Public Accounts committee  In the case of a private company, they would be essentially providing us completely proprietary information that they wouldn't release to anyone, particularly to anyone who would be a competitor. We would hold that in our records because we have to undertake due diligence on the file.

Public Accounts committee  I don't want to look like I'm excusing our February 8 performance on something we committed to do by December 31, but I would use this question to provide you with some information. As we provided a considerable amount of information on each of the companies that we've supported in the program in that most recent report, we had to vet each of those releases.

Public Accounts committee  Five of the seven were implemented. The sixth was essentially the overall program highlights report for 2011-12. We published it on February 8, so we missed December 31. The last recommendation that we have to complete work on is documentation of our transfer payments policy, which isn't a specific program issue, it's updating procedure manuals, documents inside the department on how we administer all transfer payments.

Public Accounts committee  Mr. Chair, I think that when the government in 2007 introduced SADI the expectations established were that we would raise the bar in respect particularly of transparency around the program. I think that's the thread of some of the recommendations that we've agreed to in this AG report.

Public Accounts committee  It would be implicit. For example, a company could receive its contribution and be expected over the 15-year repayment period to repay 155% of their total. It turns out to be a nominal repayment to our portfolio, and it more or less equates to about a 3% interest rate. What you see right there is the incentive value in the program, because the cost of capital for most of these firms would be 12% to 15%.

Public Accounts committee  We have one firm. I wouldn't speak in too much depth regarding the commercial information. It's the nature of the relationship. We have one firm that has undertaken a restructuring since the agreement was undertaken with them. There was certainly information in the public domain about financing challenges and difficulties of some firms, but for the most part, we're dealing with going concerns.

Public Accounts committee  Thank you for the question, Mr. Chair. The due diligence that's undertaken speaks to the reason it takes us a number of months to complete the review of an application. We will undertake a significant amount of work in a number of areas. First, we look at the technology that the company is undertaking to work on, and often we will consult experts.

Public Accounts committee  The Auditor General is bound to look at the facts of what our files and documentation reflect at any given point in time to the extent that we make improvements, as we continue to do, and as we do as good administrators of our programs, for example, publishing the performance measurement strategy, which is quite comprehensive.

Public Accounts committee  In this case it's a question of having the companies undertake collaborations. In fact, now it's something we contract with them around. It's gone from an aspirational objective when we commenced the program to something where we actually ask them to make commitments contractually to execute various arrangements with colleges or universities to establish research chairs in particular disciplines, which are part of the overall research that they're interested in, to sponsor students or internships in their firms in order to ensure there's a transfer of knowledge.

Public Accounts committee  The ongoing is not to indicate that something hasn't already been done. We've achieved the first milestone, which was to have published a comprehensive report reflecting the 2011-12 fiscal year, which we did on February 8. It's available publicly on our website. The ongoing part is that every fiscal year thereafter we will do the same.

Public Accounts committee  It's definitely the case that over time in each project there will be a different set of metrics that become important. In the early part of the R and D program, essentially the metrics relate to whether the R and D is being executed as contracted in the agreement, which is not a stage at which we're seeing benefits other than there's direct employment, there's actual activity, being an activity of procurement, there's knowledge development, and so forth that's occurring at that early stage.

Public Accounts committee  Mr. Chair, I would refer back to and commend particularly to analysts of the committee to look at our performance measurement strategy, which is quite detailed in enumerating how we are undertaking to examine performance. It addresses also the facts of the challenges, in particular when you're supporting programs, mechanisms where you're trying to achieve an outcome in the commercial market where a lot of other factors come into play over and above whether or not the support for the R and D is in place.

Public Accounts committee  Mr. Chair, I'd be pleased to speak to the action plan and our progress. On the first item, in relation to monitoring and reporting requirements set on agreements being fully met and documented, in this case we have implemented an annual program benefits report, which is noted in the Auditor General's report.

Transport committee  I'll give two examples. Through the strategic aerospace and defence initiative, we support Pratt and Whitney Canada, in particular in the development of the technology that will be inserted into its engine families. Each engine iteration is seeking improvements in terms of the cost to run it, efficiency, and use of fuel.

Transport committee  Actually, it's a question of the asset class. If we're talking about technology and knowledge, the type of lending that a bank would undertake, based on some fixed assets and protection around those, is not where the gap is. Banks are involved with the SME sector to a great extent in terms of providing working capital and support for industries where there are assets.