Tories cut TPC's base Budget while speculation rages over program's fate

The base Budget of the beleaguered Technology Partnerships Canada (TPC) program is being cut by $42.2 million within two years as part of the Conservative government's $1-billion program cutting exercise announced last month. The reduction will be evenly split over the next two fiscal years and could be the first of a series of moves to shrink or eliminate the industrial assistance program.

An Industry Canada spokesperson confirms that the cuts will be taken from TPC's base budget and not from the fund jointly administered with the Industrial Research Assistance Program.

Speculation over TPC's fate is rampant and could become a sensitive political issue for the Harper government. Many of the aerospace and defence (A&D) firms that have received TPC assistance are based in Quebec - a key battleground for the minority Conservatives as they plan their strategy for winning a majority in the next election. While in opposition, the Conservative hammered TPC, labelling it as corporate welfare and worse. Now there is speculation that assistance to non-A&D firms may be delivered through tax measures or other incentives, while A&D could be the focus of an entirely new program.

Since being elected, the Conservative government has taken a series of measures to bring accountability and transparency to TPC, releasing an audit of TPC recipient firms, a report on repayments by individual firms and implementing a new contribution agreement. But obtaining information that appears to support TPC's missions is far more difficult.

TPC offices and senior personnel - once easily contacted -are now virtually impenetrable. The agency web site no longer contains staffing information and lists only a 1-800 phone number. A recent consultant's report showing that TPC's impact on the economy greatly outweighs the cost of the program has never been released. The year-old report by Hickling Arthurs Low was recently obtained by The Globe and Mail. A TPC spokesperson told the Globe on September 11 that the report would soon be posted on its web site, but as of October 4 it had not materialized.

In a September 26 speech to the Aerospace Industries Association of Canada, Industry minister Maxime Bernier was careful not to criticize the program, focusing instead on his government's intention to continue support for aerospace and defence.

"This is a time of change, and I am looking forward to working with you as we build a very bright future for Canadian aerospace," said Bernier. "We have a major challenge to communicate to Canadians. They need to know why investment in your industry helps keep the Canadian economy competitive in a global, knowledge-based industry. Over the years, you have become very good at communicating with senior bureaucrats and politicians. But in this new environment, we are counting on you to do more."

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