BC government’s business subsidy review axes three key S&T programs

The first shoe has dropped from the British Columbia government’s business subsidy review, with three science and technology programs eliminated and at least two more facing the axe. Buried beneath the higher profile job cuts to the civil service, of the first phase of the subsidy review guts Technology BC (Tech BC), the core support mechanism delivered by the Science Council of British Columbia (SCBC). It also does away with two programs funded by the province but delivered by the National Research Council’s Industrial Research Assistance Program (IRAP).

Hanging in the balance in the next phase of the review is the fate of support to university and college industry liaison and technology transfer offices, and the IRA- administered Market Assistance Program for Research and Technology used by post-secondary institutions before investing their own funds in promising technologies. Also under the gun are regional S&T activities that mirror SCBC activity at the local level, not to mention the Technical University of British Columbia and distance education delivered through the Open Learning Agency. The final phase of the review will examine support to not-for-profit organizations and associations such as BC Biotech and the New Media Association.

Tech BC had a FY01-02 Budget of $3.2 million delivered through the Ministry of Competition, Science and Enterprise (MCSE), but disbursements were frozen shortly after last Spring’s landslide election of the provincial Liberal government. With its elimination, SCBC disburses less than $2 million annually, a mere fraction of what it once provided to the S&T community.

The intention to review all business subsidies was announced in August and was designed to eliminate all support that was determined to provide economic advantage (benefit provided at less than commercial terms) and selectivity (discretion in selecting which firms will receive benefit). It’s becoming evident that the definitions are being interpreted broadly, killing off SCBC’s flagship program which leveraged nearly $5 million in industry support for early stage R&D and university spin-offs.

SCBC also delivered $15 million in research assistance associated with the Forestry Renewal BC program (now to be called Forest Investment Account) but it is also winding down and will end March 31. A replacement program has not been announced.

“We’ve been going from one cutback to another for the past three or four years and there’s a sense that it’s time for some good S&T news,” says a senior member of the provincial S&T community. “We’re hoping for an indication in the Budget next month (February 19).”

MCSE also funded the IRAP-delivered First Job in Science and Technology program ($1.5 million) and Technology Assistance Program ($1.1 million).

Ironically, the S&T component of the provincial government emerged relatively unscathed from the massive cuts to the bureaucracy, which eliminated 11,700 jobs. Both the MCSE’s Science, Technology and Communications division and the Strategic Industries Branch escaped with a handful of job losses.

WHAT NOW FOR S&T?

The big question for BC S&T is what the government will create to fill the gaping holes left by the elimination of business subsidies. Prior to the election, the Liberal administration was promoting Leadership Chairs program of 20 research chairs jointly funded by government and industry There is also speculation that support for university ILO and tech transfer offices will be replaced by assistance that is more generic and pre-competitive, allowing post-secondary institutions to continue their collaboration with the private sector.

In the area of health, a 10-year plan for the creation of satellite medical schools is still being considered for the Univ of Victoria and the Univ of Northern BC. And the money delivered through the chopped business subsidy programs may also be directed to S&T in another form. MCSE minister Jim Thorpe has reportedly gone to bat for S&T assistance and many are hoping that the first glimpses of a new S&T strategy and a reversal of years of cuts will be contained in next month’s provincial Budget.

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