May 13, 2002
Research and Development
Private Members' Statements
R. Lee: I'm pleased to have the honour to rise in the House today to speak on a very important topic. Broadly, this topic is the need to make British Columbia a destination for research and development. Most specifically, I will highlight some of the exciting research projects and individuals that are helping lay the foundations of the future of B.C.'s research and development sector.
British Columbia has traditionally had a resource-based economy. Over the past century revenue from exporting our natural resources has been sufficient for British Columbians to enjoy one of the highest standards of living in the world. But as we enter a new century, the resource sector has become more volatile, as evidenced in the difficulties we are encountering in the forestry, fishing and mining sectors.
We must adapt to the new economy and put added emphasis on searching for new sources of revenue beyond the traditional resource sector. In order to diversify our economy and attract investment, British Columbia must become a cradle for research and innovation.
The United States is considered the most innovative country in the world. They are implementing many programs that will help expand their research base. Key initiatives include funding basic research in universities, ensuring graduate-level educational opportunities for qualified students and funding federal government laboratories. R and D investments by the U.S. government have increased in recent years. They have committed to increased funding for infrastructures in schools. They have expanded college aid, providing training programs in the workplace and assisting communities in need.
Canada's federal, provincial and private sector investments in R and D in 2001 totalled $21 billion. Even though this amount increased by 20 percent from 1999, Canada ranks only fourteenth in the OECD in gross expenditures on R and D relative to GDP. Amongst G-7 countries, Canada's expenditure on research and development as a percentage of gross national product is the second lowest.
Worse yet, within Canada, British Columbia consistently underperforms compared to most other provinces. R and D as a percentage of GDP is one of the 13 performance indicators used by the B.C. Progress Board to measure the province's economy and competitive position. It identifies that spending on R and D is a key factor in innovation and creation of new wealth, yet in 1998 only $1.01 billion was expended in B.C. compared to $1.1 billion in Alberta, $4.1 billion in Quebec and $8 billion in Ontario.
British Columbia lags behind the more competitive provinces because with the friendlier business climates in these provinces, companies are more willing to invest in research and development. We must increase investment in R and D in order to generate the knowledge that fuels innovation. Therefore, it is of utmost importance to ensure that British Columbia has a business climate in which companies are not afraid to invest.
Thankfully, our government has done many things to help stimulate investment in our province. For example, the corporate capital tax has been cut in half. In December the tax will be totally eliminated. Corporate income tax has been cut from 16.5 percent to 13.5 percent. To encourage investment by small businesses, the small business tax threshold has been raised from $200,000 to $300,000. We cannot forget the importance of the 25 percent personal income tax cut the government implemented when coming to office. On the first $60,000 of income British Columbians pay the lowest tax rate compared to any jurisdictions in the country.
When the Minister of Forests announced a $20 million marketing campaign at the end of March, $8 million was set aside for developing new products. Last week the federal government followed suit, promising $45 million for research into new uses for Canadian lumber.
Recently the government has announced the leading-edge endowment fund which will help keep and attract B.C.'s leading researchers. All these initiatives help create the appropriate climate for investment, drawing much-needed innovators to our province.
Historically, Canada has been a country of innovators and inventors. Just think about some of the Canadian inventions that have forever altered the way we live our lives. Canadian ingenuity has contributed some of the world's greatest inventions - from pablum, painting rollers and pacemakers to instant potato flakes, IMAX and insulin, not to mention the Canadarm, the BlackBerry and the electron microscope. These are just some of the many examples of Canadian innovation.
I believe B.C. has the greatest potential of any province in Canada, and we can be at the cutting edge of research and development in Canada and the world.
I would like to thank the House for its time and eagerly await the Minister of Advanced Education.
Hon. S. Bond: I very much welcome the opportunity to respond to the statement from the member for Burnaby North. I agree with you; research and innovation is one of the keys to our province's future prosperity. In this increasingly global environment it's absolutely critical that we diversify our traditional industries and take advantage of B.C.'s intellectual capacity so that our province is positioned to excel in the knowledge-based economy.
Education is one of our government's top priorities, and I can honestly tell you that I am very proud to be a member of a government where, in particular, the Premier of the province recognizes the importance of education and, in particular, a post-secondary education and the significance of research and how it links to economic prosperity. It is important that we create a favourable climate, and investing in research is an absolutely central component of our government's agenda.
So what do we want to do in terms of research in this province? First of all, we want to look at its potential for economic development, and we want to make sure that B.C. is a global leader in research and innovation. Most importantly, we want to attract the best and the brightest minds from around the world so that we can improve the quality of life for people who live not just in British Columbia but in Canada and, in fact, the world.
