Editorial - 21-6

For a government that prides itself on promoting openness, transparency and accountability, the cancellation of a key industry advisory committee for Canada's largest R&D program is bewildering (see lead story). Since the late 1990s, the scientific research and experimental development (SR&ED) tax credit program has benefited from the input of high-level R&D performers and tax practitioners.

The industry input provided external oversight to a program that has had its fair share of complaints and controversies. That was until last year, when the government announced the cancellation — in the name of program expenditure reduction — of all committees advising the Canada Revenue Agency (CRA).

The logic, of course, is patently absurd. The SR&ED Partnership Committee cost a mere $60,000 in direct annual costs to administer. In return, CRA received critical feedback on $3.3 billion in annual expenditures geared towards increasing private sector R&D, productivity and competitiveness. Instead of working to eliminate barriers between government and industry, this government is reinforcing the silos. So much for openness, transparency and accountability.

Internal documents reveal that all was not well between the CRA and the committee, with far too much time devoted to debate over the role of the committee and its reach. Why Ottawa chose not to con-tinue the dialogue towards resolving outstanding differences remains a mystery. Let's hope that the government's pledge to review SR&ED will lead to reinstating industry participation in a way that's meaningful and mutually respectful.