Appearance before the Standing Committee on Industry and Technology (INDU) by the Minister of Innovation, Science and Industry

May 8, 2024

ISI Portfolio – Financial figures at a glance

ISED Portfolio's budget for main estimates 2024-25
($ millions)	Main estimates (Voted)			Main estimates (Statutory)	2024-25 Main estimates (Voted+ Statutory)	FTEs
($ millions)	Operating	Capital	G&C	Main estimates (Statutory)	2024-25 Main estimates (Voted+ Statutory)	FTEs
Innovation, Science and Economic Development Canada (ISED)	618.1	76.4	5,244.0	196.6	6,135.0	6,295
National Research Council of Canada (NRC)	582.4	152.1	610.7	250.0	1,595.1	4,399
Natural Sciences and Engineering Research Council (NSERC)	58.6	-	1,318.2	7.1	1,383.8	506
Social Sciences and Humanities Research Council (SSHRC)	44.2	-	1,148.9	4.8	1,197.9	378
Statistics Canada (StatCan)	648.2	-	-	88.4	736.6	6,823
Canadian Space Agency (CSA)	242.3	80.1	79.5	12.2	414.0	880
Standards Council of Canada (SCC)	21.4	-	-	-	21.4	-
Copyright Board of Canada (CB)	4.0	-	-	0.4	4.5	25
Total – MIN-ISI	2,219.2	308.5	8,401.2	559.4	11,488.4	19,306
Destination Canada (DC)	115.0	-	-	-	0	-
Total – ISED portfolio	2,334.2	308.5	8,401.2	559.4	11,603.4	19,306

The $11.6 billion in funding is an increase of $527.9 million compared to last year’s Main Estimates. Most of the increase is due to measures that were announced in Budget 2023 and other federal announcements, including funding for future years.

B24 Refocused Government Spending (RGS) reduction by department
($ million)	2024-25	2025-26	2026-27 & ongoing
Innovation, Science and Economic Development Canada (ISED)	141.2	158.1	313.7
Canadian Space Agency (CSA)	11.1	21.5	17.2
National Research Council of Canada (NRC)	10.4	14.9	21.1
Natural Sciences and Engineering Research Council (NSERC)	1.5	1.5	1.5
Social Sciences and Humanities Research Council (SSHRC)	1.4	1.4	1.4
Statistics Canada (StatCan)	4.2	5.9	8.2
Total-MIN-ISI	169.7	203.3	363.2

B24 – Top areas of new investment (not yet reflected in 2024-25 main estimates)

Federal government support for science and research

Through Budget 2024, the Government of Canada will increase core research grant funding and support Canadian researchers by providing $1.8 billion, starting in 2024-25, with $748.3 million per year ongoing to SSHRC, NSERC, and CIHR.
Budget 2024 also includes $855 million to invest in talent, increasing the value and number of research scholarships and fellowships to support for master’s, doctoral and post-doctoral students, as well as $30 million to support Indigenous participation in research, with $10 million provided for First Nation, Métis, and Inuit respectively.

Artificial Intelligence

Budget 2024 proposes $2.4 billion to help secure Canada’s AI advantage by investing in compute capacity and infrastructure, accelerating responsible and safe AI adoption and deployment and supporting workers through skills training.

Housing

$50M over two years, starting in 2024-25, to ISED for NGen for a new Accelerated Homebuilding Fund to promote adoption of productivity-enhancing digital technologies, automation, and sustainable materials.
$20 million over four years, starting in 2024-25, between Statistics Canada and CMHC for modernizing and enhancing the collection and dissemination of housing data, including municipal-level data on housing starts and completions. Minister of ISI and Minister of Housing to jointly develop this integrated approach and report back to the PM by September 2024.
$50 million (To RDAs) over two years (from existing resources) starting in 2024-25, to advance local innovative housing solutions such as designing and upscaling of modular homes, the use of 3D printing, mass timber construction, and panelized construction through the Regional Development Agencies.

2024-25 main estimates

Key messages:

The Government of Canada takes fiscal responsibility and the stewardship of public funds very seriously
The $11.6 billion in funding requested for the Innovation, Science and Economic Development Canada (ISED) Portfolio in 2024–25 includes funding for normal operations and program delivery
It also includes funding to continue the implementation of Budget 2023 measures focused on building a stronger economic future for all Canadians, and spending reductions due to the Refocusing Government Spending initiative
With Canada having the strongest economic growth in the G7 in 2023-24, the portfolio will continue to build a stronger, more sustainable and more secure Canadian economy

Supplementary messages:

In 2024–25, Innovation, Science and Economic Development Canada (ISED) will continue working with the ISED Portfolio and other federal partners to position Canada as a global innovation leader by fostering competitive, sustainable and inclusive growth through strategic initiatives
These include investing in the development of clean technologies, enhancing the competitiveness of Canadian manufacturing, establishing Canada as a leader in battery manufacturing, supporting Canadian leadership in space and creating equitable market conditions
In 2024-25, the government will continue to stimulate an innovative economy and improve the well-being of Canadians by supporting research and innovation in the fields of science and technology, providing advice on scientific issues, and funding programs that promote collaboration among research organizations

Refocusing Government Spending to deliver for Canadians

In Budget 2023, the government committed to reducing spending by $14.1 billion over the next five years, starting in 2023–24, and by $4.1 billion annually after 2027-28
As part of the Refocusing Government Spending initiative, the government committed to the following spending reduction targets for the Innovation, Science and Economic Development Canada (ISED) Portfolio:
- 2024-25: $170,627,888
- 2025-26: $205,126,324
- 2026-27 and after: $366,243,827
In addition, for fiscal year 2024-25, the government committed to a reduction of $135 million from the Canadian Digital Adoption Program (CDAP) ($110 million) and the Global Innovation Clusters ($25 million)as part of the Budget 2023 Realigning Previously Announced Spending. The 2023 Fall Economic Statementannounced an additional reduction of $56.3 million from CDAP to further increase the efforts to refocus government spending

Background:

On a yearly basis, the government prepares main estimates in support of its request to Parliament for authority to spend public funds. Main estimates must be tabled by March 1, before the beginning of the new fiscal year. This year, the 2024–25 main estimates were tabled in Parliament on February 29, 2024.

The $11.6 billion in funding is an increase of $527.9 million compared to last year's main estimates. Most of the increase is due to measures that were announced in Budget 2023 and other federal announcements, including funding for future years.

As part of the increase, the main estimates include $668.1 million in new funding from prior Budget announcements. The estimates also include a total of $148.1 million for wage increases as a result of adjustments made to terms and conditions of services or employment in the federal public administration and $0.4 million for transfers and other changes.

These increases are partially offset by the reductions identified as part of Refocusing Government Spending to deliver for Canadians. Therefore, the net increase generated in these main estimates represents $527.9 million compared to last year. The main items are:

$236.8 million for a special contribution agreement with Nexstar Energy to help position Canada as a leader in battery manufacturing by developing a sustainable battery innovation and industrial ecosystem
$83.3 million to support the planning, design, development and testing of the 2026 Censuses of Population and Agriculture. Under the Statistics Act, the Agency is required to conduct these censuses every five years
$52.6 million to continue Canada's participation in the International Space Station until 2030. By confirming its participation, Canada secures a new flight for one astronaut to the station and sustained access to this unique microgravity environment to conduct new Canadian science
$40.3 million to secure Canada's membership in the Square Kilometre Array Observatory, deliver on its work share commitments and establish a domestic data centre to reinforce Canada's position as a world leader in astronomy
$35.9 million for the College and Community Innovation program to increase innovation through partnerships between Canadian colleges, universities and partner organizations
$33.3 million to sustain Statistics Canada's cloud operations, with the expectation that an enterprise-wide cloud funding model will be established for the government
$23.5 million to support university researchers in developing technologies and crop varieties that will allow for net-zero emission agriculture, and $20.7 million for the renewal of the Canada Excellence Research Chairs to support world-renowned researchers and their teams to establish ambitious research programs at Canadian universities

Details by organization, including changes from last year's main estimates, are:

Innovation, Science and Economic Development Canada: $6.1 billion, an increase of $283.2 million
National Research Council of Canada: $1.6 billion, an increase of $46.7 million
Natural Sciences and Engineering Research Council of Canada: $1.4 billion, an increase of $65.8 million
Social Sciences and Humanities Research Council of Canada: $1.2 billion, an increase of $42.6 million
Statistics Canada: $736.6 million, an increase of $204.5 million
Canadian Space Agency: $414 million, a decrease of $123.4 million
Standards Council of Canada: $21.4 million, an increase of $3.6 million
Copyright Board of Canada: $4.5 million, an increase of $0.1 million
Destination Canada: $116 million, an increase of $4.8 million

Telecom pricing

Key messages:

All Canadians should be able to access essential services at affordable prices, including high quality and affordable telecommunications services
The Government of Canada has made significant progress to reduce the cost of internet, home phone, and cell phone plans, and to increase access to these services
Budget 2024 proposes amending the Telecommunications Act to better allow Canadians to renew or switch between home internet, home phone, and cell phone plans so that Canadians can find better deals
The government will continue to insist on improved competition and better prices for consumers

Supplementary messages:

Budget 2024 proposed amendments to the Telecommunications Act

Proposed amendments to the Telecommunications Act announced in 2024 would:
Prohibit carriers from charging consumers extra fees to switch carriers
Require carriers to help consumers identify plans, which may include lower-cost plans, in advance of the end of a contract
Require carriers to provide a self-service option, such as an online portal, for customers to easily switch between or end plans with a provider
The Canadian Radio-television and Telecommunications Commission (CRTC) will be responsible for implementing these measures and will consult on specific requirements.

Progress on pricing

Data from Statistics Canada shows that with increased competition in the market since the Rogers-Shaw and Quebecor-Freedom transactions were approved, wireless prices have declined across the board by 25% (between March 2023 and February 2024)
Some declines have been more dramatic. For example, in 2022, 20 gigabyte plans were being sold for an average of $73. In December 2023, these plans were widely available for prices in the range of $30 to $40. Other improvements, like much more attractive international roaming options, have been made as well
Customers out of contract and dissatisfied with their current providers should consider switching to take advantage of the improved competition

State of competition

The Government of Canada has introduced measures in support to spectrum policies that promote competition and a new policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC)
The addition of a new fourth player, following Quebecor's acquisition of Freedom Wireless, and its additional spectrum and network access provides better competition against the national carriers
These measures have resulted in lower prices, expansion of 5G service, and new unlimited roaming options
Recent measures to improve competition, such as the Canadian Radio-television and Telecommunications Commission's (CRTC) Mobile Virtual Network Operator rules, continue to be implemented, and recently allocated spectrum will be put to use. The CRTC is also reviewing its rules for Internet competition and implementing the government's policy direction

Background:

Wireless pricing

The government's 25% over two years price reduction benchmark was announced in March 2020 and successfully achieved ahead of schedule
Studies commissioned by Innovation, Science and Economic Development Canada (ISED) and the Competition Bureau (CB) highlight the positive impact smaller carriers have in lowering prices

Rogers/Bell price increases

Rogers announced wireless customers out of contract would see price increases after January 17, 2024. Bell also increased prices for out of contract wireless customers beginning in February
As part of legally binding undertakings in acquiring Shaw, Rogers agreed to maintain prices for Shaw Mobile customers for five years, who were not included in the announced price increases

Spectrum matters

Innovation, Science and Economic Development Canada (ISED) has taken successive actions through spectrum licensing to encourage competition. Most recently, in November 2023, the 3800-Megahertz (MHz) auction implemented a cross-band cap ensuring access to spectrum for smaller carriers. Since 2022, these measures have more than doubled their spectrum holdings, further strengthening their ability to offer competitive services

Canadian Radio‑television and Telecommunications Commission (CRTC)

As of February 10, 2023, the government implemented a new policy direction to the CRTC on a renewed approach to telecommunications policy. The policy direction provides specific instructions to the CRTC to enhance and improve Internet and wireless competition. In March 2023, the CRTC launched a review of Internet competition rules. The CRTC also continues to implement its mobile competition rules regarding Mobile Virtual Network Operator (MVNO) access. MVNO rules enable smaller providers to get access to the mobile networks of Bell, TELUS, and Rogers to better compete

Rural and remote broadband

Key messages:

Connectivity is essential for rural and remote communities, as it enables access to the digital economy, essential services, educational opportunities, and remote work
That is why the Government of Canada is working hard to ensure all Canadians, no matter where they live, have access to fast, reliable, and affordable Internet
Through the more than $3.2 billion Universal Broadband Fund (UBF), the government is making significant progress towards its connectivity targets
We will continue to invest in rural, remote, and Indigenous communities to reach the goal of connecting 98% of Canadians to high-speed Internet by 2026, and all Canadians by 2030

Supplementary messages:

Under the Universal Broadband Fund (UBF), applicants that offer lower retail pricing are assessed more favourably and their proposed retail plans must remain in place for five years
The Government of Canada has also announced significant agreements with Quebec, Ontario, Alberta, British Columbia, Newfoundland and Labrador, and Prince Edward Island to help provide high-speed Internet access to all Canadians by 2030
The UBF also includes $50 million to improve mobile services in areas that will benefit Indigenous peoples. Under this stream, the UBF is providing support for cell coverage along British Columbia's Highway of Tears

Background:

Whole of Government status:

Since 2015, the Government of Canada has made more than $7.6 billion available for broadband connectivity and is on track to meet its connectivity targets. By 2026, over 98% of households are projected to have access to speeds of 50/10 megabits per second (Mbps). To date, 93.5% of Canadian homes have access to high-speed Internet or are targeted to receive access through existing program commitments.

