University presidents make the case for maintaining the budgets of granting councils

AUCC calls for modest increase

More than 25 university presidents converged on Ottawa this week for a Day on the Hill to press government officials on the need to increase funding for granting councils in the next Budget, despite the widespread expectation of major cuts throughout government. The presidents will be pressing recommendations contained in the pre-Budget submission of the Association of Universities and Colleges of Canada (AUCC) which requests a $40-million boost to the base budgets of the councils — an increase of about 1.5%.

The AUCC submission also calls for a hike in funding for institutional (formerly indirect) costs of research to 40% but only for "new direct cost dollars", as well as money for thousands of new internships directed towards Aboriginal and Brazilian students and $6 million to build on research links established with universities in India.

"This is an opportunity to explain some of our messages that can't be reinforced too often," says Dr Tom Traves, president of Dalhousie Univ. "The government is dealing with fiscal problems and austerity budgets are likely to be a fixture for a while. We need to ensure that the excellent support university research has received in the past doesn't get unwound."

The AUCC's 1.5% ask for the granting councils is slightly higher than the 1% hike proposed by the U15 — the group of 15 of Canada's largest research-intensive universities that succeeded the G13 in February/11. Traves says the percentage amount is intentionally low and that even a zero increase would represent a victory if the granting councils were an exception to across-the-board cuts.

"A one percent increase or $27 million would send a really supportive signal to the research community. Zero would also be positive," says Traves. "I understand that the government has not made final decisions on the Budget. They are still several weeks away and we want to save the granting councils from cuts."

In addition to university presidents, the Ottawa delegation included a number of industry representatives and associations as well as students to ensure that there are a "wide range of voices at the table", says AUCC president Paul Davidson. "This will be an austerity Budget with the government's strategic and operating review preparing for tough choices in terms of finding cost savings and directing those savings to areas of strategic investment … This government has an opportunity to signal continued investments in R&D (and) maintain a trajectory of investment."

Davidson says the government's tight fiscal situation is responsible for the AUCC's decision to limit its recommendation for institutional support to 40% of direct costs on new spending only. He acknow-ledges that "Canada is far behind its competitors" when it comes to supporting the indirect costs of research but argues that 40% on incremental funding will "help get to 40% overall" over a longer period of time.

Recent statements by prime minister Stephen Harper have sent encouraging signals that federal research support may escape the worst of the impending cuts, which are likely to be between 5% and 10%. In a letter to Cabinet caucus and a few days later in Davos Switzerland, Harper stated the importance of investing in research, although he also noted that Canada is receiving "less than optimal results" for its investments in innovation.

redirect SR&ED savings

The likely focus of any changes in R&D support is the scientific research and experimental development (SR&ED) tax incentive program for business, as recommended by the report by the Panel on Federal Support to R&D (R$, October 17/11).

The AUCC has anticipated the government's adoption of the recommendation and is proposing that a new internship program could be funded from the savings that a narrowing of SR&ED eligibility would generate.

"The internships could be achieved if SRED is refocused. There is a gap in the research enterprise between graduate students and the private sector," says Davidson.

Traves notes that, while AUCC has "no stake in the current arrangements", new money for internships would be beneficial. "The federal government has moved slowly and steadily to support universities and attract students to address a talent shortage. There's a global hunt for talent internationally."

The Brazilian government recently announced funding to help support 75,000 scholarships to allow its university students to study abroad. The Brazilian private sector subsequently contributed funds to allow for another 25,000 scholarships. As the scholarships are not fully funded, the US, UK have provided matching funds and other nations are preparing to follow suit.

"There's an opportunity for us to get in. There's a line-up," says Davidson, pointing to the AUCC's recommendation to "seize this opportunity to partner with Brazil by creating scholarships, valued at $10,000, to attract 2,000 Brazilian students to Canada each year for the next three years".

The AUCC recently held a three-day workshop focused on Brazil and a delegation of more than 35 university presidents will travel to Brazil this spring.

"It's already highly competitive. We need to put funding on the table to make Canada an attractive option," says Traves. "University presidents are going to Brazil at the end of April and the governor general will lead the mission. We did the same thing for India a year ago and there's been significant growth in research between the two countries."

boost knowledge translation

By maintaining the budgets of the granting councils and adding thousands of new targeted scholarships and internships, the AUCC contends that Canada's university system will be far better equipped to assist in the translation of discoveries into social and economic benefits. Traves says the emphasis on business relevance is an important message for the university community to deliver to government.

"Universities must continue to do investigator-driven, basic research. To do that it needs strong programs of support for traditional patterns of research in universities," he says. "There are also possibilities hidden in ideas and people's laboratories. We need to pull them out and match them with business needs — to take advantage of all that brain power. But it can't detract from the traditional mission."

In addition to the granting councils, the AUCC is urging continued support for other organizations, specifically the Canada Foundation for Innovation and CANARIE — both of which require new funding (CFI) or are up for renewal (CANARIE).

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