Finance committee  I think it's a really important question, and I think we've made great progress in recent years with the research agenda, with funding on both the infrastructure and equipment side and on the human resources side: the CRC side, the Vanier scholarships, and so forth. And with the direct funds and the commitment to an indirect cost program, the pieces of the package are there.

Finance committee  We'd be quite happy with a loan on reasonable terms--especially if, in the end, it was converted into a grant.

Finance committee  Well, I think it's a strategic investment in the prosperity agenda for the federal government. Second, when we acquired our property for the McMaster Innovation Park, 37 acres of a former industrial site, we received a $10 million grant from the Province of Ontario and a $5 million grant from the City of Hamilton in support of that project, but we acquired it too late to participate in the federal program to support research and innovation parks.

Finance committee  Yes, I.... Thank you. I will be looking for a job after July 1.

Finance committee  This is a complicated issue, but let me say that I believe it's true. That's why so much of the focus on the part of AUCC and COU and the research-intensive universities, the G13, has been on the indirect costs of research. When we receive research grants, which only provide for the direct costs of research, the indirect costs must come from within the universities' operating budgets.

Finance committee  I think it's perfectly clear. Generally speaking, I think we're very good in Canada at doing research and producing intellectual property. The weakness is on the commercialization side and that's why we've chosen to address it. In terms of specialization or focus, rather than simply duplicating efforts, we do two things at McMaster, which in some sense, I think, represent efforts that may not be ubiquitous, but are at least central to many of the major research universities.

Finance committee  The money is extremely well spent, in our view. We have almost 70 Canada research chairs. Those chairs, plus the new chairs in international research excellence and the commercialization of research, are extremely effective in helping us support our areas of focus and in attracting to Canada scholars of international distinction, who help build Canada's reputation for excellence, and will contribute ultimately to the commercialization agenda.

Finance committee  Well, that is one way in which the federal government can, in effect, provide a transfer direct to the institutions that need the resources, but I would be foolhardy if I were to say that McMaster would raise its fees by exactly the amount of any additional federal transfer to students.

Finance committee  If we may, both of us will respond to this question. In terms of the bigger picture, a couple of years ago we had a group develop a report on commercialization at the university, because we see that one of the major challenges is promoting a commercial culture within the university that sees the importance of taking applied research, those next steps to the innovation process and technology transfer process, to helping to create wealth.

Finance committee  Well, Mr. McCallum, I believe it's really important to get student aid right, and I think putting the money directly into the hands of students is an effective way to promote efficiency in the student aid program. On the other question, there is a consummate need for us to get more resources from all levels of government directly into the universities to enhance the quality agenda.

Finance committee  Thank you, Mr. Rajotte, and thank you for the invitation to be with you this morning to share our views on the strategic role that Canada's universities can play in facilitating commerce and enabling wealth creation for Canadians. McMaster endorses the presentations you will hear from the Council of Ontario Universities and the Association of Universities and Colleges of Canada.