Universal Broadband Fund (UBF):

In Budget 2019, the government set a target for 95% of Canadians to have access to speeds of at least 50/10 Mbps by 2026 and 100% by 2030. With new investments, the target for 2026 has been increased to 98%. The UBF has dedicated $3.2 billion, up from the original $1 billion, towards connecting Canadians living in rural and remote areas to high-speed Internet and improving mobile Internet for Indigenous peoples. To connect 823,000 households, there are federal-provincial co-funding agreements with:

Quebec ($920 million)
Ontario ($1.2 billion)
Newfoundland and Labrador ($136 million)
Alberta ($780 million)
British Columbia ($830 million)
Prince Edward Island ($20 million)

This includes a $4.5 million co-funding agreement with British Columbia to provide mobile connectivity along the Highway of Tears. The Minister of Rural Economic Development is responsible for the delivery of the UBF.

Low Earth Orbit (LEO) satellite developments:

The government has partnered with Telesat and invested up to $600 million to secure LEO satellite capacity over Canada. These satellites will provide high-bandwidth, low-latency broadband coverage to rural and remote regions of Canada, including the North.

Spectrum initiatives:

The government is releasing spectrum to support 5G technologies and the provision of telecom services across Canada, including through the 2019 600 MHz auction, the 2021 3500 MHz auction, and upcoming auctions for 3800 MHz and millimeter wave spectrum. New rules for the 3800 MHz spectrum auction were announced on June 30, 2022, and are an important step in ongoing efforts to ensure Canadians have access to affordable and high-quality telecom services. To ensure this spectrum is put to use in a timely manner, especially in rural and remote areas, ISED has deployment requirements that reflect the minimum population coverage that licensees are required to meet within a service area within a specific timeframe. As well, to further address concerns that there is licensed spectrum in rural and remote areas that is not being used, and that insufficient access to this spectrum is impeding the expansion and improvement of wireless broadband services for consumers and businesses, ISED published several consultations in August 2021 that support rural and remote services and promote spectrum sharing. On August 3, 2022, ISED also published a consultation that will provide localised access to shared 5G spectrum to smaller users including wireless Internet service providers, vertical industries, and Indigenous communities.

Canadian Radio-television and Telecommunications (CRTC) Broadband Fund:

In 2016, the CRTC established a fund of up to $750 million to help achieve universal access at speeds of 50/10 Mbps, as well as improve mobile coverage along major roads. The CRTC's fund is sourced from a levy on carriers' revenues. The CRTC announced its first set of projects in northern and satellite dependent communities in August 2020 and continues to announce projects under its national call.

Connect to Innovate (CTI):

CTI (announced in Budget 2016), will bring improved Internet speeds to over 975 rural and remote communities, including 190 Indigenous communities.

Spectrum costs

Key messages:

Spectrum is a valuable public resource that the Government of Canada manages to maximize its economic and social benefits for Canadians
The goal of the spectrum auctions is to get spectrum into the hands of companies with the incentive to deploy quickly to provide telecom services
The cost of spectrum does not determine the price of mobile services – competition does
That is why spectrum auctions are designed to support competition and result in greater choice, lower prices, and better wireless services for Canadians

Supplementary messages:

Revenues from spectrum auctions are remitted to the Consolidated Revenue Fund and used to support a variety of Government of Canada priorities and initiatives

Background:

Spectrum auctions are conducted in Canada when the demand for a particular spectrum band is expected to exceed the supply of available licences. The government does not set spectrum prices, which are the result of competitive bidding.

The 3500 MHz auction, held in 2021, raised $8.9 billion for the Government of Canada and has prompted mobile operators to argue that Canadian spectrum prices are too high and are passed on to consumers in the form of higher wireless prices. In reality, bidding in the auction resulted in prices that were 15 times the opening bid prices set by ISED. In comparison, prices in the 2023 auction for 3800 MHz spectrum, which raised $2.2B for a larger quantity of similar spectrum, were significantly lower – even lower than equivalent spectrum in the United States.

Spectrum prices are driven by the expected return on investment for the licences being auctioned, depending on the use case of the spectrum and the retail prices providers expect to be able to charge. In other words, expected retail prices drive spectrum prices, not the other way around. Costs for spectrum have varied significantly among national operators, but these differences are not similarly reflected in significantly different retail prices, and average spectrum costs are typically only 3-5% as a percentage of average revenue per user (ARPU).

The degree of competition between service providers plays an important role in retail pricing. ISED continues to design auctions with pro-competitive measures, such as set asides or spectrum caps, to make spectrum available for small and regional wireless carriers, which have been proven to lower prices and offer consumers more choice, by ensuring these carriers can access spectrum to build robust, competitive networks.

Bill C-26, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts.

Key messages:

Cyber threats are evolving rapidly and Canada must be better prepared to deal with these threats to our safety
Through Bill C-26, the Government of Canada is proposing to strengthen Canada's telecommunications framework to keep pace with evolving threats
Amending the Telecommunications Act as intended would provide the government with an explicit legislative authority to promote the security of Canada's telecommunications system
For example, the legislation would enable the government to prohibit the use of products and services from specific suppliers by services providers, if those suppliers pose a risk to the security and reliability of Canadian networks

Supplementary messages:

On the status of the Bill C-26

Committee study in the House of Commons has been completed and the efforts of members from all parties is appreciated to successfully study the bill and further strengthen it
The government looks forward to the passing of this important bill for protecting Canada's telecommunications system

On global actions

Canada's critical infrastructure is becoming increasingly interconnected, interdependent, and integrated with cyber systems, particularly with the emergence of new technologies such as 5G
The proposed legislative amendments align with actions taken by Canada's Five Eyes partners and will allow Canada to take strong action against threats to the security of our telecommunications sector

Background:

On June 14, 2022, the Government of Canada tabled Bill C-26, an Act respecting cyber security, amending the Telecommunications Act, and making consequential amendments to other Acts
The Bill passed through clause-by-clause examination at the Public Safety and National Security (SECU) standing committee on April 8, 2024. It was reported to the House of Commons on April 19
Bill C-26 is comprised of two main elements
Part 1 of Bill C-26 proposes amendments to the Telecommunications Act (TA) that would establish new authorities that enable the government to take action to promote the security of the Canadian telecommunications system, which could include taking measures with respect to high-risk suppliers, as well as information sharing and enforcement powers
A new policy objective would be added to promote the security of the Canadian telecommunications system, enabling the Minister of Industry and the Canadian Radio-television and Telecommunications Commission (CRTC) to consider this objective when exercising their respective powers under the TA. It would allow for the same thing under the Radiocommunication Act which incorporates the TA objectives by reference
The legislation would enable the Governor in Council to impose prohibitions on the use of products and services from specific suppliers by Canada's telecommunication services providers (TSPs), should those products be deemed to pose a risk to the security and reliability of the Canadian telecommunications system
Additional authorities to promote the general security of the Canadian telecommunications system would rest with the Minister of Industry. The Minister would also be provided with information-sharing powers and enforcement authorities
Part 2 of Bill C-26 would enact the Critical Cyber Systems Protection Act, which would establish a regulatory framework to strengthen baseline cyber security for services and systems that are vital to national security and public safety and give the Government a new tool to respond to emerging cyber threats. It would also introduce a regulatory regime requiring designated operators in the finance, telecommunications, energy and transportation sectors to protect their critical cyber systems. The legislation addresses longstanding gaps in the Government's ability to protect the vital services and systems Canadians depend on by enabling it to:
designate services and systems that are vital to national security or public safety in Canada as well as the operators or classes of operators responsible for their protection
ensure that designated operators are protecting the cyber systems that underpin Canada's critical infrastructure
ensure that cyber incidents that meet or exceed a specific threshold are reported
compel action by organizations in response to an identified cyber security threat or vulnerability
ensure a consistent cross-sectoral approach to cyber security in response to the growing interdependency of cyber systems

Food price stabilization

Key messages:

Food affordability is a critical issue facing all Canadians and the Government of Canada is taking a series of actions to promote the stabilization of grocery prices
The government has called on companies throughout the food supply chain, both grocers and suppliers, to take meaningful actions to stabilize grocery prices
Recent data has shown that food inflation has slowed, but the Government of Canada will continue to take action to stabilize food prices to ensure that Canadians are paying fair prices for groceries

Supplementary messages:

Supporting consumers

In October 2023, the Government of Canada announced that it would be tripling its investment in the Contributions Program for Non-Profit Consumer and Voluntary Organizations in support of efforts to examine and address factors affecting food affordability in Canada
By providing further funding for consumer advocacy, the government is ensuring that consumer interest organizations are supported to meaningfully advocate for consumers.
This investment will contribute to the government's ongoing efforts to make life more affordable for Canadians
On February 6, 2024, the government announced new funding for consumer advocacy:
- The Public Interest Advocacy Centre will investigate food pricing policy and regulatory challenges;
- Union des consommateurs will bring together 100 experts to discuss solutions to the most pressing challenges Canadian consumers are facing
- Food Secure Canada will investigate retail practices that negatively impact consumers, such as shrinkflation and skimpflation in the grocery sector
- Option consommateurs will conduct research to help consumers identify and protect themselves from potentially unfavorable sales practices
- Équiterre will highlight innovative solutions that provide consumers access to affordable, healthy, and sustainable food
- The Consumers Council of Canada will conduct research on food fraud, per unit pricing, price scanner accuracy, and shrinkflation and skimpflation

Food Price Data Hub, monitoring food prices and stabilization

In November 2023, the government launched the Food Price Data Hub to improve the availability and accessibility of data on food prices. The Food Price Data Hub provides Canadians with more detailed information on food prices and helps consumers make informed decisions about their food purchases
The data is provided through a partnership involving Statistics Canada (StatsCan), Agriculture and Agri-Food Canada (AAFC) and key partners in the food system

Grocery Code of Conduct

The government will continue its engagement with the food industry to establish a Grocery Code of Conduct that will support fairness and transparency across the industry. These efforts are being led by the Minister of Agriculture and Agri-Food Canada (AAFC), in collaboration with provincial partners

Competition Act

The Government of Canada is prioritizing key amendments to the Competition Act to enhance competition and ensure the Competition Bureau (CB) has the tools and resources it needs to protect competition
The changes are informed by the comprehensive review of the Competition Act undertaken by the government to create the kind of marketplace that will allow Canada's economy to innovate and grow
Three phases of reform have either been completed or are underway, in an effort to better align Canada's system with international best practices

Background:

Competition Act

The government proposed or enacted significant amendments to the Competition Act through Bill C-19 (received Royal Assent in June 2022); Bill C-56 (received Royal Assent in December 2023) and Bill C-59 (currently at Second Reading in the House of Commons). These amendments seek to enhance competition to improve affordability and consumer choice across Canada. The are modernizing Canada's merger review process, revamping enforcement, addressing environmental and labour concerns, and ensuring that the Act is internally consistent and in line with Canada's legal framework as well as international best practice

Grocery Code of Conduct

The Grocery Code of Conduct is an industry-led process that aims to bring transparency and certainty to commercial dealings across the agri-food value and supply chain by establishing a framework for dispute resolution and governance through the establishment of a Grocery Code Adjudicator's Office. A Grocery Sector Code of Conduct (the Code) is viewed as in instrument to improve transparency, predictability and respect for the principle of fair dealing in supply chain relations. While there have been significant advances in the past 2.5 years, some grocery retailers have expressed concerns about elements of the Code. In December 2023, Minister of Agriculture and Agri-Food Canada (AAFC) and Minister Lamontagne (Quebec) issued a joint statement calling on all industry partners to quickly commit to signing on, and stating that governments will be reviewing all possible options

Food Price Data Hub

Building on existing data collection efforts to enhance transparency, the government launched a Food Price Hub, which offers access to a centralized collection of information on food prices in Canada. The hub features information on the year-over-year changes in the prices of goods and services along the food supply chain, from farm to fork, from the price of agricultural products sold by farms to the price of diesel fuel used to transport goods to the retail markup at grocery stores. Important enhancements were recently made by publishing a new interactive data visualization tool to show average food prices across the country which allows Canadians to build their personal shopping cart to better track prices of food items

