $400 million will allow the foundation to contribute to the operating costs of new awards. The remaining $100 million will help support the participation of Canadian researchers in leading edge international research projects and facilities that offer significant research benefits to Canada.
The additional $750 million announced in March for the CFI will build on this funding by providing additional stability to universities as they plan their future research priorities.
The CFI needs the additional funding to help it support the operating costs of new awards and the participation of Canadian researchers in international research projects. Further, additional funding for the CFI would help the federal government to reach its goal of at least doubling its current investment in R and D by the year 2010, a commitment that was made in the Speech from the Throne in January.
Bill C-17 also amends the Financial Administration Act. It is a statute that encompasses the financial administration of the Government of Canada, the establishment and maintenance of its accounts, and the control of crown corporations. The act also sets out the statutory framework under which the government can borrow money.
Bill C-17 would improve the operation of the Financial Administration Act. It would reinstate the Canada Pension Plan Investment Board as one of the crown corporations exempted from divisions I to IV of part X of the Financial Administration Act. The exemption would protect the independence of the board while the Canada Pension Plan Investment Board legislation would provide a strong accountability regime.
Amendments to the Canadian Wheat Board Act in 1998 inadvertently deleted the Canada Pension Plan Investment Board from subsection 85(1) of the Financial Administration Act, meaning that the board was subject to various crown corporation control provisions under the Financial Administration Act, which put it in conflict with its own mandate. Clearly it was neither wanted nor intended and Bill C-17 would correct that error. This change would be retroactive to December 1998 to ensure that the Canada Pension Plan Investment Board had always operated within the laws of Canada.
The second amendment reinforces the authority of parliament over any borrowing by or on behalf of the crown. It provides for greater certainty that it is parliament that must specifically authorize borrowings made on behalf of Canada.
The measure would also provide clarification and consistency respecting the role of the Minister of Finance ensuring appropriate management of government indebtedness. Bill C-17 would ensure that all borrowings, not just the borrowing of money, are subject to the supervision by the Minister of Finance.
In closing, the amendments to the Financial Administration Act would improve its operation. The changes to the Budget Implementation Act, 1997 that would provide additional funding to the Canada foundation for innovation and extend its activities to the year 2010 are consistent with the government's commitment to at least doubling its current investment in R and D by the year 2010.
The Canada foundation for innovation is deserving of this increased funding so that it can continue to promote research in Canada and inspire young new Canadian researchers.
I know that my colleagues in the House support investment in education, research and innovation. I encourage them to pass the legislation later this day.