Main estimates contain mixed news for S&T-related departments and agencies

IRAP pushes up NRC budget

The National Research Council (NRC) will receive a significant boost in grants and contributions from the federal government in FY13-14 but the increase masks cuts to several of its key program areas. The NRC is one of several federal S&T organizations that will see their funding decrease next year, most of which also experienced funding cuts in FY12-13.

The data were contained in the main estimates which were tabled February 25th by Treasury Board president Tony Clement and show a $4.9-billion decline in planned voted expenditures for next year (see chart on page 2).

The estimates show that NRC is projected to receive $820 million next year. But it includes $182.2 million in statutory forecasts not requiring a parliamentary vote — $91.4 million for the Industrial Research Assistance Program (IRAP) and $66.5 million to support the re-focusing of the NRC "into a unified, industry-driven organization to effectively address the (government's) innovation priorities". NRC funding requiring the authority of Parliament is $637.8 million in FY13-14, compared to $679.8 million in FY12-13.

From the perspective of strategic outcomes and programs, IRAP, internal services and energy and environmental services will see their budgets increase. All other areas will receive less in FY13-14 than they did in FY11-12 prior to the agency's transformation into a research technology organization (RTO) (see chart). Under its new strategic plan, external revenues — primarily from industry — are expected to grow substantially.

The department to take the largest hit in dollars terms is National Defence, which will see a decrease in its "net authority" by 9% or $1.8 billion. Its science and technology expenditures are also being reduced, from $399.8 million in FY11-12 to $278.3 million in FY13-14, a decrease of 30.4% over two years.

Industry Canada

The Main Estimates show that Industry Canada's funding will decline year over year by $145 million in FY13-14. The bulk of the reduction is due to the sunset of three grants and contribution programs, the largest being Canada Foundation for Innovation ($82 million) which will now be delivered as a contribution program Also being reduced are the Automotive Innovation Fund ($64.1 million) and Genome Canada ($17.5 million) "to align payments to the approved cash flow requirements of recipients.

From a strategic outcomes and programs perspective, Industry Canada's support for industrial R&D financing will experience a $71.3 million decrease in FY13-14 to $332.5 million, back to the level it received in FY11-12. Science, technology and innovation capacity funding will see an biannual decrease of $140 million or 31%. Information and Communications Technologies (ICT) research and innovation funding will decline to $34.8 million in FY13-14, down from $36.6 million in FY12-13 and $44.9 million in FY11-12.

The budgets of the three granting councils are largely stagnant and will only experience minor reductions in FY13-14, ranging from 0.1% for natural sciences and engineering research and 1.1% for health research to 0.8 for the social sciences and humanities.

The four regional development agencies for Quebec and Western Canada will see their funding reduced somewhat while those responsible for western Canada and southern Ontario will receive modest increases.

Not all S&T-related departments and agencies are anticipating cuts. The Canadian Space Agency (CSA), Human Resources and Skills Development and Public Works and Government Services will all receive significant funding increases.

The CSA's FY13-14 budget jumps 24.4%% to $488.7 million, primarily die to $112.5 million provided for the RADARSAT Constellation Mission (R$, January 21/13) as well as $34 million related to the forecasted cash flow requirements for various projects and initiatives.

The main estimates do not include any increases or reductions that may be contained in the forthcoming federal Budget.

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