We believe that we can discover new therapies, applications, conservation methods and economic opportunities in the areas of health, technology, oil and gas, forestry, environment, and these are just a few of the sectors that we believe can garner tremendous benefit for British Columbians.
I was incredibly proud and so glad that the member mentioned the fact that we recently announced the government's $45 million leading-edge endowment fund. That was part of the new-era commitment that we made to establish 20 permanent B.C. leadership chairs for research across the province of British Columbia.
The leadership endowment fund is in fact based on a cost-sharing partnership with the private sector, and it will establish chairs in the areas of medical, social, environmental and technological research. Each chair will receive up to $2.5 million from the government and will partner for the other up to $2.25 million with the private sector. Institutions will be responsible for securing the private sector contribution, but it is a great opportunity for community members and businesses from across the province or even around the world to invest in British Columbia and to contribute to cutting-edge research initiatives that have special importance or relevance to them.
We believe that these chairs are going to make a difference, and I have a perfect example of that. It was very, very exciting to announce the first B.C. leadership chair, and it was awarded to the University of British Columbia in partnership with the Rick Hansen Institute for a joint chair in spinal cord research. Government will provide $2.25 million for the first chair, and that will be matched by the Rick Hansen Man in Motion Foundation. The chair will support the director of the recently established international spinal cord research centre, known as ICORD. It will held by Dr. John Steeves, who is an absolutely accomplished researcher. He is the principal investigator for ICORD and has been director of the cord research group at UBC since 1995. He is going to conduct spinal cord research, and he leads the evolution and implementation of research strategies both nationally and internationally.
You may have heard just recently that already, as a result of work being done over the last ten years or so or longer with cells that were once thought not able to be revived, there's now hope that research done in the next number of years will actually bring new hope to those people who have had spinal cord injury. I am so glad that as government we have decided to partner to look at research, and we will make a difference. We will leave a legacy in this province of creating an improved world for many people in British Columbia.
We recognize the importance of research. We are working very hard to look at the dollars needed to leverage federal funding. As the member points out, the federal government often responds in kind as we provide dollars, so we're working very hard at looking at our agenda. I am really pleased today to stand in the House to talk about the significant investments that our government has made and will continue to make in the area of research and innovation. I want to thank the member for Burnaby North for raising this most important topic. I know he has continued to be an advocate and has certainly provided help to me as the minister in understanding the important role that research plays in British Columbia.
R. Lee: I would like to thank the minister for her very informative comments.
In British Columbia we have many innovative people and businesses. For example, TRIUMF, Canada's national lab for particle and nuclear physics, is a world leader in particle research. It's a member of the international subatomic physics community and strives to play an important role in a global quest for a clear understanding of subatomic particles and fundamental forces that determine every aspect of our universe. I had the honour to work in this facility for 22 years.
In Burnaby Ballard Power is developing environmentally friendly fuel cells that will change the way we think about powering vehicles and appliances. Electronic Arts, one of the world's most innovative software companies, has a $60 million facility located in Burnaby. Chromos Molecular Systems is doing research into chromosomes and has the potential of alleviating the pain of people who suffer from chronic illnesses. Palcan is a company in Burnaby that creates hydrogen fuel cells for bikes and motorcycles. BCIT has Canada's first independent Internet research centre in Burnaby.
My own riding of Burnaby North is one of B.C.'s centres of innovation. My constituent Albert Leung, of the school of engineering science in Simon Fraser University, has developed an accelerometer that measures the speed, rate and direction of motion of an object. In the next few years the market for this device will reach $1.5 billion. In 2001 he won a Science Council of B.C. award, as well as the national Manning award for innovation.
Another constituent, Peter Borwein, and his brother Jonathan, both mathematicians at SFU, have helped secure a $4.7 million CFI grant towards a mathematical and computer science research facility at Simon Fraser.
The IBM centre for e-business innovations is in Burnaby North. The only other similar centre in Canada is located in Toronto.
The Down Syndrome Research Foundation and Resource Centre opened its doors in Burnaby North last month. It is a shining example of innovation within British Columbia. It's the only facility of its type in the world to combine the research facility for leading researchers, educators and health professionals that specialize in Down syndrome and provide a centre for the Down syndrome community. In conjunction with researchers from SFU, UBC and University of Victoria, scientists are able to explore previously unexplored aspects of Down syndrome. Through their work, these dedicated British Columbians will be able to better the lives of people with Down syndrome. Research and development can and will play an important role in the future of B.C. Nowhere else in Canada is the vast potential of research and development so great as in our province.
