S&T funding hangs in balance as political uncertainty delays Budget measures

A sense of foreboding is permeating the S&T community as Ottawa’s political crisis threatens to delay or derail dozens of initiatives from large-scale genomics projects and granting agency increases to market-oriented R&D in Atlantic Canada. Uncertainty surrounding the passage of Budget appropriation legislation and the fate of the current Liberal government have stalled funding renewal for many programs including those that received financing from the government’s year-end surplus (see chart).

While there’s no firm evidence that a Conservative government would rescind existing programs or proposed funding measures, any significant delays created by an early election could create havoc and has the potential to unravel research teams that have taken years to assemble.

GENOME CANADA

The status of each effected program or funding initiative varies but the program with the most money at stake and the least degree of flexibility is Genome Canada. It took more than one year for the organization to receive the $60 million in funding contained in Budget 2004.

The latest Budget provides Genome Canada $165 million in year-end funding to hold another major competition. To avoid a lapse in current and new research activity, Genome Canada started the competition last summer, attracting 93 proposals. The evaluation process is well advanced and final decisions are expected by July.

“We have broad political support but if the political environment continues to be unstable we could be in a serious situation. Most of our activity is turning over within the year and there’s not much room to maneuver,” says Marc Lepage, Genome Canada’s executive VP corporate development. “We’ve built cutting-edge, leading teams with multiple skill sets and it takes time to build them … We need to provide coverage and comfort to avoid them leaving.”

A similar situation is unfolding at Precarn Inc, a long-standing applied research network supporting consortia of researchers in the areas of robotics and intelligent systems. Year-end funding of $20 million was contained in the Budget – far less than the $50 million over five years the organization received between 2000 and 2005. The reduced funding level combined with the spectre of delays owing to political uncertainty has prompted the early departure of Precarn president and CEO Dr Anthony Eyton and Graham Taylor, its director of business development. And while it is going ahead with a new competition, Eyton acknowledges that Precarn must scale back the scope of its support for at least two years. Staffing levels are down to nine, from a high of 17 in FY01-02.

“Even the $20 million is in some jeopardy now. If there is an election, the next government would have to look at each item in the Budget. We know all the parties well so we’ve got our bases covered,” says Eyton. “I’m confident a new Budget bill would include Precarn, but the risk is there would be another delay so we would have to delay approving new projects.”

Eyton is establishing his own trade consulting practice but will continue his association with Precarn, chairing a sub-committee to put together a new strategic business plan.

“We need to revisit the (2004-2009) business plan to make it fit to a $20-million budget,” he says. “We also hope the government will top up our funding in the next two or three years. We have a good model for the commercialization of leading-edge R&D in the areas of information and communication technologies and enabling technologies. Top up funding would allow for this expansion.”

BUREAUCRACY ROLLS ON

While the politicians jockey for power, the federal bureaucracy is moving the S&T proposals forward, seeking Treasury Board approvals for the release of funding. Even initiatives tied to Industry Canada’s commercialization strategy are being developed, including the two pilot funds for universities and federal laboratories. The funds were announced in Budget 2004 but reprofiled for the current FY after the commercialization strategy was delayed.

“All Budget initiatives are well progressed and subject to Parliamentary approval and appropriations and that includes the commercialization pilot funds ... We don’t know what will happen on the political landscape,” says one government official. “We’ve got a real head up steam up.”

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