Post-secondary sector taking cautious approach to pre-Budget submissions

Fiscal restraint, R&D review panel cited

A cost-cutting strategic operating review and the pending report from the federal R&D review panel are producing a chill in the pre-Budget submissions to government, with fewer organizations and individuals proposing significant new spending for R&D and innovation. But in the post-secondary sector, the largest association representing Canada's universities is proposing increases in funding for the research granting councils, a new funding mechanism to integrate graduate students into the workforce and a "significant global research fund" to support international collaboration in emerging priority areas.

In a June 27 press release, the committee requested that submissions focus on four primary areas: how to achieve a sustained economic recovery in Canada; how to create quality sustainable jobs; how to ensure relatively low rates of taxation; and, how to achieve a balanced budget. Research was not mentioned in the letter.

Paul Davidson, president of the The Association of Universities and Colleges of Canada (AUCC) says the fact that research isn't explicitly mentioned in the committee's letter of direction doesn't preclude recommending new research spending, despite the shaky state of the economy and the government's efforts to balance the budget.

"The (AUCC) recommendations address two of the four guidelines bang on. Universities are central to sustaining a high quality of life. The committee does not preclude research," says Davidson. "We need to invest in the fundamental pieces to sustain the recovery … The government understands that post-secondary as a foundation for prosperity."

The AUCC will release the cost of its three recommendations in November in a follow-up submission to Finance. It is recommending that the federal government:

* continue to invest in the three granting councils and the Canada Foundation for Innovation;

* develop funding mechanisms "that integrate master's and PhD students and graduates into the labour market"; and,

* create a "significant" research fund to support international research collaborations by both student and faculty "in thematic and geographic priorities as they emerge".

polytechnics canada

For Polytechnics Canada, the dilemma of whether to stray beyond the dictates of the Finance committee were compounded by its CEO's membership on the Expert Review Panel on Research and Development, which is tasked with examining federal R&D support for private sector innovation.

The Panel, which will release its report on or about October 14th, is likely to recommend major changes to the way in which the government supports and encourages private sector R&D spending, including initiatives which almost certainly involve the post-secondary sector.

"As I'm on the R&D panel, it's not appropriate to make R&D proposals on behalf of Polytechnics Canada," says Polytechnics Canada CEO Nobina Robinson. "I have some ideas once the panel is done and its report is released."

Robinson says her position on the expert panel wasn't the only reason Polytechnics Canada refrained from including research funding in its pre-Budget submission.

"There were four areas to be addressed so we can only speak to jobs … We tailored our submission to the receptivity of the committee," says Robinson. "We're building innovation skills and talent that can do the R&D and commercialization. There are opportunities to do better with SMEs (small- and medium-sized enterprises) and PhDs are only part of the answer. We need, at this point, all kinds of talent including technicians and technologists."

Polytechnics Canada's three recommendations to the Finance committee all relate to jobs and skills enhancement. More specifically, the association is advocating for the government to:

* establish a research mentorship pilot program for foreign-trained professionals to hold three-year positions at colleges and polytechnics ($6 million over three years);

* create a pilot entrepreneur-in-residence program to "provide guidance and mentoring to students, early-stage companies and clients of the colleges' applied research offices" ($7 million over five years; and,

* make the first $3,000 of apprenticeship incentive and completion grants tax exempt — in line with university scholarships and bursaries ($27 million in foregone tax revenue annually).

Robinson says if Polytechnics Canada's recommendations are accepted and implemented, they will help redress what she sees as an imbalance in research funding in Canada in favour of universities.

"The whole piece is built on Industry Canada and the granting councils. It needs a whole-of-government approach," she says. "HRSDC (Human Resources and Skills Development Canada) has a lot of programs so we should utilize them."

ACCC submission

The submission by Association of Canadian Community Colleges (ACCC) sticks relatively close to the Finance committee's directives, focusing on initiatives that would expand the scope of skills development. It calls for an action plan to increase the number of people with advanced skills, preceded by a national dialogue to engage all players in the education system.

The ACCC recommends establishing a separate post-secondary transfer to the provinces when the existing Canada Social Transfer expires in 2014. While the CST for FY11-12 includes $3.5 billion for post-secondary education (rising to $3.8 billion in FY 13-14), the ACCC's submission notes that "it is not possible to determine if these funds are used for their intended purpose".

The ACCC also reiterates its long-standing assertion that 5% of federal R&D investment be directed towards applied research partnerships between colleges and smaller firms. While the association notes that the government has already made several key investments in college-based R&D, it argues that more must be done to exploit the strengths residing in colleges.

"Current federal research policy and funding must be re-focused to encourage incremental innovation ... Federal allocations for college applied research have made a difference but represent just 1.25 per cent of the $2.9 billion in federal research funding allocated annually to the higher education sector," states the submission. "Further federal investment in applied research at colleges and institutes would substantially increase the capacity of SMEs to raise productivity through innovation."

The ACCC's final recommendation is for improving the educational outcomes of Aboriginal youth. While the recommendation is vague, it cites a study by the Centre for the Study of Living Standards that raising the education of Aboriginal Canadians would have a major impact on the economy. By providing post-secondary education for the 400,000 Aboriginal youth set to enter the workforce in the next decade, ACCC says the GDP would be boosted by $36.5 billion, tax revenue would increase by $3.5 billion and federal government expenditures would decline by $14.2 billion.

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