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ArcelorMittal Dofasco

Submission — ArcelorMittal Dofasco

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Submitter(s): Wegiel, Henry

Summary: ArcelorMIttal Dofasco believes that it is important to increase R&D activity in Canada and grow advanced manufacturing/innovation regional clusters. This is particularly true for steel, given it is the "hub" of such regional clusters. Our global company, ArcelorMIttal, operates in over 60 countries, and is a leader in R&D, with over 1500 full-time researchers in 15 R&D labs throughout the EU, North America and South America. The Canadian lab in Hamilton employs 53 engineers and technicians. The challenge is that the Canadian government R&D Support Programs, and in particular the current construct of the SR&ED Tax Incentive Program, does not provide effective business incentives for the ArcelorMittal group to fund incremental R&D investment in Canada. This is primarily a result of government R&D incentives being greater in other parts of the world. For Canada to seize the opportunity to increase the R&D activity, the Government requires to consider rebalancing and transitioning its programs from predominantly being driven by tax deductions, to one where large-industrial multi-national companies can participate in fully refundable tax credit programs and meaningful direct government funding programs. In this context, governments require to consider not only increasing the overall level of direct government R&D funding, but also increasing the allocation for industry. Increasing Canada's talent pool of qualified graduates, strengthening business and academic links and coordination/harmonization of federal/provincial programs is also important. A global benchmarking study is a key first step for Canada to establish a policy framework second to none in order to capture R&D opportunities for Canadian industry and the economy in general. We look forward to working with the Government in this important endeavour.

Full submission: PDF Version