ISED's Contributions Program for Non-Profit Consumer and Voluntary Organizations

Innovation, Science and Economic Development Canada's (ISED) Contributions Program for Non-Profit Consumer and Voluntary Organizations is the only federal funding mechanism of its kind to support these organizations to conduct research and encourage financial self-sufficiency
The Contributions Program for Non-Profit Consumer and Voluntary Organizations is a grants and contribution program managed by the Office of Consumer Affairs and dedicated to supporting a broad range of consumer advocacy organizations. Funds support non-profit consumer organizations in the production of high quality, independent and timely research on consumer issues. It also aims to strengthen capacity building for consumer organizations to help fulfil their mandates, increase their visibility, membership and self-sufficiency in the interest of Canadian consumers

ISED's Office of Consumer Affairs

The Office of Consumer Affairs (OCA) promotes the interests and protection of Canadian consumers. Additionally, the Office provides research and analysis on marketplace issues in support of both policy development and intergovernmental harmonization of consumer protection rules and measures. In addition, it works with international, federal and provincial/territorial partners to identify and address important consumer issues and develops and distributes consumer information and awareness tools

Competition policy reform

Key messages:

Encouraging more competition and accountability in all markets will lead to more choices and better prices for Canadians
That is why the Government of Canada has undertaken the most comprehensive modernization of the Competition Act in a generation
Three phases of reform –through three separate Bills– have either been completed or are underway
The government has also provided significant new resources to the Competition Bureau (CB) to better execute on its mandate

Supplementary messages:

Encouraging more competition and accountability in all markets will lead to more choices and better prices for Canadians
That is why the Government of Canada has undertaken the most comprehensive modernization of the Competition Act in a generation
Three phases of reform –through three separate Bills– have either been completed or are underway
The government has also provided significant new resources to the Competition Bureau (CB) to better execute on its mandate

Background:

The Competition Act is a federal law governing most business conduct in Canada. Its purpose is to maintain and encourage competition, in order to provide consumers with competitive prices and product choices, among other things. The Commissioner of Competition heads the Competition Bureau (CB) and is responsible for the administration and enforcement of the Competition Act.

The Competition Act contains civil and criminal provisions that allow the Commissioner to review business conduct and mergers that may harm competition and consumers. The Commissioner conducts investigations and, where necessary, takes cases before the Competition Tribunal or the courts to be adjudicated. The commissioner also carries out non-enforcement functions, such as advocacy for greater competition both within and outside of government, as well as international collaboration, both bilaterally and within multilateral fora.

In light of the significant changes that the Canadian economy has undergone with the global digital transformation and the rise of data-amassing "Big Tech" giants, questions have arisen as to the adequacy of the current legal framework. Supply chain challenges and high levels of inflation have also led to acute concerns over corporate concentration and uneven market power.

On February 7, 2022, the Minister of Innovation, Science and Industry announced a commitment to pursuing potential changes to the Competition Act to make targeted improvements, broadening the Bureau's scope of activity, fixing loopholes and adjusting maximum penalties to better account for the power of today's major actors. This came to fruition with the Budget Implementation Act, 2022, No. 1, which included several key reforms to modernize the law and align it more closely with international norms. These included, among others: reformulating maximum penalties; prohibiting wage-fixing and no-poach agreements between employers; clarifying that incomplete price disclosure is a deceptive marketing practice; and allowing private access to the Competition Tribunal for those impacted by abuse of dominance. The amendments also expanded the list of factors to be considered when assessing the competitive impact of a merger, competitor collaboration, or alleged abuse of dominance to better account for features of the digital economy such as network effects and non-price competition.

Alongside these changes, the government signalled that a broader review of the law was still to come, in accordance with the Minister's mandate letter and Budget 2022. On November 17, 2022, the government launched the review by seeking Canadians' views on a wide array of competition policy topics, including changes that would help the Competition Bureau (CB) better protect consumers and the integrity of the marketplace. Canadians were invited to make submissions online until March 31, 2023, and those submissions have since been published on the Innovation, Science and Economic Development (ISED) website. A series of roundtables have also been held with a variety of stakeholders to ensure the government heard diverse views.

The Consultation garnered significant interest, receiving over 130 submissions from identified stakeholders, as well as more than 400 responses from members of the general public. These submissions raised over 100 potential reform proposals.

In December 2023, the Parliament of Canada adopted a first set of legislative amendments to the Competition Act through Bill C-56, the Affordable Housing and Groceries Act. The amendments made a number of landmark changes, including:

a framework for the Competition Bureau to conduct market studies with the potential for compulsory information-gathering powers
expanding the scope of anti-competitive business collaborations to include those between businesses that are not competitors or potential competitors in certain circumstances
repealing the "efficiencies defence", which permitted otherwise anti-competitive mergers and collaborations to withstand challenge where they generated sufficient economic efficiencies to offset harm to competition
permitting remedial orders against abuses of dominance on the basis of anti-competitive intent or effects alone (instead of both), as well as raising maximum monetary penalties that may be in effect when both are proven

As of April 2024, the government's most comprehensive response to the consultation, a set of further, wide-ranging amendments proposed to all areas of the Competition Act, are currently navigating the legislative process via Bill C-59, the Fall Economic Statement Implementation Act, 2023. Broadly, these would modernize the merger notification and enforcement process, significantly increase the scope of review and consequences for anti-competitive collaborations, broaden and incentivize private enforcement, and address government priorities within the framework such as labour and the environment.

Battery plant investments

Key messages:

Canada aims to become a global leader in the development of an end-to-end battery ecosystem
By supporting domestic battery development capacity, the Government of Canada is pleased to attract further investments throughout the electric vehicle (EV) and battery supply chain and securing future EV assembly mandates
To date, the government's efforts have attracted projects worth more than $46 billion in private investment, including most recently Honda
These projects will generate significant benefits by supporting tens of thousands of jobs and contributing to GDP growth

Supplementary messages:

As the North American automotive sector pivots to electric vehicle- (EV) based platforms, battery manufacturing investments will be a critical component of the new automotive supply chain
To facilitate the Canadian automotive industry's transition towards electrification, the government is investing in the industry, ensuring adequate vehicle supply, and supporting the installation of more charging and refuelling infrastructure
Canada has announced its commitment to provide production support to three EV battery facilities (PowerCo, NextStar and Northvolt) to mirror the incentives under the U.S. Inflation Reduction Act (IRA) Advanced Manufacturing Production Credit (US$35 per kWh for battery cells and US$10 per kWh for battery modules produced and sold).
Support provided through Special Contribution Agreements will range between C$4.6 billion and C$15 billion for each plant, for a total of C$32.8 billion, with one third of the cost supported by Ontario and Quebec
The total amount of support will depend on the level of production at the plant located in Canada. Support under the Special Contribution Agreements will be adjusted if any changes occur to the Advanced Manufacturing Production Credit in the United States
The government has also committed to provide support for capital expenditures through the Strategic Innovation Fund of up to C$500 million for NextStar, C$700 million for PowerCo., and C$1.34 billion for Northvolt

Background:

In many countries, major automakers are pivoting to manufacturing electric vehicles (EVs) at historic speeds. Canada has everything it needs to be a global leader in EV battery manufacturing: access to markets; talent; land; green energy; critical minerals, such as nickel, cobalt, graphite, and lithium; and a focus on innovate, reuse, and recycle. That is why the Government of Canada is investing in the EV battery value chain by attracting strategic anchor investments in battery material processing and cell manufacturing.

Since March 2023, Canada has announced three EV battery manufacturing plants: Volkswagen's EV battery subsidiary, PowerCo., in St. Thomas, Ontario; Stellantis-LG Energy Solution joint venture, NextStar, in Windsor, Ontario; and, Northvolt in Saint-Basile-le-Grand and McMasterville, Quebec. On April 25, 2024, Honda also announced that it will be investing $15 billion to create a comprehensive electric vehicle supply chain, located in Alliston, Ontario. These private investments will total more than C$46 billion in the Canadian economy only for the building of the facilities.

The passage of the U.S. Inflation Reduction Act (IRA) into force in 2022 and the use of its Advanced Manufacturing Tax Credit to support U.S.-based battery projects posed a challenge to Canada's ability to compete for North American battery investments. In order for Canada to remain a competitive investment destination, Canada announced that it would provide production support via Special Contribution Agreements with PowerCo., NextStar and Northvolt.

The current estimated cost for production support is between C$4.6 billion and C$15 billion for each plant, for a total of C$32.8 billion. Support will depend on how much the plant produces and sells and will be adjusted if any changes occur to U.S. IRA's Advanced Manufacturing Production Credit.

Canadian Critical Minerals development

Key messages:

With the Canadian Critical Minerals Strategy as its guide, the Government of Canada has been investing to develop the entire critical minerals value chain, by expanding its manufacturing, processing and recycling capacities
Through the Strategic Innovation Fund (SIF), the government has made available $1.5 billion for critical minerals projects
These investments will help build resiliency along the minerals supply chain, bolster Canada's global economic competitiveness, and demonstrate its reliability for its allies
Budget 2024 proposes several new measures in support of Canada's critical minerals sector by expanding and clarifying the scope of activities eligible under the Clean Technology Manufacturing Investment Tax Credit and setting targets aimed at accelerating Impact Assessment and permitting processes

Supplementary messages:

Critical minerals are needed to power clean technologies such as solar panels, wind turbines, semiconductors and battery-operated vehicles
Canada is uniquely placed to play an important role in the global energy transition – having both an abundance of critical minerals reserves, a skilled workforce, and high environmental, social and governance standards
Globally, Canada is regarded as a strategic partner and a provider of reliably sourced high-quality critical minerals inputs that will contribute to the net-zero economy.
Government of Canada funding is stimulating industrial growth, attracting investments and furthering Canada's economic prominence in global markets
The government is committed to working together with the provinces, territories and industry partners to ensure Canada's success

Background:

The quantity and quality of critical minerals needed to support the world's ambitious low-carbon transition continues to bring to light bottlenecks in critical minerals supply chains. Non-market economies currently control and supply approximately 74 percent of the world's cobalt, 90 percent of global nickel, and 70 percent of graphite, which are all minerals that are vital for battery technology. In response, governments are diversifying their supply chains to decrease dependence on non-market entities, while securing their value chains. Canada is achieving this by investing in, and implementing policies, to support and secure the development of our domestic critical minerals value chains and those of our allies.

In Budget 2022, the Government committed up to $3.8 billion over eight years to support work announced in the Canadian Critical Minerals Strategy, which is being co-led by the Departments of Innovation, Science and Economic Development (ISED) and Natural Resources Canada (NRC).

This funding is being used to drive industrial capabilities, contribute to the economic development of rural, remote and Indigenous communities, and help build a sustainable economy.

Through the Strategic Innovation Fund (SIF), $286 million has been allocated to date to support three major projects:

E3 Lithium received $27 million to demonstrate the viability of the extraction of lithium from brines in Alberta. This facility will be the first step toward a full-scale lithium production plant that will produce up to 20,000 tonnes of battery-grade lithium
Rio Tinto Fer et Titane received $222 million for a critical minerals project in Sorel-Tracy, Quebec to produce several critical minerals
Vale in Becancour, Quebec, received $37 million towards a battery grade nickel sulfate plant to process nickel pellets and rounds.

Note: This project was not announced through a ministerial event but was posted on Proactive Disclosure in 2023.

Budget 2023 introduced a number of new investment tax credits (ITCs) to provide an enhanced level of support for project proponents, and encourage investment in sectors such as clean technologies, energy, clean technology manufacturing, as well as carbon capture, utilization and storage. Draft legislative proposals to implement the Clean Technology Manufacturing ITC, which includes certain minerals extraction and processing activities, were released in December 2023. This incentive would provide a 30 percent tax credit on the cost of eligible activities related to producing all or substantially all of the six target minerals outlined in the Critical Minerals Strategy, i.e., copper, nickel, cobalt, lithium, graphite, and rare earth elements.

Budget 2024 builds on this by:

providing support and clarity to businesses with projects covering multiple metals
providing further clarification on using the value of the qualifying materials as the output metric to assess property usage
modifying eligible investments to include eligible property used in qualifying minerals activities

Canada's riches in the resources necessary for battery manufacturing, coupled with its strong automotive sector, gives it a competitive advantage over many countries. To leverage this advantage, Canada is working towards developing a world-class, domestic battery ecosystem, while maintaining its leadership in sustainability. In support of this work, Budget 2024 provides further funding to drive investment opportunities in the clean economy through the previously announced ITCs, along with a newly announced Electric Vehicle (EV) Supply Chains ITC. This EV Supply Chain ITC would provide a 10 percent tax credit on building costs for businesses investing in Canada across the following supply chain segments:

Electric vehicle assembly
Electric vehicle battery production
Cathode active material production

This new ITC would help to attract private investments, strengthen the EV supply chain and secure the future of Canada's automotive industry.

Globally, Canada is regarded as a strategic partner and a provider of reliably sourced high-quality critical minerals inputs that will contribute to the net-zero economy. As Canada assumes presidency for the G7 group in 2025, it will seize this opportunity to further Canada's goals by reinforcing supply chain security, sustainability and responsible critical minerals sourcing.

