IRAP seeks to strengthen core function of assisting Canadian SMEs in regions

Focus on the National Research Council

Recently installed DG Dr Tony Rahilly says he is committed to building a strong national office for the Industrial Research Assistance Program (IRAP), filling key vacancies in the regions and restoring $12 million in funding that recently sunset. It's an imposing set of challenges for the former director of IRAP's Ontario region, who has been acting DG since September/04. But he says he's convinced that much can be achieved within existing budget constraints.

In recent years, IRAP's budget has shrunk from approximately $150 million annually to about $125 million today, due to the sunsetting of funding from the federal regional agencies and the loss of $30 million in joint funding delivered in conjunction with the moribund Technology Partnerships Canada program (TPC). In spite of the budget shocks, IRAP maintains its cadre of 260 industrial technology assistants (ITAs).

"It's not just about the money. It's their connections and advisory services ... The real strength of IRAP is the people we have embedded in the communities," says Rahilly. "They know their local SMEs (small- and medium-sized enterprises), their local industries and I wouldn't want to lose that if I could help it."

To that end, IRAP is in negotiations with Treasury Board and Industry Canada to see whether the regional agency funding can be replaced. As for the IRAP-TPC funding, it's unclear what will happen since the program officially closed down March 31st and the Conservative government has been mute on its future. The program was never fully tapped in any one year, leaving a considerable amount left over that remained uncommitted. Recently, NRC successfully negotiated with Treasury Board to obtain surplus funds and move it into its own budget. The funds were used to address a funding shortfall related to Canada's international obligations in the field of astronomy.

A decision on TPC will likely be made as part of the S&T review currently underway, which will presumably include decisions on federal business assistance programs. IRAP still has access to approximately $18 million from the joint program with TPC, stemming from multi-year contracts signed with firms before the TPC moratorium.

In addition to its discussions with TB, IRAP is also preparing a proposal that will go forward as part of an NRC proposal for additional funding. Rahilly won't say what the IRAP component is, but he says he isn't limiting himself to the NRC in the quest for additional funding. IRAP has a unique approach to assisting SMEs in the commercialization of technologies that naturally extends across departmental boundaries.

"If I see any other budget process moving along, I'll see if there's a role we can play," he says. "We'll certainly look for every opportunity. We were with Industry Canada when they were looking at automotive and at International Trade Canada when they were looking at the whole approach to Canada internationally. We usually try and make sure we at least have a foot in the door and often we get a line item on those as well ... In becoming a sustainable organization, we're always looking for ways to bring funds into our mix. There are opportunities there."

While budgetary negotiations continue on several fronts, Rahilly is devoting much of his energy towards improving IRAP's internal processes, accountability measures and assistance for ITAs in the regions. Key to strengthening the national office function is filling senior positions with permanent appointments. The first was made the same day Rahilly's position was made permanent (July 4th) with the appointment of Susan Dell as executive director of the national office (R$, July 28/06), with two or three others slated to be filled in the near future. Rahilly will also move on three of the five regional directors' positions that are currently occupied by those in an acting capacity. The directors for IRAP Ontario and IRAP West will likely be filled first, followed by IRAP BC later this fall.

Once those positions are dealt with, Rahilly says the will work on ensuring that policy decisions and materials are effectively delivered into the regions.

"Part of this is communications. I also want to take a more active outreach role to ensure that IRAP has a national presence and image," says Rahilly. "At the end of the day I want an organization that's impactful, relevant and sustainable."

RULES HAVE CHANGED

IRAP is still regarded as possibly the most respected business assistance program in the federal arsenal. But in recent years some SMEs have complained of an increasing bureaucratization. Rahilly says that, while there may be ways to help firms deal with increased bureaucracy, it's here to stay.

"Anywhere you go the need for accountability from government is on the increase. Even for business the reporting requirements are huge," he says. "Could we be faster in our marketplace? I think we could. Part of it is how we implement rules and part is how we do training ... Some bureaucracy comes from a lack of understanding of what the rules are and how they're applied."

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