Finance committee  It is roughly that, yes.

Finance committee  Yes, that's correct. Innovation and productivity are two very important drivers of business growth in our sector in the next decade, for sure.

Finance committee  There is a variety of models. I would say that very few countries do not offer tax credits for R and D; the vast majority do. As to the generosity of the tax credit, Canada's is not the most generous tax credit, if you look at large companies. Keep in mind that SR and ED is in

Finance committee  I guess it's twofold. There are of course some companies that don't have the capacity to move R and D to other jurisdictions. I would say that for those companies the options are limited. Since we're talking about larger companies, many of them actually have this mobility. They w

Finance committee  Thank you very much, Mr. Chair, and members of the committee. Thank you for inviting us to appear today on Bill C-45. CME represents about 10,000 manufacturers and exporters across the country who account for 80% of Canada's manufacturing production and over 90% of all exports o

Industry committee  To answer that question, I would remind you that someone appeared before your committee on this study. I believe he said that there was a study showing that 60% of businesses that had received venture capital in Canada were bought out by foreign companies and went elsewhere. The

Industry committee  According to the surveys of our members, the majority of businesses that do not have their head offices in Canada but that have subsidiaries in Canada, make their decisions on what are called global product mandates at their headquarters. When you consider 40% to 50% of manufact

Industry committee  Basically, there is a $663 million reduction in federal money for the SR&ED tax credit. There is an injection of $333 million in new direct funding, which will be available to private businesses. There have been other announcements. For example, the granting councils have r

Industry committee  If I may, but more on the first part of your question. We have calculated how much is taken out of SR and ED and how much has been announced in new measures in the budget. So far, you can't really compare IRAP and what is taken out of SR and ED. As we said, $750 million was tak

Industry committee  What we calculated is the impact on the financial incentives. From a company point of view, whether you use it in the same year or use it in three years, it's going to disappear. The gap, just on federal, we estimated as $663 million per year instead of $500 million. The other th

Industry committee  The majority of the job losses—a big part—that happened in the manufacturing sector are due to the rapid appreciation of the dollar. It's not that the high dollar is necessarily the problem, but the rapid appreciation has been the problem. You don't adapt to a 40% increase in you

Industry committee  Productivity doesn't happen overnight. We're starting to cope with that. If you look at employment, manufacturing is about 10% of total employment in Canada. It's now stable since last year. If you look at TD Economics' forecast, you are talking about between 10% and 12% of total

Industry committee  When we say “underestimation”, it's pretty much based on the way it has been calculated by Finance officials. In the last budget, what they have calculated is the impact on government revenues. Now, government revenues on SR and ED are spendings. You have to keep in mind that if

Industry committee  All businesses are important. As I said, you have to take into account the fact that there are approximately 25,000 companies in Canada that are engaged in R&D and are eligible under the SR&ED program. However, the 75 largest businesses incur 50% of all R&D expenditur

Industry committee  In our sector, and in the manufacturing sector in general, when say technology investments, we are talking first of all about investment in machinery and equipment. Many R&D expenditures are increasingly incurred for equipment specific to this concept of telecommunications pr