Modernization of the Research Support System

Key messages:

Canada's world-class scientists and researchers are solving the most pressing challenges of today and making groundbreaking discoveries in areas such as climate change and health
To provide better coordination across the federally funded research ecosystem and maximize the impact of government support, Budget 2024 announced the creation of a new research funding organization
The new organization and structure will strengthen and modernize Canada's federal support for research
It will help to advance internationally collaborative, multi-disciplinary and mission-driven research

Supplementary messages:

The improvements the government is making follow extensive consultations, including with the Advisory Panel on the Federal Research Support System
Canada's federal granting agencies already do excellent work in their areas of expertise, but more needs to be done to maximize their effect
The granting councils will continue to exist within this new organization, and continue supporting excellence in investigator-driven research, including linkages with the Health portfolio

Background:

The structure of Canada's federal research support system has served Canada well but needs to evolve to address changing realities by better supporting breakthrough research, responding to urgent challenges and opportunities, and capturing the benefits of new knowledge and discoveries.

The government created the Advisory Panel on the Federal Research Support System to provide independent advice to ensure that federal support for research is coordinated and cohesive, responsive to modern research approaches, and agile to address emerging challenges.

The Panel's report, published in March 2023, concluded that Canada has been successful at generating research excellence across many disciplines and that the granting councils (the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research, and the Social Sciences and Humanities Research Council) have excelled at creating knowledge and developing talent in their respective disciplinary areas. However, the system is fragmented, which is detrimental to collaborative, international and cross-disciplinary research and strategic vision and coordination. The Panel made 21 recommendations to address challenges in the system.

Guided by the advice of the Panel, the government announced actions in Budget 2024 to modernize the federal research support system. Central to this plan is a new research funding organization that will be established to drive coordination and enhance support for research.

The granting councils will continue to exist within the new organization, focusing on supporting excellence in investigator-driven research while actively contributing to the collective and strategic direction of the new organization.

The government will also enhance strategic direction and coordination more broadly by establishing a Council on Science and Innovation to provide independent science and innovation policy advice, as well as developing a national science and innovation strategy that will provide clarity and certainty for researchers with respect to the government's science and innovation priorities. In addition, the government is investing in scholarships and fellowships, core research grant funding, and an improved and harmonized grant management system.

Federal government support for science and research

Key messages:

With its highly educated workforce, Canada's science and research sector is solving some of the world's greatest challenges, while driving innovation, growth, and productivity
Since 2016, the government has provided more than $16 billion to support science and research
In addition, Budget 2024 includes investments in modern, high-quality research facilities and infrastructure to solve real-world problems, create the economic opportunities, and attract and train the next generation of scientific talent
By investing in research, and by supporting the recruitment and development of talent in Canada, the government is ensuring that Canada remains a world leader for future generations

Supplementary messages:

Canadian researchers, entrepreneurs, and companies are the driving force of progress, from scientific discovery to bringing new solutions to market
The new investments will boost research and innovation to ensure Canada remains a world leader in science and new technologies
Through Budget 2024, the Government of Canada will increase core research grant funding and support Canadian researchers by providing $1.8 billion, starting in 2024-25, with $748.3 million per year ongoing to SSHRC, NSERC, and CIHR
Budget 2024 also includes $855 million to invest in talent, increasing the value and number of research scholarships and fellowships to support for master's, doctoral and post-doctoral students, as well as $30 million to support Indigenous participation in research, with $10 million provided for First Nation, Métis, and Inuit respectively

Background:

Canada's research community and world-class researchers solve some of the world's toughest problems, and Canada counts on their innovation and hard work to keep its place at the forefront of the world's advanced economies. As noted in Budget 2024, "our worldclass innovators, entrepreneurs, scientists, and researchers are solving the most pressing challenges of today, and their discoveries help launch the businesses of tomorrow."

The government is supporting scientific discovery, developing Canadian research talent, and attracting top researchers from around the planet to make Canada their home base for their important work with more than $16 billion committed since 2016.

Budget 2024 builds on these investments by proposing:

$2.4 billion to secure Canada's artificial intelligence (AI) advantage
$3.5 billion in strategic research infrastructure and federal research support to ensure Canada's researchers can reach their potential, strengthen Canada's fundamental research capacity, and develop a new generation of talent. This includes:
$1.8 billion over five years, starting in 2024-25, with $748.3 million per year ongoing to SSHRC, NSERC, and CIHR
$26.9 million over five years, starting in 2024-25, with $26.6 million in remaining amortization and $6.6 million ongoing, to the granting councils to establish an improved and harmonized grant management system
$608 million in national major research and science infrastructures to drive scientific productivity and attract and train the next generation of scientific talent, while performing cutting-edge research in Canada
$399.8 million over five years, starting in 2025-26, to support TRIUMF, Canada's sub-atomic physics research laboratory, located on the University of British Columbia's Vancouver campus
$176 million over five years, starting in 2025-26, to CANARIE, a national not-for-profit organization that manages Canada's ultra high-speed network to connect researchers, educators, and innovators, including through eduroam
$83.5 million over three years, starting in 2026-27 to extend support to Canadian Light Source in Saskatoon
$45.5 million over five years, starting in 2024-25, to support the Arthur B. McDonald Canadian Astroparticle Physics Research Institute, a network of universities and institutes that coordinate astroparticle physics expertise
$30 million over three years, starting in 2024-25, to support the completion of the University of Saskatchewan's Centre for Pandemic Research at the Vaccine and Infectious Disease Organization in Saskatoon. Of this amount, $3 million would be sourced from the existing resources of Prairies Economic Development Canada (PrairiesCan)
$8.6 million in 2024-25 to the Canadian Space Agency (CSA) for the Lunar Exploration Accelerator Program to support Canada's world-class space industry and help accelerate the development of new technologies.
$855 million over 5 years to increase financial support for graduate student and post-doctoral researchers, as well as developing ways to help researchers obtain jobs with businesses that need specialized talent to ensure Canada's top science talents play a critical role in shaping Canada's research and industrial capacity for years to come. This also includes $30 million over three years, starting in 2024-25, to support Indigenous participation in research, with $10 million each for First Nation, Métis, and Inuit partners

In addition, the government is proposing $600 million over 4 years and $150 million per year ongoing, to further capitalize the Scientific Research & Experimental Development tax incentive program and review ways to modernize the program to boost research and innovation.

Intellectual Property Strategy

Key messages:

Canadians are smart, creative and innovative, but they need the know-how and tools to protect and leverage their ideas for commercial success
The Government of Canada's National Intellectual Property (IP) Strategy ensures that Canadian businesses, creators, entrepreneurs and innovators have access to the best possible IP resources through awareness, education, advice, and strategic IP tools for growth
Continuing the work of the IP Strategy, Budget 2024 provides $14.5 million for the Innovation Asset Collective, to ensure that small- and medium-sized clean tech businesses continue to benefit from IP support to grow their businesses and leverage IP

Supplementary messages:

On high profile patent sales or transfers:

Strategic use of IP can take different forms, including commercialization, licensing, and selling at a profit. Canada's IP Strategy focuses on ensuring that companies make informed decisions
The global marketplace of patents plays a critical role in the global economy. Strong competition in a free and open market drives entrepreneurship and innovation, which leads to lower prices and more choice for Canadian consumers
Through the IP Strategy, the government aims to foster a stronger IP culture in Canada across all parts of the innovation ecosystem
The leadership of public corporations is ultimately accountable to their shareholders for the decisions taken in advancing IP strategies

Background:

Launched in 2018, the National IP Strategy aims to make sure that Canadian businesses, creators, entrepreneurs and innovators have access to the best possible IP resources through IP awareness, education and advice, strategic IP tools for growth, and IP legislation.

IP awareness, education and advice initiatives under the strategy include:

The creation of a College of Patent and Trademark Agents to ensure that professional and ethical standards are maintained, and to support the provision of quality advice
An IP awareness and use survey to help understand how Canadians are using IP
The creation of an IP Centre of Expertise to provide IP advice to federal government program officers working with businesses, creators, and officials and boost IP engagement
Support to establish an IP Clinics Program in universities

Strategic IP tools for growth include: accelerated dispute resolution at the federal court on IP issues and expedited tariff setting by the Copyright Board (CB); an IP marketplace (ExploreIP) to provide one-stop web-based access to IP owned by Canadian governments and universities that can be bought or licensed; and a patent collective pilot program to enable firms to share IP expertise. Innovation Asset Collective (IAC), a not-for-profit organization, was selected to administer the patent collective with the purpose of assisting Canadian small- and medium-sized entreprises (SMEs) in the data-driven clean tech sector with their IP needs. IAC officially launched in 2020.

Legislative initiatives following the launch of the IP Strategy include:

The Budget Implementation Act, 2018, No. 2 (Bill C-86), which laid the foundation for the government's new financial consumer protection framework. It included amendments to key IP frameworks, including the Patent Act, Copyright Act, and Trademarks Act, that clarify acceptable practices and prevent misuses of IP rights. Most of these amendments are now in force
Amendments to the Copyright Act to comply with a commitment made under the Canada-United States-Mexico Agreement (CUSMA), namely, to extend the term of copyright protection to the lifetime of the author, plus 70 years (up from 50 years)
Bill C-47 amended the Patent Act to enable Canada to comply with a commitment made under CUSMA to provide patent term adjustments as compensation to patent applicants who experience unreasonable delays in the issuance of their patents. The government remains committed to ensuring patents are issued in a timely manner and will continue to support a robust and efficient patent system

In Budget 2021, the Government of Canada announced a Strategic Intellectual Property Program Review. The review, which is nearing completion, is intended as a broad assessment of IP provisions in Canada's innovation and science programming, from basic research to near-commercial projects. This work helps ensure Canada and Canadians benefit from innovations and IP. The Government also announced the creation of Elevate IP ($90M over two years) and IP Assist ($75M over three years) to help Canadian innovators, start-ups and technology-intensive firms access expert IP services.

To build on these investments, Budget 2022 provided:

$47.8 million over five years, starting in 2023-24, and $20.1 million ongoing to launch a new national lab-to-market platform to help graduate students and researchers take their work to market
$10.6 million over five years, starting in 2022-23, and $2 million ongoing to launch a survey to assess the government's previous investments in science and research, and how knowledge created at post-secondary institutions generates commercial outcomes;
$2.4 million over five years, starting in 2022-23, and $0.6 million ongoing to expand use of ExploreIP, so that more public sector intellectual property is put to use helping Canadian businesses
$0.8 million over five years, starting in 2022-23, and $0.2 million ongoing to expand the IP Legal Clinics Program, which will make it easier to access basic intellectual property services

Budget 2022 also announced the establishment of the Canadian Innovation and Investment Agency (now known as the Canada Innovation Corporation (CIC)) as a new, operationally independent organization to maximize business research and development (R&D) expenditures across all sectors to boost exports, improve productivity, and support the transition to a net-zero economy. The CIC will also support business investment in, and protection of, IP rights to help grow Canadian businesses in global markets. The Government released a statement on December 19, 2023, indicating that the full implementation of the Canada Innovation Corporation (CIC) would be undertaken no later than 2026-2027.

Budget 2024 proposes to provide $14.5 million over two years, starting in 2024-25, to Innovation, Science and Economic Development Canada (ISED) for the Innovation Asset Collective first launched in 2020. This initiative will continue to ensure that small- and medium-sized clean tech businesses benefit from specialized intellectual property support to grow their businesses and leverage intellectual property.

Securing Canada's global AI advantage

Key messages:

Artificial intelligence is one of the greatest technological transformations of our age and its Canadian ecosystem is among the best in the world
Budget 2024 proposes $2.4 billion to help secure Canada's AI advantage by investing in compute capacity and infrastructure, accelerating responsible and safe AI adoption and deployment and supporting workers through skills training
This budget will help spur innovation and drive economic growth
It will help businesses and researchers have the tools they need to harness the power of AI, while ensuring the technology is safe and benefits Canadians

Supplementary messages:

Budget 2024 outlined a series of measures to secure Canada's global AI advantage. These measures include:

Investing $2 billion to build and provide access to computing capabilities and technological infrastructure for Canada's world-leading AI researchers, start-ups, and scale-ups through a new AI Compute Access Fund and a Canadian AI Sovereign Compute Strategy
Boosting AI start-ups through $200 million in support from Canada's Regional Development Agencies
Investing $100 million in the National Research Council (NRC) AI Assist Program to help small and medium-sized businesses scale up and increase productivity by building and deploying new AI solutions
Supporting workers who may be impacted by AI, such as creative industries, with $50 million over four years for a Sectoral Workforce Solutions Program
Creating a new Canadian AI Safety Institute, with a $50 million investment, to further the safe development and deployment of AI
$3.5 million over two years to advance Canada's leadership role with the Global Partnership on Artificial Intelligence (GPAI)

Background:

The government has been making targeted, strategic investments for many years to ensure Canada can capitalize on the potential benefits of this technology.

