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Montréal, May 3, 2006 - The first budget by federal Finance Minister Jim Flaherty contains provisions for universities that, overall, are in line with the commitments made by the Conservative Party in its electoral platform.

Among them are provisions for research totalling $100 million. The Conservatives had promised to earmark an additional $500 million to university research over a potential five year term in office. This $100 million is to be allocated as follows: $40 million for indirect costs of research, $17 million each for the Canadian Institutes of Health Research and the Natural Sciences and Engineering Research Council of Canada, $6 million for the Social Sciences and Humanities Research Council of Canada and $20 million for the Leaders Opportunity Fund of the Canada Foundation for Innovation.

According to Roch Denis, CREPUQ President and Rector of UQAM, these measures are a step in the right direction. The budget increases for indirect costs of research should boost their average funding rate to about 27% of direct costs, which is slightly more than the current level of 25% but still substantially less than the actual costs. Similarly, the budget increases for the granting councils are by no means insignificant. However, it is important to realize that more needs to be done if we are to offer the many young professors and researchers who are entering our universities the best chances of obtaining funding and improving Canada’s research status.

The allocation of $1 billion to improve infrastructure and equipment at postsecondary institutions, based on what appears to be a fairly broad definition, is cause for rejoicing. Nevertheless, provincial jurisdictions need to have free reign as to what institutional expenses are funded with this money. Note also that Québec will receive an additional amount of about $185 million under the equalization program.

The decision to eliminate the federal tax on all scholarship and bursary income is certainly welcome. CREPUQ had asked for this last October.

“We must also note the federal government’s intention to begin talks with the provinces immediately regarding resolution of the fiscal imbalance. For Québec universities, this is a most important issue and a solution is needed in the very short term because the financial situation of our universities has, quite frankly, become intolerable, to the point of seriously compromising the quality of the education dispensed to our students,” Mr. Denis pointed out. The university heads will continue their firm support for Minister Jean-Marc Fournier and Premier Jean Charest in this process. “This is still something to keep an eye on, but we believe there is some light at the end of the tunnel. Given the universities’ extremely precarious financial situation, however, the government should immediately allocate to the universities the funds that this first budget will make available to Québec,” concluded Mr. Denis.

For information:

Jacques Bordeleau

Director General

514 288-8524, ext. 201