Policy Declaration provides insight to Tory stance on S&T, R&D and innovation

The new Conservative government's election platform was virtually silent on matters pertaining to R&D, S&T and innovation, but its March 2005 policy platform provides some vague insight as to how it will approach the public role in providing assistance in these areas. Not surprisingly, the Tories' hands-off approach to industrial development extends to S&T and R&D, with few references to new or existing fiscal instruments beyond the granting councils and the scientific research and experimental development (SR&ED) tax credit.

According to its year-old Policy Declaration, the Conservatives pledge to "uphold innovation, technology and research through the granting councils" and "continue to fund the indirect costs of research with particular attention to small universities".

Programs that provide assistance to business are viewed as subsidies and the Conservatives vow to "not only reduce but eventually to eliminate subsidies to for-profit businesses". The platform states that it will focus on stimulating economic growth by "facilitating competition, improving productivity, streamlining regulation and fostering innovation".

The appointment of Maxime Bernier (Beauce - PQ) as Industry minister coincides with this laissez-faire approach. Bernier is a first-time politician who was previously a VP at Standard Life of Canada and a member of the Montreal Economic Institute, a think tank compared to the Fraser Institute.

The survival of programs such as the Industrial Research Assistance Program and the Transformative Technologies Program (successor to Technology Partnerships Canada) appears likely while the Conservatives run a minority government. That may change if they win a majority in the next election.

The pledge to eliminate so-called business subsidies does not appear to extend to the regional development agencies. It recognizes their importance to "any strategy to assist the regions of Canada to meet the opportunities of a new global economy", with the caveat that they "must be de-politicized and focused on attracting new private sector investments".

The SR&ED tax credit program is the Conservatives' vehicle of choice for assisting business. Both the policy and election platforms state a desire to expand its scope. But there are no details beyond a commitment to "work with stakeholders in all fields of research and various industry sectors".

CHIEF SCIENTIST PROPOSED

Big changes are planned for providing scientific advice to government. The Conservative Policy Declaration says a chief scientist will be appointed, reporting directly to Parliament. Modelled on the UK's Parliamentary Office of S&T, the chief scientist would provide "independent and balanced analysis of public policy issues related to S&T". It's difficult to see how such a position could co-exist with the current National Science Advisor's office, which reports to the prime minister.

The Tories also pledge to create a "single authority or single window" for reviewing big science projects, eliminating the need to secure funding from a "myriad of departments and agencies".

Other S&T-related policies of note include:

* encouraging R&D for new health care technologies, "in part through the provision of an adequate level of federal funding;

* a process to restore time lost on 20-year patent protection due to delays in government approvals;

* faster processing of drug approvals;

* relaxing foreign ownership rules for telecommunications, broadcast distribution and airline industries;

* increasing the knowledge base for fisheries; and,

* reduction of international trade barriers and tariffs and elimination of "trade-distorting government export subsidies".

R$