With combined government investments of nearly $570 million, the Pan-Canadian Artificial Intelligence Strategy (PCAIS) made Canada the first country to launch a national AI strategy.

Canada has also held a leadership role internationally on AI, including through work with France to launch the Global Partnership on Artificial Intelligence (GPAI) in June 2020. Canada has continued to engage actively – and even take on leadership roles – in forums related to AI governance, including the G7 Hiroshima AI Process, the G20, the OECD (including its Working Party on AI Governance), the Council of Europe's Committee on AI, UNESCO, and the Freedom Online Coalition.

Canada's Artificial Intelligence and Data Act (AIDA), proposed as part of Bill C-27, the Digital Charter Implementation Act, 2022, is among the first proposed legislative frameworks in the world to regulate AI.

Canada's Voluntary Code of Conduct for the Responsible Development and Management of Advanced Generative AI Systems will enable Canadian companies to demonstrate that they are developing and using generative AI systems responsibly and strengthen Canadians' confidence in the technology.

Canada also recently consulted Canadians on the impacts of recent developments in AI on the creative industries, in order to consider whether any changes are required to appropriately balance copyright and technological development for an evolving Canadian economy.
The Government of Canada has published a guide to help federal public servants assess the risks associated with generative AI and use it responsibly during their day-to-day activities.

Canada is also at the forefront of global efforts to spur innovation and raise living standards in low- and middle-income countries using the power of AI through initiatives like the Artificial Intelligence for Development in Africa (AI4D).

Bill C-27/Digital Charter privacy reform

Key messages:

Canadians want to take full advantage of the latest technologies knowing that their personal information is secure and their privacy is respected
The Digital Charter Implementation Act (or Bill C-27) was designed to uphold trust in the handling of personal information and the development and deployment of cutting-edge AI technologies, as well as meaningfully advance Canada's Digital Charter
The Bill proposes to improve privacy protections for Canadians with special considerations for minors, encourage responsible innovation, and introduce a strong enforcement regime
It also proposes to create a new risk-based framework for AI systems in Canada and a new regulator to enforce the Act

Supplementary messages:

Actions proposed in Bill C-27 represent the most significant change to Canada's private sector privacy law in 20 years
This Bill proposes important steps to ensure Canadians will be protected by a modern law that keeps pace with today's technologies and sets clear rules for businesses to guide them as technology continues to evolve
The Consumer Privacy Protection Act and the Personal Information and Data Protection Tribunal Act – both of which are included in the Bill — will introduce significant new measures to better protect the privacy rights of Canadians, including special privacy protections for minors, heightened enforcement powers, and significant penalties for non-compliance, with funding in Budget 2023 for the Privacy Commissioner to implement this robust approach
Bill C-27 also proposes an Artificial Intelligence and Data Act which will regulate high-impact artificial intelligence (AI) systems, such as those that determine access to employment and healthcare, as well as guardrails to address the potential risks from general-purpose systems. The Government will be able to update it regularly via regulation in order to align with international partners and keep pace with the rapid development of AI technologies

Background:

In respect of privacy reform, Bill C-27 builds on legislation proposed in the previous session of Parliament under former Bill C-11 and addresses concerns raised by stakeholders with respect to that Bill. It proposes the creation of the Consumer Privacy Protection Act (CPPA), which would replace Part 1 of the existing Personal Information Protection and Electronic Documents Act (PIPEDA), and establishes the Personal Information and Data Protection Tribunal, strengthening Canada's privacy enforcement regime.

The CPPA is rooted in three core pillars:

Enhancing individual control by supporting meaningful consent, the right to request deletion of personal information and data mobility frameworks
Supporting strong enforcement and oversight by expanding powers for the Privacy Commissioner including order-making powers and ability to recommend penalties. The Commissioner can recommend administrative monetary penalties (AMPs) up to 3% of an organization's global revenue – or $10 million – for each contravention of the Act
Supporting innovation by providing exceptions to consent for collection and use of personal information necessary for business activities, internal research & development, clarifying rules for de-identified information and recognizing code of practices and certification programs to provide greater assistance and clarity for organizations to comply with the Act

Budget 2023 awarded $21 million over 5 years to the OPC to undertake more in-depth investigations of privacy breaches across public and private organizations, to improve response rates to privacy complaints from Canadians and operationalize new processes required to implement the Consumer Privacy Protection Act.

Bill C-27 also recognizes that the effectiveness of data protection is tied to the interoperability of Canada's privacy regime vis-à-vis domestic and international arrangements that support the transfer of data and knowledge. As such, it is drafted taking into consideration the interoperability of Canada's federal privacy regime with that of provinces such as Quebec's Law 25 and European Union's General Data Protection Regulation.

It also proposes the Artificial Intelligence and Data Act (AIDA), a new law that would make Canada a global leader in responsible artificial intelligence (AI) development and increase trust in the safety of AI systems used in Canada. Developers and deployers of high-impact or general-purpose AI systems would have to identify and mitigate risks of harm and biased output, and ensure appropriate testing and monitoring, among other requirements.

AIDA creates a new regulator, the Artificial Intelligence and Data Commissioner (AIDC) and sets out strong penalties and offences for noncompliance, including Administrative Monetary Penalties (AMPs). The Act is designed to be regularly updated via regulation, to keep up with the pace of technological development. Budget 2024 proposes $5.1 million in 2024-25 to stand-up the AI and Data Commissioner office.

AIDA is designed to be interoperable with international AI laws such as the EU's AIA, and is aligned with international principles and definitions, including those of the OECD.

The Bill was referred to INDU for study in April 2023 and the Committee commenced its study of the Bill in September 2023. Clause-by-clause study of the Bill started at INDU in April 2024.

Medicago

Key messages:

Medicago's expertise and world-leading plant-based technology platform will remain in Canada
Canada has reached an agreement with Medicago that includes recouping a $40 million payment to the Crown. It also ensures that Medicago's research and development (R&D) assets, intellectual property, technology platform, and expertise remain in Canada, through a transfer of these assets to a new Canadian company, Aramis
Aramis is a Canadian-owned company, founded by former employees of Medicago, that will continue to advance Medicago's technology platform in Canada
This agreement protects our interests and allows access to multiple vaccine technology platforms within Canada that could be mobilized to address future health emergencies

Supplementary messages:

The Government of Canada worked closely with Mitsubishi, Medicago's shareholder, and Medicago to protect Canadian interests and to meet three main objectives:
maintain Medicago's intellectual property and critical research assets in Canada
retain talent and expertise into a new Canadian company
identify third-party investors that could help retain Medicago's platform capabilities in-country
The Government of Canada's agreement with Mitsubishi successfully secured a repayment to the Crown and met all the government's objectives, maintaining key domestic capabilities in the Canadian ecosystem
This agreement delivers on the opportunity for Canada to retain a promising technology platform, made in Canada, that proved effective in developing an authorized vaccine for COVID-19

Background:

Medicago was the first and only Canadian-based company to receive market authorization for a COVID‑19 vaccine, having received authorization by Health Canada (HC) in February 2022. The vaccine is the product of years of scientific efforts that began with public science collaboration between Agriculture and Agri-Food Canada (AAFC) and the Université Laval in the late 1990s.

Over the years, Medicago established itself as an innovative global leader in plant-based vaccines, using living plants as bioreactors for the production of virus-like particles (VLP) for vaccines and antibody drugs. Its COVID-19 vaccine, Covifenz, is the world's first plant-based vaccine approved for human use, demonstrating similar safety and efficacy results compared to leading authorized vaccines at the time (71% average efficacy against circulating variants and 100% efficacy against severe disease and hospitalizations).

In October 2020, based on the expert advice of Canada's COVID-19 Vaccine Task Force (VTF) and following robust due diligence, which included financial and corporate reviews, the Government of Canada announced an investment of up to $173 million through the Strategic Innovation Fund (SIF) to help advance Medicago's VLP vaccine and biomanufacturing capabilities in Canada. At the time, there were no authorized vaccines against COVID-19, and Medicago represented the only Canadian-based company with the clinical and manufacturing capacity needed to develop a COVID-19 vaccine.

An additional contribution offer of $27 million was provided in March 2022 to support new capabilities and further advance the construction of the facility in Canada in view of rising costs, bringing the total authorized contribution to $200 million.

In March 2022, the World Health Organization (WHO) rejected Medicago's request to review an Expression of Interest for Emergency Use Listing of Covifenz due to the company's ties to tobacco giant Philip Morris International (PMI), citing the WHO Framework Convention on Tobacco Control. The decision was not based on the safety and efficacy of the product. At the time, PMI was a minority shareholder in Medicago. In December 2022, it divested the entirety of its shares in the company, making Mitsubishi Chemical Group Corporation (Mitsubishi) the sole shareholder of Medicago.

On February 3, 2023, Mitsubishi announced that it would cease operations of Medicago, citing significant changes to the global COVID-19 vaccine landscape and Medicago's challenges in transitioning to commercial-scale production. Medicago had been facing production challenges and supply chain issues that prevented its ability to commercialize its vaccine. These issues were compounded by increasing costs at a time when the COVID-19 vaccine market was rapidly changing.

The liquidation of Medicago's assets by Mitsubishi placed Medicago in default of its SIF agreement. A fast-moving resolution was needed to secure an agreement with Mitsubishi that would protect Canadian interests and maintain Medicago's expertise and know-how in Canada.

On December 8, 2023, the Government of Canada announced that an agreement with Mitsubishi and Medicago was reached to secure a payment of $40 million and enable the transfer of strategic research assets, including the technology platform, IP, and know-how, from Medicago to Aramis Biotechnologies (Aramis), a new Canadian company based in Quebec City under the leadership of former Medicago employees and the backing of a group of Quebec-based investors. Aramis is 100% Canadian-owned and has no ties to PMI or the big tobacco industry. Aramis will improve Medicago's technology platform and advance a pipeline of products.

A separate agreement has been reached between Medicago and Aramis to secure Aramis' ownership of the assets.

2024-25 Departmental Plan (Innovation, Science and Industry)

Key messages:

To sustain innovation and competitiveness across the country, Innovation, Science and Economic Development Canada (ISED) will continue prioritizing transformative investments in the Canadian economy to create more jobs, develop world class infrastructure and expertise, and position Canada as a leader in clean technology and innovation
As Canada transitions to a net-zero economy, a key priority for the Department is to support the growth of Canada's battery cells and electric vehicle (EV) manufacturing sectors through investments by the Strategic Innovation Fund (SIF)
The Department's Universal Broadband Fund (UBF) will continue to support the expansion of high-speed Internet to connect underserved rural, remote and Indigenous communities

Supplementary messages:

Innovation, Science and Economic Development Canada's (ISED) 2024–25 Departmental Plan outlines a number of key initiatives that the Department will undertake, including:
the Strategic Innovation Fund
the Biomanufacturing and Life Sciences Strategy
the Global Innovation Clusters
the Accelerated Growth Service
the Global Hypergrowth Project
the Pan-Canadian Artificial Intelligence Strategy (PCAIS)
the Strategic Science Fund
the Universal Broadband Fund
In particular, ISED will:
support the development of Canada's critical mineral economy across value chains and make significant investments in Canada's battery ecosystem and projects related to semi-conductors
continue to implement the Net-Zero Accelerator to support large-scale investments in clean technology solutions that will help transition Canada to a low-carbon economy
deliver funding through various public and private organizations to support Canada's biomanufacturing and life sciences sector to develop cutting-edge biomanufacturing capabilities and ensure domestic preparedness for pandemics and other health emergencies
continue to invest in programs such as the Global innovation Clusters to help businesses scale up and position Canada as a leader in innovation
provide targeted support to Canadian SMEs to help them become anchor firms and increase their ability to compete globally through programs such as the Accelerated Growth Service and the Global Hypergrowth Project
promote the adoption of Artificial Intelligence (AI) and support AI research and innovation to position Canada as a leader in quantum research and development through the PCAIS and the National Quantum Strategy
provide funding to the Strategic Science Fund to support fundamental and applied research in areas that are critical to the health, economic and social well-being of Canadians, including genomics, quantum technologies and AI
continue to provide financial and non-financial support to help reduce barriers to economic participation for under-represented entrepreneurs to enable them to start and grow their businesses
continue to advance the Government's commitment under the Universal Broadband Fund to connect 98% of Canadians to fast and reliable high-speed internet by 2026 and 100% by 2030, focusing on people and businesses in rural, remote and Indigenous communities

As part of the Refocusing Government Spending initiative, the government committed to the following spending reduction targets for ISED:

2024-25: $ 141.2 million
2025-26: $ 158.1 million
2026-27 and after: $ 313.7 million

To achieve this objective, ISED will be implementing three savings initiatives:

Operational efficiency savings: The department plans to generate savings of $24.3 million in 2024-25, increasing to $38.8 million by 2026-27 and after by reorganizing work to generate operational and administrative efficiencies and through attrition. Implementation of these savings is not anticipated to impact the delivery of programs and services
Temporary savings from Transfer Payment Programs (TPPs): To refocus government spending, the department will contribute $81.7 million from two temporary transfer payment programs. First, the department will fund the 2024-25 CANARIE program, estimated at $38 million, by leveraging available funding from the Digital Research Infrastructure Strategy, rather than accessing new funding. In addition, the department will reduce funding for the Canada Digital Adoption Program by $43.7 million in 2024-25
Permanent savings from TPPs: Beginning in 2025-26, ISED will return an amount of $11.4 million per year from the Canada Foundation for Innovation program to the fiscal framework and will reduce the overall funding envelope for the Strategic Innovation Fund by $38.2 million in 2025-26, increasing to $141.4 million in 2026-27 and subsequent years
In addition, the department is also committed to supporting government savings through the following initiatives:
Increased revenue: The department intends to contribute an additional $7 million in 2024-25 and 2025-26, and $52.1 million in 2026-27 and after to the fiscal framework through new or increased user fees for services providing benefits to specific enterprises, organizations or individuals
Rescaling of the Innovative Solutions Canada (ISC) Program: The department will implement the government's commitment to reduce spending on the ISC program by $28.2 million in 2024-25 and $70 million in 2025-26 and after. These savings will be achieved through reduced contributions to the programs from participating departments across the government. Allocation of the savings by department will be determined in the spring of 2024 and reflected through the government's supplementary estimates process

Background:

The 2024-25 Departmental Plan was tabled on February 29, 2024. The Departmental Plan outlines Innovation, Science and Economic Development Canada's (ISED) annual spending plan and describes priorities, planned results and associated resource requirements for a three-year period. It also provides details on human resource requirements.

