First, customer focus.
A new director general,
Norine Heselton, has taken charge of the program.
She's not a scientist and
she's not an accountant -- she's some of both, and more.
She's a businessperson, with
more than 30 years of experience in the high-tech and telecommunications fields.
We're also implementing an
account executive management model.
This will improve service,
reduce paper burden and enhance predictability and consistency.
Under this approach, all
participating companies have already or will soon be assigned a science advisor
who will be well versed in their assigned company's particular field of
research.
We're also taking positive
steps to streamline basic procedures, through the development of work plans and
new risk management tools.
To improve certainty, we
introduced the preclaim project review service.
This service is designed to
provide greater certainty on whether projects and expenditures will meet the
SR&ED program requirements before a project is started or while it is
underway.
I'm very happy to report that
we are seeing the results of our efforts.
We have now reduced our
inventories of SR&ED claims to workable levels.
Our commitment is to provide
cash refunds within 120 days.
In Quebec, that is an
improvement of almost 20 per cent over last year's average claim processing
period of 142 days.
And if we can do better, we
will.
In another initiative, we're
implementing the national technology sector specialists program.
Through this program,
technical experts with industrial R&D experience will work on individual
industry sectors.
In this way, we will have
people on board with a rich understanding of sectors from a business
perspective.
These sector specialists will
assist Revenue Canada's field staff in providing them access to experts who
understand the needs of different industries.
These experts will also
develop strategies to ensure the standardized application of criteria and the
fair treatment of business clients.
Consultation
Now, I'd like to describe how
the program is becoming more consultative.
As you know, we created an
Action Plan Steering Committee, made up of 11 representatives from industry,
immediately after the Building Partnerships conference.
Its role is to guide and
monitor our progress on the Action Plan.
In addition, all the major
industrial areas have formed sector specific committees.
These committees are now
developing issue sheets that clarify eligibility matters, address documentation
requirements and provide interpretation guidelines for each of their individual
sectors.
We are also working with the
Steering Committee on ways to ensure consistency in claim reviews and to improve
dispute resolution.
Through the consultative
process, the development of customisation and consistency will go a long way in
making the rules clear for everyone.
Communications
The third area we've given a
lot of attention to is communications and we are making progress there too.
You -- our clients -- have
told us that SR&ED's rules, practices and policies, even its review process
are too complicated.
To make sure the rules of the
game are clear, several new communications packages are now with the Steering
Committee and the Advisory Committee for review.
These documents clarify
rights and obligations, explain policies and help our clients to understand the
SR&ED administrative process.
We're also developing joint
training programs for both industry and Revenue Canada representatives.
As you can see, we have been
listening to your concerns, and more importantly, we are quickly acting upon
them.
I believe we're making real
progress to ensure that the SR&ED program is customer-focused, consultative
and driven by clear communications and open dialogue.
Canada Customs and
Revenue Agency
Before I conclude my remarks
today, I'd also like to update you on another important Revenue Canada
development: the Canada Customs and Revenue Agency.
The Bill creating the Agency
received royal assent at the end of April and it will begin operations this
coming November 1.
As with the improvements to
the SR&ED program, the one thing that stands out in the events leading up to
this milestone is the value of consultation.
The Agency legislation
presents a framework for closer collaboration.
There is no obligation on the
part of Quebec, or any other province, to have the Agency administer more
programs on its behalf -- it is a matter completely for each to decide on its
own.
But even if Quebec chooses
not to participate, Canadian businesses would still benefit by saving between
$116 and $193 million annually in compliance costs.
If Quebec were to join in,
the savings to taxpayers would increase by $60 to $100 million a year.
Any new programs that the
Agency will administer will be based on a "business case" analysis.
This would apply to Quebec as
it does to the other provinces.
Even if Quebec chooses not to
have the Agency administer its programs, there is still a position on the Board
for a Quebec nominee.
This will ensure that Quebec
interests are taken into account by the Agency.
In our consultations, we
heard the same thing over and over: get rid of duplication.
I know many Quebecers want
only one income tax declaration.
In a poll recently published
in le journal les affaires, 73% of Quebecers stated that they were in favor of
the filing of a single federal provincial income tax declaration.
The same poll confirmed that
the majority want the federal government to take the lead.
The Agency will allow us to
do exactly that.
Reducing duplication is
important for everyone, but for business, I believe it is essential.
We have talked with the
provinces and the territories, and I can assure you that there is a strong
interest out there to work together to reduce the overlap of administration.
Revenue Quebec and Revenue
Canada already share some auditors who work on both MRQ and Revenue Canada
files.
And the SR&ED files are a
good example of this collaborative effort.
And, we are actively meeting
with Revenue Quebec to explore additional areas of collaboration.
The Agency provides a
framework that will further encourage these partnerships:
new partnerships that will
give Canadians better service; and
new partnerships that will
reduce costs and reduce paperwork for Canadian business.
Conclusion
The creation of the Canada
Customs and Revenue Agency and the improvements we have made to the Scientific
Research and Experimental Development Program are just two initiatives in a
government-wide plan to provide Canadians with better, more responsive and
cost-effective services.
I want you to know that this
is just the beginning.
I promise that we will
continue to work with you to ensure our programs address your needs.
I know, as a businessperson,
that with increasing globalization and rapid technological change, you face
tremendous challenges in this information age.
And my government recognises
that fostering innovation is critical to Canada's growth and prosperity.
That's why in the last
federal budget, we made the commitment to invest more than $1.8 billion over the
rest of this year and the next three years to build on the knowledge and
innovation initiatives introduced in previous budgets.
These investments will
strengthen federal programs that enable companies, like yours, to transform new
ideas into products and services.
I believe that Canada has
what it takes to succeed in the information age.
The OECD, for example, says
that Canada is first among the G-7 countries in terms of technology potential.
By continuing to focus on
your needs as customers, by building partnerships and by communicating and
consulting widely, government is doing all that it can to help Canada achieve
that potential.
But, to do our job properly,
we need your help.
Continue to talk to us.
Share your concerns with us.
Tell us about your issues and
ideas.
Stay involved.
Or, pour bien faire notre travail, nous avons besoin de votre aide.
Continuez de nous parler.
Partagez vos préoccupations avec nous.
Parlez-nous de vos problèmes et communiquez-nous vos idées.
Continuez de participer.
C'est la seule façon de garantir que l'industrie et les gouvernements
parlent la même langue.
C'est la seule façon d'atteindre le succès dont tous les Canadiens
tireront profit.
Je vous remercie.
