Finance committee  I would even go further. I think we can be an instrument for harmonizing the partnerships between the various institutions. I was also at that meeting last night. We had nine universities that are essentially world-class universities in ocean and arctic research. One of our jobs at the Canada Foundation for Innovation is to ensure that we can maximize the use of the investments that we're making by fostering partnerships between institutions.

Finance committee  Let me try to answer that.

Finance committee  We are. We call ourselves TC3 plus. So the Tri-Council—SSHRC, NSERC, and CIHR—are the three granting councils that are obviously agencies of government. CFI is another group that essentially supports the research activities by providing research funding for equipment and facilities.

Finance committee  They would go to the agencies—SSHRC, CIHR, or NSERC—for the research funding. They would come to us for the facilities, for the equipment and the installations.

Finance committee  That's what I was going to say, Mr. Chair. I'll put on my former hat as a former university president. First of all, we have to recognize that defined benefit plans across Canada are very, very challenging in a period where the inflation rate is extremely low and where the actuarial estimates also need to be adjusted, number one.

Finance committee  There may be one. Personally I cannot draw such a direct link. I will come back to your question on the funding of research. Over the past two years, there was certainly a levelling off, but it was during a very difficult economic period for all countries. Even though the funding has levelled off, we have to celebrate the fact that it was maintained.

Finance committee  Let me explain—

Finance committee  —what CFI is all about. CFI is not a granting council per se. We are an independent—and I guess this is why I've been invited here—organization, an arm's-length organization, which benefits from the investments that the Government of Canada is making in the Canada Foundation for Innovation so that we can reinvest these funds into universities, colleges, and research hospitals.

Finance committee  No—and that's the challenge we have. I'm glad you're raising that question. Essentially we receive money at the will of government on a sporadic basis. So for the past 15 years our awards have been somewhat unpredictable depending on the environment and the conditions and so on and so forth.

Finance committee  For example, there's the work that's being done at CERN where Canadians have been involved in particle physics. Some of the greatest developments in technology have taken place because of the basic research that's been done there. So that has been a very important aspect. To your second question, it's part of our outreach activities.

Finance committee  To the first question, our first recommendation is to advocate for more support for the granting council. As I have said, it's important to ensure that we keep pace with the needs. When you mentioned basic research, absolutely, I think there is a tremendous need to continue our investments in basic research.

Finance committee  Yes, absolutely. We've invested in research infrastructure over the time and these facilities are essentially open for business, as I've indicated. The idea is to try to bring in the private sector to use the facilities that are located within universities and colleges, to benefit from the expertise that is there, the people, number one, but also the facilities that they would not be able to develop or build by themselves.

Finance committee  It's a very complex issue. If I had the answer to that question, we would all be looking at implementing the elements of the solution. In many ways, it's related to the lack of innovation and productivity that might be taking place within the private sector. A report called Paradox Lost was released two weeks ago by the Council of Canadian Academies.

Finance committee  —have been as innovative as they needed to be to address the situation.

Finance committee  Thank you, Mr. Chair. First, please allow me to thank you, as well as all of the members of the House of Commons Standing Committee on Finance, for your kind invitation. Today I'll be speaking directly to the topic of federal support for research and innovation. In fact, I'd like to start by offering two recommendations.