In combination with the Main Estimates, Departmental Plans serve to inform members of Parliament about planned expenditures of departments and agencies, and support Parliament's consideration of supply bills. Ministers of departments are accountable for their Departmental Plans and must respond to questions on content and format.

The 2024-25 Departmental Plan is structured according to ISED's Departmental Results Framework (DRF) and its three core responsibilities:

Companies, investment and growth
Peoples, skills and communities
Science, technology, research and commercialization

Sustainable Development Technology Canada (SDTC)

Key messages:

Helping Canadian cleantech firms innovate and scale-up is essential to increasing the pace of clean economic growth, reducing emissions and creating prosperity for Canadians. Sustainable Development Technology Canada's support for pre-commercial cleantech has been instrumental to the success of Canada's cleantech sector
The Government of Canada is implementing measures to improve Sustainable Development Technology Canada's governance and oversight to increase transparency, accountability, and public confidence in its ability to continue delivering benefits to Canadians
SDTC was directed to suspend new funding decisions last October pending the implementation of a Management Response Action Plan and the results of an ongoing investigation of its HR practices and an audit by the Office of the Auditor General

Supplementary messages:

Since Sustainable Development Technology Canada's (SDTC) creation in 2001, it has invested more than $1.71 billion in over 500 companies that have generated $3.1 billion in annual revenues, created 24,500 jobs, the commercialization of 224 new technologies and reduced greenhouse gas emissions by 25 megatonnes of CO2 annually
SDTC's impact is equivalent to taking almost 7 million cars off the road every year
SDTC-funded companies receive global recognition and are consistently listed on the annual Global Cleantech 100 list, where Canada punches well above its weight

Background:

Oversight

Sustainable Development Technology Canada (SDTC) is an arm's length, not-for-profit foundation established by the Canada Foundation for Sustainable Development Technology Act in 2001.

SDTC is responsible for and has operational independence in administering the SD Tech Fund in accordance with terms and conditions set out in its funding agreement with the Crown. ISED manages payments to SDTC and oversees the administration of SDTC's contribution agreement to ensure that public funds are spent in accordance with the agreement and federal policies. This is done through various monitoring mechanisms, such as evaluations of SDTC's cash forecasts and third party audited financial statements, KPIs, and departmental evaluations and audits, among others.

Allegations and investigations

Following allegations of wrongdoing and HR issues brought forward by a whistleblower last year and subsequent findings in the Raymond Chabot Grant Thornton (RCGT) fact-finding report commissioned by the Minister of Innovation, Science and Industry, a Management Response Action Plan (MRAP) was put in place with SDTC in October 2023. The MRAP outlines actions for both the government and SDTC to undertake to address opportunities for improvement related to SDTC's governance, operations and oversight that were identified in the report. In addition to working with SDTC to implement the MRAP, ISED has put in place enhanced reporting requirements in relation to SDTC's use of funds and management of conflicts of interest. This will help restore public confidence in the SDTC's sound stewardship of public funds and ability to continue deliver on its mandate.

ISED has also worked closely with the Office of the Auditor General (OAG) on a performance audit of the Foundation. ISED will carefully consider the findings of the audit as well as the studies of the ETHI and INDU Committees, once available, in determining whether additional measures to strengthen governance and oversight are needed.

Funding delays

In light of the allegations, SDTC was directed to suspend new funding decisions last October, pending the implementation of the MRAP and the results of ongoing investigations and audits.

ISED has sought additional assurances from SDTC regarding project diligence and management of conflicts of interest, which has delayed the release of funding to SDTC for disbursements to existing projects. ISED and SDTC are working diligently to ensure that funding reaches companies in a timely manner going forward.

Funding allocation

Since SDTC's creation in 2001, the government has allocated approximately $2.1 billion in funding. SDTC was last recapitalized in 2020 with $750M, and will sunset in 2027-28.

	2023-2024	2024-2025	2025-2026	2026-2027	2027-2028	Total
Reference levels	190,515,306	191,380,819	162,055,039	100,562,746	73,552,453	718,066,363

In 2023-24, $190.5 million was allocated to SDTC, of which $139.2 million was disbursed by ISED to support operational costs and payments to projects. The lapse of $51.3 million was due, in part, to the direction to SDTC to suspend decision-making related to new project funding. ISED will seek approval to reprofile the lapsed amount in 2024-25.

Development of Elysis

Key messages:

The Government of Canada supports the development of promising technologies that create jobs for Canadians and ensure a healthier environment for future generations
Elysis is the aluminum industry's most significant innovation in a century, and it is happening here in Canada
While there is a global technology race, Elysis is already a world leader—a true net-zero technology that reinvents the fundamental chemistry of aluminum smelting
The government is investing in this technology that will drive sustainable economic growth and is a decisive step toward meeting Canada's climate goals

Supplementary messages:

Questions related to the project timeline are best addressed by the partner companies
As two of the world's largest market-based aluminum producers, Rio Tinto and Alcoa's partnership to develop and deploy Elysis is a historic collaboration to meet the existential challenge of our age
These partners have already made great strides in developing carbon-free aluminum
They are the first in the world to demonstrate this groundbreaking technology at scale and deliver real product-to-market
The government is confident of the partners' ability to rapidly meet the remaining challenges of large-scale deployment of the Elysis technology
Maintaining the global standing in aluminum is important given its critical component of our economy, Canada being the fourth largest aluminium producer in the world and aluminum contributing $3.45 billion to gross domestic product (GDP)

Background:

Elysis reinvents the chemistry of aluminum production, replacing traditional carbon anodes with inert anodes made of a proprietary ceramic-based material. Along with a new smelting-pot design to balance production flows, the technology removes all carbon from the chemical process, producing only oxygen as an output.

Decarbonization

Once fully adopted, the Elysis technology could reduce Canada's emissions by nearly 7 million tonnes annually while improving operating costs and production capacity. Development continues at the Elysis Industrial Research and Development Centre in Saguenay, Quebec (established with Strategic Innovation Fund (SIF) support) and Alcoa's Technical Center in Pittsburgh.

Employment

Regarding job creation, the Elysis project supports building out the Canadian aluminum industry's workforce. The project created 200 new jobs as part of the Joint Venture and will help maintain the 10,000 existing jobs along Canada's aluminum supply chain over time. It is expected to create 1,000 additional jobs by 2030, related to greenfield and conversion activities for smelters that adopt the technology.

Project progress

In 2018, the government announced a $60 million SIF investment in the project, with matching support from the Government of Quebec. In 2021, the government announced an additional $20 million SIF investment in the project (matched equally by Quebec), which brought each government's support to $80 million. This project, like many, experienced delays due to the COVID-19 pandemic, and the contribution agreement may be amended to reflect a new project completion date, and/or revised spending per year. While the Elysis has met its deadlines to date, the complexity of developing the supply chain for anodes and cells will add additional challenge to the originally envisioned deployment dates.

Memorandum of Understanding

In June 2023, Rio Tinto and Minister Champagne concluded a memorandum of understanding between the company and Innovation Science and Economic Development Canada. The MOU lays out a strategic path towards the deployment of Elysis. The partners are also working on an adoption plan at Arvida, Quebec with the potential for an Elysis deployment that will run continuously to demonstrate the technology's viability.

Summary of Mr. Jérôme Pécresse's Appearance at the Standing Committee on Industry and Technology (INDU) on April 17, 2024.

Pursuant to the motion adopted on March 18, 2024, Mr. Pécresse appeared before INDU on April 17, 2024, to answer questions about Elysis development:

In his opening statement, Mr. Pécresse summarized the Elysis project and its development, clarifying that it has not exceeded its initial budget, as the motion claimed. Mr. Pécresse reclarified later that the motion's claims were inaccurate and confirmed the project had not faced cost overruns. He also shared that the iterative nature of projects like Elysis necessitates trial and error that could require additional, unanticipated testing.

Mr. Pécresse affirmed that Elysis development is happening in the Saguenay—Lac-Saint-Jean region and that Elysis will support Rio Tinto's decarbonization plans. When asked about the technology demonstration, Mr. Pécresse confirmed the technology status as proven at scale. He avoided providing specific development details and stated that Elysis aims to demonstrate the technology at a large commercial scale. When asked how many more piloting phases remain before full scale-up, Mr. Pécresse stated they have at least two more successive plans of piloting, requiring additional hundreds of millions of dollars.

Regarding Elysis development timelines, Mr. Pécresse clarified that, given its commercially sensitive nature, it is challenging to provide a status update. He also shared that the project was on track with its original public timelines. Asked about the impacts of Elysis implementation on employment, Mr. Pécresse was not comfortable articulating exact numbers considering the many unknowns remain with the technology's deployment. He noted, however, that Elysis is hiring scientists on a quarterly basis to advance development.

When asked how much of the $80 million in SIF funding supported Elysis deployment, Mr. Pécresse clarified that deployment does not refer to commercial deployment but to deploying and piloting the technology within Rio Tinto and Alcoa's research operations. When asked about the use of the $80 million in SIF funding, Mr. Pécresse provided a list of expenditures. This list included hiring employees, facility construction, development of the electrolysis pots, anodes and cathodes, and equipment for electrolysis pot testing. Regarding the share of total funds spent on Elysis, Mr. Pécresse stated that 70 percent has come from the Elysis joint venture and 30 percent from federal and provincial government funding.

Mr. Pécresse was asked if there is any stipulation in their SIF contribution agreement that prevents Rio Tinto from using Elysis intellectual property (IP) in other smelters globally. He stated he understood that they were able to do so. Mr. Pécresse was also asked if anode manufacturing will take place in Quebec, too, and he said he believes it would make sense for that to take place; however, no public announcement has been made.

Investment Canada Act

Key messages:

Foreign investments encourage economic growth, innovation and employment opportunities in Canada
While continuing to welcome foreign investment, the Government of Canada is modernizing the Investment Canada Act to protect Canada's economic prosperity and strengthen its ability to act decisively when investments threaten national security
Bill C-34, which received Royal Assent on March 22, 2024, will enhance transparency and efficiency in the Investment Canada Act national security review process
Once in force, this will represent the most significant update of the Investment Canada Act since 2009 and will ensure that Canada is able to address evolving threats that can arise from foreign investment

Supplementary messages:

National security

In March 2021, the Government of Canada updated the Investment Canada Act (ICA) national security guidelines to address concerns related to investments involving sensitive technology areas, sensitive personal data and critical minerals, as well as investments by state-owned and state-influenced investors
In August 2022, the government introduced a voluntary mechanism that allows foreign investors making certain types of investments not otherwise required to make a filing under the ICA to do so
In December 2022, the government introduced Bill C-34, An act to amend the Investment Canada Act, as part of the Minister of Innovation, Science and Industry's mandate to modernize the ICA to address changing threats that can arise from foreign investment
The government's actions are based on facts and evidence, and the advice of Canada's security and intelligence agencies and responsible government departments

Critical minerals

When an investment involves critical minerals, factors for consideration can include the nature of the mineral deposits involved and its role in critical Canadian supply chains, as well as the nature of the Canadian business and whether it has operations in Canada

Background:

The Investment Canada Act (ICA or "the Act") provides for the net benefit review of significant foreign acquisitions of control of non-cultural businesses by the Minister of Innovation, Science and Industry (ISI), as determined by a monetary threshold based on the value of the Canadian business. In 2023, the thresholds are: $1.287 billion in enterprise value (EV) for private-sector investors from World Trade Organization (WTO) members; $1.931 billion in EV for investors with whom Canada has a free trade agreement (i.e., Australia, Chile, Colombia, the European Union, Honduras, Japan, Mexico, New Zealand, Panama, Peru, Singapore, South Korea, the United States, the United Kingdom and Vietnam); and $512 million in asset value for state-owned enterprise investors from WTO members. Proposals are assessed according to the net benefit factors listed in section 20 of the Act. The net benefit review process can last 75 days, or longer with the consent of the Minister of Innovation, Science, and Industry (ISI) and the investor. Five applications for net benefit review were approved in fiscal year 2022-23. Another 1,005 notifications, which are not subject to net benefit review, were certified during the fiscal year. The Minister of Canadian Heritage is responsible for net benefit reviews of cultural businesses, which are reported on separately and subject to different net benefit review thresholds.

