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In Depth

Federal Budget 2008

A targeted approach to R&D spending

February 26, 2008

The federal government has set aside over $1.2 billion research spending, but much of this is spread out over the next five years and scientists will have to perform research in specific industries or areas to see any of it.

On the primary front, Ottawa is proposing an additional $440 million over the next three years, though most researchers will notice no change in their funding levels.

That is because the federal money narrowly targets certain topics and institutions including:

  • Genome Canada, which is getting a one-time sum of $140 million this year to launch a new competition in the priority area of genetic research, support six regional genome centres and help Canadian researchers participate in an international genomics project.
  • The Canadian Light Source, the synchrotron facility in Saskatoon that will receive $10 million over two years. Last week, an editorial in the international scientific journal Nature slammed Ottawa for its science policies and specifically mentioned the struggles of the synchrotron, which has relied on regular funding of $16.5 million annually.

As a result of this budget, Ottawa is providing $140 million in new funding in 2007-08 and $150 million in each of the following two years.

In each of the next three years, university researchers will be able to share:

  • $34 million if they study the automotive, manufacturing, forestry or fishing industries.
  • $34 million if they study health priorities particularly as they relate to northern communities, environmental conditions, and food and drug safety.
  • $12 million if they study social and economic development in Canada's North.

$300 million for nuclear energy

In addition to the primary research Ottawa is also doling out research money in three areas of environmental spending.

That includes $300 million to support nuclear energy. It is to be used for the development of what is called the Advanced CANDU reactor and to maintain "the safe, reliable operations of the Chalk River Laboratories." Updating that aging reactor has been estimated to cost upwards of $600 million over several years.

This announcement follows months of controversy over the Chalk River facility, specifically the government's controversial decision to restart the reactor following a shutdown for safety upgrades and against the recommendation of the Canadian Nuclear Safety Commission. The reactor produces most of the world's medical isotopes, which are used in diagnostic scans for cardiac diseases and cancers.

A pilot project in Nova Scotia to attempt to capture and store carbon dioxide from a coal-fired power plant will receive $250 million, while research into more fuel efficient vehicles will receive $250 million over five years and research on biofuels emissions will get $10 million.

Tax breaks for small private companies

Industrial research by small and medium-sized businesses also received a boost through an expansion of the scientific research and experimental development tax credit.

The tax credit of 35 per cent will now be available to eligible private companies on their first $3 million in spending, up from $2 million under previous rules. And companies will now be eligible for at least part of the tax credit if they have a taxable income of $700,000 or less, and taxable capital of $50 million or less instead of the current $15 million or less.

Aside from new research funds, the government is also setting aside a few new pools of money to attract and support the people who perform the research including:

  • $21 million over two years to establish up to 20 Canada Global Excellence Research Chairs for researchers whose studies focus on the environment, natural resources and energy, health, or information and communication technologies.
  • A $20-million endowment for the Gairdner International Awards to mark the 50th anniversary of the prestigious medical science awards in 2008.
  • $25 million over two years to establish a new Canada Graduate Scholarship award for top Canadian and international doctoral students.
  • $3 million over two years to establish a new international-study stipend for Canada Graduate Scholarship recipients who wish to study abroad.

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