The Act also provides for the national security review of all foreign investments. This process is undertaken in consultation with the Minister of Public Safety and Canada's national security and intelligence agencies. If each stage of the process is engaged, a national security review can last 200 days, or longer with the consent of the Minister of Innovation, Science and Industry and the investor. In fiscal year 2022-23, all 1,010 investment filings, as well as additional investments in Canada by non-Canadians, were reviewed for its potential to harm Canada's national security. Twenty-two investments resulted in a section 25.3 order for national security review by the Governor in Council. Of these, ten required no further action, eight were withdrawn by the investor and three resulted in a final section 25.4 Governor in Council order: three requiring the non-Canadian to divest or wind-up the Canadian business.

The Minister of Innovation, Science and Industry published Guidelines on the National Security Review of Investments, which include a non-exhaustive list of factors that are considered in assessing the national security risks of a transaction and information on how to engage the regulatory process. The guidelines were updated in March 2021 to identify sensitive technology areas, sensitive personal data, and critical minerals as additional factors for consideration. The guidelines also indicate the enhanced scrutiny for all investments by state-owned enterprises and private investors assessed as being closely tied to or subject to direction from foreign governments.

The Minister of ISI published the Policy Statement on Foreign Investment Review and the Ukraine Crisis in March 2022. The statement advises foreign investors and Canadian businesses that investments by Russian investors will be found to be of net benefit to Canada under only on an exceptional basis. In addition, any investments controlled by or subject to influence by the Russian state will also support a determination by the Minister ISI that there are reasonable grounds to believe such an investment could harm Canada's national security.

Main estimates 2024-25 for Social Sciences and Humanities Research Council (SSHRC)

Key messages:

The Social Sciences and Humanities Research Council (SSHRC) is the federal research funding agency that promotes and supports research and research training in the humanities and social sciences—disciplines that range from economics to psychology to history
SSHRC also administers approximately $1.2 billion in tri-agency program funding on behalf of the other federal research funding agencies. This does not fully appear in SSHRC's reference levels as funding related to the natural sciences and engineering or the health sciences flow through their respective granting agencies
SSHRC's 2024-25 Main Estimates amount to $1.2 billion, which includes $1.15 billion in grants and $44.2 million in operating expenditures. This total amount represents a net increase of $42.6 million from the previous year's main estimates
The $1.15 billion in grant authority includes three components of SSHRC's mandate:
- $364 million are for the delivery of grants and scholarship programs to support researchers and trainees in the social sciences and humanities. With grants to researchers, fellowships and scholarships for students, and partnerships with community stakeholders, SSHRC advances knowledge and understanding of people and society, and contributes to a better future for Canada and the world
- $332 million are for the delivery of several highly prestigious, globally recognized programs on behalf of the three federal research funding agencies, such as the Canada Excellence Research Chairs Program, the New Frontiers in Research Fund, and Canada Research Chairs, among others. These programs cross all academic disciplines and drive Canadian research excellence and impacts
- $452 million for the Research Support Fund, which provides financial support to universities, colleges and their affiliated research hospitals and institutes to reimburse a portion of indirect costs associated with the funded research, such as maintaining labs and equipment, securing research from threats, and providing administrative support

Supplementary messages:

SSHRC is pursuing, in collaboration with the other federal research funding agencies and key stakeholders, a number of priorities that are enriching Canada's research ecosystem. Some of the chief areas where SSHRC, the Natural Sciences and Engineering Research Council of Canada (NSERC) and the Canadian Institutes of Health Research (CIHR) are making considerable progress together include:
- creating a tri-agency strategy to advance research training, for people in all sectors, in order provides an essential foundation for Canada's ever-growing knowledge-based society and economy
- ensuring research excellence through equity, diversity and inclusion (EDI) initiatives and the engagement of early-career researchers in the research enterprise
- advancing reconciliation through strengthening Indigenous research capacity
- promoting high-risk / high-reward, rapid response, interdisciplinary international research
- We are also working with other government departments in Canada and internationally on issues of global importance, such as research to promote sustainable agriculture and mitigate the effects of climate change
- SSHRC grant and scholarship applications are submitted through eligible post-secondary institutions and awarded through a competitive process of independent merit review designed to ensure the highest standards of excellence and impartiality in the selection process

Supporting facts and figures:

The net increase of $42.6 million from the previous year's Main estimates is attributable to:
- An increase of $36.0 million from Budget 2021 for a reprofile of the Canada Biomedical Research fund
- An increase of $6.6 million from Budget 2014 for the Canada First Research Excellence Fund, to help post-secondary institutions excel globally in research areas that create long-term economic advantages for Canada
- An increase of $5.7 million from Budget 2008 for the adjusted distribution of the Canada Excellence Research Chairs program between the three granting agencies
- An increase of $4.7 million from Budget 2022 for the Sustainable Agriculture & Agri-Food Innovation in a Net Zero Economy program to support university researchers in developing technologies and crop varieties that will allow for net-zero emission agriculture
- An increase of $3.1 million for the College and Community Innovation program, transferred from the Natural Sciences and Engineering Research Council to increase innovation through partnerships between Canadian colleges, universities, and local companies
- A decrease of $8.4 million from Budget 2021 for the Race, Gender, and Diversity Partnership program
- A decrease of $2.9 million from Budget 2019 for the adjusted distribution of the Canada Graduate Scholarships between the three granting agencies
- A decrease of $1.4 million from Budget 2023 to reduce government expenditures in professional services and travel
- In 2022-23, SSHRC invested $125 million to directly support more than 4,800 students through scholarships and fellowships. An additional $431 million investment directly supported more than 11,000 researchers through grants at postsecondary institutions across Canada, which included $72 million that supported students indirectly. Researchers often use their grants to engage students at various levels in their research project
Regarding SSHRC's operating expenditures ($44.2 million estimated for 2024-2025):
- It's important to note that SSHRC shares with the Natural Sciences and Engineering Research Council (NSERC) a Common Administrative Services Directorate that oversees key corporate services for both agencies, including information technology, human resources and financial operations
The tri-agency research funding programs administered by SSHRC ($332 million estimated for 2024-2025), include:
- $124 million for the New Frontiers in Research Fund which supports world-leading interdisciplinary, international, high-risk / high-reward, transformative and rapid-response Canadian-led research in areas such as climate change mitigation and adaptation, artificial intelligence and cancer treatment
- $74 million for the Canada Biomedical Research Fund which was originally announced in Budget 2021 as part of Canada's Biomanufacturing and Life Sciences Strategy and is designed to help ensure Canada is prepared for future pandemics by increasing domestic capacity through investments and partnerships across the academic, public, private and not-for-profit sectors to produce life-saving vaccines and therapeutics
- $68 million for the Canada Research Chairs Program which is designed to attract and retain a diverse cadre of world-class researchers, to reinforce academic research and training excellence in Canadian postsecondary institutions
- $60 million for the Canada First Research Excellence Fund which aims to boost the strengths of Canadian postsecondary institutions so they can achieve global success in research areas that create long-term social and economic advantages for Canada
- $5 million the Canada Excellence Research Chairs Program which aims to attract Canadian and international leading scientists and scholars who can positively contribute to Canada's global competitiveness and well-being, and to help Canadian institutions compete in the global market for research talent

Main estimates 2024-2025 for Natural Sciences and Engineering Research Council (NSERC)

Key messages:

As Canada's largest funder of science and engineering, the Natural Sciences and Engineering Research Council (NSERC) supports the work of the best and brightest researchers, students and postdoctoral fellows at universities, colleges, CÉGEPs and polytechnics across the country
NSERC supports research that advances the prosperity and quality of life of Canadians and connects this research to key partners in the private, public and not-for-profit sectors through its partnership initiatives
NSERC's 2024-25 main estimates amount to $1.38 billion, which includes $1.3 billion in grants and $58.6 million in operating expenditures. This total amount represents a net increase of $65.8 million from the previous year's main estimates
NSERC's grants, in the form of scholarship and fellowship programs, play a critical role in expanding, diversifying and nurturing the talent pool that our collective well-being, environment and economy relies on
NSERC actively works to enhance the profile of Canadian research through national and international partnerships and promotional activities
NSERC's new strategic plan, NSERC 2030: Discovery, Innovation, Inclusion, presents a vision for an agile agency that is steadfast in its support for investigator-driven discovery research while enabling quick responses to emerging Canadian research priorities
NSERC works closely with the Social Sciences and Humanities Research Council of Canada (SSHRC) and the Canadian Institutes of Health Research (CIHR) to ensure harmonization of our funding programs and to deliver some of Canada's key research funding and research support programs, including flexible programs that support innovative interdisciplinary research

Supplementary messages:

NSERC is pursuing, in collaboration with the other federal research funding agencies and key stakeholders, a number of priorities that are enriching Canada's research ecosystem. Some of the chief areas where NSERC, SSHRC and CIHR are making considerable progress together include:
- creating a tri-agency strategy to advance research training, for people in all sectors, in order to provide an essential foundation for Canada's ever-growing knowledge-based society and economy
- ensuring research excellence through equity, diversity and inclusion (EDI) initiatives and the engagement of early-career researchers in the research enterprise
- advancing reconciliation through strengthening Indigenous research capacity
- promoting high-risk / high-reward, rapid response, interdisciplinary international research
- NSERC is also working with other government departments in Canada and internationally on issues of global importance, such as research to promote sustainable agriculture and mitigate the effects of climate change
- NSERC grant and scholarship applications are submitted through eligible post-secondary institutions and awarded through a competitive process of independent merit review designed to ensure the highest standards of excellence and impartiality in the selection process

Supporting facts and figures:

The increase of $65.8M is explained by:
- $35.9M in top-up funding for the College & Community Innovation program. As announced in Budget 2023, this aims to increase innovation through partnerships between Canadian colleges, universities and local companies
- $18.9M in new funding for Sustainable Agriculture & Agri-Food Innovation in a Net Zero-Economy. Budget 2022 provided $100 million over six years, starting in 2022-23, to the federal granting councils, specifically NSERC and SSHRC, to support university researchers in developing technologies and crop varieties that will allow for net-zero emission agriculture
- $14.9M in top-up funding from Budget 2022 for the Canada Excellence Research Chair program (CERC). This Tri-Agency initiative involving the federal granting councils is to award grant funding to successful Canadian post-secondary institutions as a result of the 2022 competition of the CERC
- $9.8M for the new Lab-to-Market program which support post-secondary institutions and their affiliates in creating and sustaining networks dedicated to developing and delivering entrepreneurial skills training, as announced in Budget 2022
- $5.6M as a result of new Collective Agreements funding
- Partially offset by:
- $17.8M decrease due to adjustments required by the Canada First Research Excellence Fund, ensuring alignment of the budget with the distribution of awards across the three federal granting agencies
- $1.5M decrease as part of Budget 2023 Refocusing Government Spending Reductions

Main estimates 2024-2025 for the Canadian Space Agency (CSA)

Key messages:

The Canadian Space Agency's (CSA) main estimates for 2024-25 total $414M, which represents an overall decrease of $123.4M compared to last fiscal year
The CSA's decrease in spending is primarily due to a reduction in approved reference levels for Canadarm3 ($150.6M), however, additional funding for this initiative is expected to be accessed in the upcoming years. This decrease also reflects the CSA's 2024-25 contributions to the Refocusing Government Spending exercise ($11.1M)
These decreases are partially offset by $52.6M in funding from Budget 2023 to extend Canada's participation in the International Space Station through 2030
By confirming its participation in the ISS, Canada secured a new flight for a CSA astronaut to the Station and sustained access to this unique microgravity environment for new Canadian science
CSA's Key Priorities are to continue:
- Advancing Canada's Lunar program, including developing an advanced robotic system (Canadarm3) and rovers, fostering scientific partnerships, sending Canada's first astronaut around the Moon on the Artemis II mission, and continuing to develop technologies that can support long-duration spaceflight
- Improving the use of space-based data to support Canada's sustainable development ambitions, including developing and operating satellites that acquire Earth observation data to support key challenges like wildfires
- Positioning the Canadian space ecosystem for prosperity by supporting space capacity development and strengthening collaboration across Canada's space ecosystem through strategic procurements, grants and contributions, and access to infrastructure and expertise

Supplementary messages:

The CSA carried out a comprehensive review of its activities and initiatives to identify a set of spending reduction measures to contribute to the Refocusing Government Spending exercise
The $11.1M in spending reductions this fiscal year will come from:
- reduced travel and discretionary activities involving professional services
- efficiencies in space operations
- decreasing investments in capacity development and preparation of future missions
- ceasing operations and disposal of David Florida Laboratory (DFL) by March 31, 2025
- The CSA was required to contribute to the Refocusing Government Spending effort. Expenditure reviews are an integral part of sound and responsible management, and we all have a role to play in finding ways to achieve the best possible results for Canadians
- The CSA used this exercise as an opportunity to ensure its budget is focused on organizational priorities and those of the government
- The CSA remains focused on delivering on its core mandate while maximizing its resources, developing its capacity, and showcasing its leadership in the thriving space sector
- The difficult decision to cease DFL operations is based on the conclusions of past evaluations and the strategic review of operations
- All decisions were taken with due consideration for CSA's financial capacity, the major crown projects and initiatives CSA is currently undertaking, as well as the evolution of the space sector as a whole

Supporting facts and figures:

Breakdown of CSA's 2024-25 main estimates

$242.3M, or 59%, will pay for CSA's Operations
Of this, 36% will cover the salary costs of 880 FTEs and 64% will cover operating and maintenance costs such as professional and special services, transportation and communications, and acquisition of machinery and equipment
$79.5M, or 19%, is for Grants and Contributions to support a variety of programs

CSA – Listing of the 2024-25 transfer payments
Grants
Class Grant Program to support research, awareness and learning in space science and technology	$14,135,000
Contributions
Contributions to the Canada/European Space Agency Cooperation Agreement	$38,969,000
Class Contribution Program to support research, awareness and learning in space science and technology	$26,364,000
CSA total	$79,468,000

$80.1M, or 19%, is for Capital, which is mainly used for the development of Canadian satellite systems, payloads, instruments or other components provided to domestic and foreign satellites
$12.2M, or 3%, is Statutory funding to cover CSA personnel benefit plans (superannuation, Canada Pension Plan, Employment Insurance)

Details on David Florida Laboratory closure

The David Florida Laboratory's (DFL) facility is underutilized with declining usage and revenues which carries considerable operational costs. In addition, due to its age, considerable re-investments were anticipated within the next decade, making a review of its current feasibility timely
The most recent evaluation of the CSA's Qualifying and Testing Services Program (conducted in 2014, titled "Evaluation of the Qualifying and Testing Services Program for the Canadian Space Agency") identified evidence that:
The DFL is persistently underutilized
The level of demand for DFL services is decreasing over time because of the space industry trend towards smaller satellites and increased in-house testing
To maintain services at the DFL, the CSA would need to make sustained – and increasing – investments in building and test equipment upgrades and human resources

Main estimates 2024-25 for Statistics Canada

Key messages:

The 2024-25 main estimates for Statistics Canada (StatsCan) total $736.6 million, an increase of $204.5 million (+38.4%), compared to last year's main estimates
Statistics Canada's (StatsCan) budget is cyclical. It peaks in years when the census is collected and decreases in the years between censuses. As such, nearly half of the increase in the 2024-25 main estimates is due to $83.3 million in new funding from Budget 2023 to support the 2026 Censuses of Population and Agriculture
Statistics Canada (StatsCan) made investments in recent years to integrate cutting-edge tools and technologies to improve its operations and services, supported by the enterprise-wide cloud infrastructure that also saw an increase of $33 million. The agency's strategic plan, guided by modernization objectives, aims to ensure that statistical programs are relevant, improve operations, and empower a diverse and high-performing workforce

Supplementary messages:

Statistics Canada Key priorities

Advance the next generation of statistical programs and operations
Adopt a complete enabling infrastructure
Shape a healthy, diverse and skilled workforce to meet the current and future needs of Canadians

Highlights of Statistics Canada's strategic plan

The plan was developed to guide Statistics Canada (StatsCan) in a rapidly changing environment to continue to meet Canadians' evolving needs for trusted data, while leveraging cutting-edge tools for top-quality statistics. The focus on modernization and ongoing improvements will guide the agency's planning for the next Census of Population, measuring economic growth, tracking food prices and understanding the diverse factors that affect the well-being of Canadians.

Statistics Canada (StatsCan) is also guided by external advice from groups such as the Canadian Statistics Advisory Council, the Federal-Provincial-Territorial Consultative Council on Statistical Policy, and many other Advisory groups such as the Advisory Council on Ethics and Modernization of Microdata Access, who provide expertise on a wide variety of topics. The recommendations issued by this robust set of committees reinforces the independence, relevance, and quality of the national statistical system.

The Canadian Statistics Advisory Council released its fourth annual report in 2023, The Way Forward: Addressing Challenges Facing the National Statistical System. It underscores how the national statistical system is essential for helping Canadians keep pace with a rapidly changing society. The report provides four main recommendations to the Minister of Innovation, Science and Industry and the Chief Statistician:

Engage Canadians and policy makers in a modern national statistical system
Invest in data science and analytical skill
Develop innovative data flows
Recognize the role of data stewardship

Supporting facts and figures:

2024-25 main estimates

The 2024-25 main estimates for Statistics Canada (StatsCan) totals $736.6 million, an increase of $204.5M, or +38.4%, compared to last year's main estimates
The increase of $204.5 million is explained by:
$83.3 million in new funding from Budget 2023 to support the planning, design, development and testing of the 2026 Censuses of Population and Agriculture. Under the Statistics Act, the agency is required to conduct these censuses every five years
$66.7 million as a result of new collective agreements funding
$33.3 million to sustain Statistics Canada's cloud operations, with the expectation that an enterprise-wide cloud funding model will be established for the Government of Canada
$11.0 million in new funding from Budget 2023 to collect data on oral health and access to dental care in Canada, which will inform the rollout of the Canadian Dental Care Plan
$9.1 million in new funding from Budget 2023 to support the World-Class Health Data System for Canadians
$5.3 million increase related to other minor changes
Partially offset by:
- $4.2 million decrease as part of Budget 2023 Refocusing Government Spending Reductions
The budget breakdown by vote is:

Operating – vote 1	Statutory	Total main estimates
$648.2M	$88.4M	$736.6M

As part of the main estimates:

88%, or $648.2 million, pays for the operations of the organization
83% to cover the salary costs of 5,633 employees and 17% to cover operating and maintenance costs such as professional and special services, rentals, information, transportation and communications, and acquisition of machinery and equipment
There are also an additional 1,190 employees for which salaries are covered by revenues, bringing the total number of employees to 6,823
Statistics Canada (StatsCan) has the authority to generate $120 million in revenues. A large portion of these revenues comes from federal departments to fund specific statistical projects that are not met by the core statistical programs. For example, through this authority, Statistics Canada (StatsCan) enhances the sampling of the labour force survey as part of the cost-recovery services provided to Employment and Social Development Canada (ESDC), one of the largest clients in terms of cost-recovery services
12%, or $88.4 million, is Statutory funding to cover the public service benefit plans (Superannuation, Canada Pension Plan, and Employment Insurance)

Main estimates 2024-25 for National Research Council (NRC)

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The National Research Council (NRC) is the largest federal research organization, focusing on advancing scientific and technical knowledge; supporting business innovation; and providing science-based policy solutions for the government. The NRC's presence spans 24 locations nationwide
The NRC's current strategic priorities are to advance research and innovation with the greatest impact to Canada and Canadians. These areas include:
- climate change and sustainability
- health and biomanufacturing
- digital and quantum technologies
- continued role in support of foundational research
- In Budget 2023, the government committed to reducing spending by $14.1 billion over the next five years, starting in 2023-24, and by $4.1 billion annually after that
- To help meet this commitment, the NRC is planning the following spending reductions:
  - 2024-25: $10,443,461
  - 2025-26: $14,928,288
  - 2026-27 and after: $21,064,962
- The NRC will achieve these reductions by doing the following:
  - enhancing the value of revenue generating activities
  - ongoing modest adjustments in the management of the workforce
  - reducing the envelope of grants and contributions funding available
  - continuing to review expenditures for travel and professional services and

For certainty, IRAP has not been reduced.

Supplementary messages:

The NRC offers small- and medium-sized enterprises funding, and access to advanced resources and expertise, enabling them to test new products and grow their research and development knowledge to improve goods and services processes for Canada.
The NRC's scientists, engineers and business experts partner with universities, colleges and Canadian industry to help take research and technologies from the lab to the marketplace

Main estimates

Parliamentary approval for new fiscal year funding requirements will be sought through the 2024-25 main estimates
The NRC's main estimates of $1,595.1M for fiscal year 2024-25 include $1,345.1M in voted appropriations and $250.0M in statutory appropriations ($182.0M in statutory revenue and $68.0M in EBP). The NRC's 2024-25 main estimates increased from the 2023-24 main estimates by $46.7M

Renewing NRC facilities

The NRC manages more than 118 large-scale facilities spanning diverse fields, from ocean engineering to life sciences and astronomy
A 2023 review of these facilities led to prioritized investments for essential upgrades.
The first wave of projects is moving forward. Projects are at various stages of development with some holding meetings with industry, some breaking ground on construction, and others finalizing design plans, procuring equipment and requests for proposals
In November 2022, the Government of Canada invested $962 million over eight years, and $121 million ongoing, to modernize the NRC's facilities
Initial projects from this investment range from: hydrogen-safe labs working on fuel cells in Vancouver; to replacing its Convair aircraft supporting research and testing related to aerospace, satellites, air quality, defence, green aviation and climate resilience; to its Canadian Photonics Fabrication Centre in Ottawa, supporting semiconductor fabrication
These estimates also reflect that Canada, through the NRC, recently achieved full membership in the Square Kilometre Array Observatory (SKAO). It will enable Canadian researchers to help build a next-generation radio astronomy facility as part of a broad international partnership and participate at the leading edge of astronomy and astrophysics – enabling discoveries that will revolutionize our understanding of the Universe

NRC 2024-29 strategic plan

The NRC's 2024-29 strategic plan gives special attention to how we can better support our industry clients and help them realize the economic potential of Canadian innovations. At the same time, NRC will maintain its enduring commitment to research excellence, which is at the heart of its mandate and ambition
The strategic plan also emphasizes the health and safety of employees, collaborators and clients and recognizes the value diverse perspectives bring to shaping and delivering its work

Supporting facts and figures:

Research and development infrastructure – Increase of $49.3M
The NRC will receive $121.0M of funding in 2024-25 (an increase of $49.3M) in support of a capital revitalization plan to modernize the NRC's R&D facilities
SKAO Initiatives – Increase of $40.7M
The NRC will receive $40.7M of funding in 2024-25 for its participation in the Square Kilometre Array Observatory (SKAO). This provides the opportunity for Canadian companies to contribute to building aspects of the international facility and will give Canada's astronomy researchers access to the tools and data they need to be at the leading edge of their science
Collective bargaining and EBP adjustments – Increase of $25.3M
The NRC received an ongoing funding increase for MGT, RO/RCO, FI and PE Collective bargaining in the amount of $33.3M. The NRC's EBP funding was adjusted resulting in a decrease of $8.0M in 2024-25 and ongoing
Thirty Meter Telescope – Decrease of $20.8M
Some of the Thirty Meter Telescope funding and associated reprofiles sunsetted in 2024-25, resulting in a decrease of $20.8M in 2024-25
NRC IRAP IP Assist – Decrease of $36.2M
Some of NRC IRAP's IP Assist funding and associated reprofiles sunsetted in 2024-25, resulting in a decrease of $36.2M in 2024-25
Refocusing Government Spending – Decrease of $10.4M
A decrease of $10.4M in 2024-25 detailed in the table below from the Refocusing Government Spending initiative as announced in Budget 2023. The values for 2025-26 and 2026-27 are also included for information purposes

Appearance before the Standing Committee on Industry and Technology (INDU) by the Minister of Innovation, Science and Industry - May 8, 2024

ISI Portfolio – Financial figures at a glance

B24 – Top areas of new investment (not yet reflected in 2024-25 main estimates)

2024-25 main estimates

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Telecom pricing

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Rural and remote broadband

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Spectrum costs

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Food price stabilization

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Competition policy reform

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Battery plant investments

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Canadian Critical Minerals development

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Modernization of the Research Support System

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Federal government support for science and research

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Intellectual Property Strategy

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Securing Canada's global AI advantage

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Bill C-27/Digital Charter privacy reform

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Medicago

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2024-25 Departmental Plan (Innovation, Science and Industry)

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Sustainable Development Technology Canada (SDTC)

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Development of Elysis

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Investment Canada Act

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Main estimates 2024-25 for Social Sciences and Humanities Research Council (SSHRC)

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