ADDITIONAL KNOWLEDGE INFRASTRUCTURE INVESTMENT WILL PAY DIVIDENDS

No. 02-03

The Association of Atlantic Universities (AAU) applauds the Harper Government’s decision to direct significant spending to universities under the Knowledge Infrastructure Program (KIP), a vital part of Canada’s 2009-2011 Economic Action Plan.  With the help of a federal KIP contribution of $82 million, and additional support  from Provincial Governments and other sources, Canada’s East Coast universities spent $177 million which upgraded, expanded, and created new state-of-the art campuses. 

In this policy paper, the AAU argues that KIP will enable the universities to build on their record of success as engines of economic growth in Atlantic Canada. In addition, this paper recommends that the Federal Government seriously consider introducing another phase of KIP: a second investment in university infrastructure that would solidify the competitive position of Canada’s East Coast universities, and enhance their capacity to deliver economic benefits to the region and the nation. 
 
The direct local and regional economic stimulus created by KIP has been profound. Project spending has generated:
  • 1,880 person years of employment
  • Wages and salaries of $85,400,000
  • Federal tax revenue of $23,230,000
  • Provincial tax revenues of $13,400,000
KIP represents, then, an impressive success. It reinforced the foundations for education, research, student attraction and retention, and future economic growth. Today, however, Canada’s East Coast universities still face an extraordinary fiscal challenge - $700-million in deferred maintenance costs across the region. 
 
An additional investment in KIP would align with the Federal Government’s stated commitments to technology, innovation and productivity improvements, including the cleaner energy economy and reduction of greenhouse gas emissions. It would also help the government meet its 2011 Budget commitments to excellence in climate and atmospheric research at Canadian post-secondary institutions. 
 
AT THE AAU, WE ARE READY TO PARTNER with Federal, Provincial Governments and other partners in moving this initiative forward. All member universities will update a 2008 audit of deferred maintenance projects undertaken by the Council of Atlantic Deputy Ministers of Education (CADMET). The goal of this audit, to identify opportunities to improve energy conservation and efficiency, is wholly consistent with Federal Government environmental policies. In addition, the universities are determining how new ‘green technologies’ – including renewable energy sources and modernized heating systems – can be successfully deployed on campuses. 
 
Indeed, universities across the region are showcasing the positive outcomes of the KIP program with 'Open Doors, Open Knowledge' events: 
September 4 -  University of New Brunswick, Hans W Klohn Commons
September 12 - NSCAD University, Academy Open House
October 7 - University of New Brunswick, Richard J Currie Centre
October 28 - St. Francis Xavier University, Schwartz School of Business
November 4 - Cape Breton University, Centre for Sustainability in Energy & the Environment
November 5 - Acadia University, Patterson Hall
November 7 - Université de Moncton, Journée portes ouverts
Novemver 7 - Saint Mary’s University, McNally Building and the Atrium
November 7 - Mount Saint Vincent University, Evaristus Building
November 7 - Dalhousie University, Life Sciences Building
November 8 - Mount Allison University, Barclay Biochemistry and Chemistry Building
November 9 - St. Thomas University, Edmund Casey Hall
A Federal Government Investment in these technologies – an investment that will pay itself back over time – is an example of the kind of disciplined spending that is essential in a time of fiscal restraint. As Kevin Lynch, the Vice-Chair of BMO Financial Bank said in a recent article in The Globe and Mail, stimulus and restraint are mutually compatible. "The federal government is right to look for savings in its program spending, and to do so in targeted ways.  It is also right to avoid the false debate between stimulus on the one hand and austerity on the other - in a sound fiscal framework, you can and should have both.  This requires innovation in policy making that is responsive and responsible." 
 
We firmly believe that an additional Federal Government investment in KIP represents the kind of targeted spending that Mr. Lynch champions. It will pay great dividends to the Atlantic region and to Canada. It would also come at a time when the contribution of the region’s universities is well understood among policy makers and opinion leaders. Today, Canada’s East Coast universities generate $615-million per year in Research and Development activity in Atlantic Canada – or 57 per cent of the regional total. International students, who continue to attend our institutions in increasing number despite growing global competition, contribute $565 million annually to the economy of the region. Our campuses are also a magnet for young, talented migrants from outside the region– many of whom stay in the region after graduation. 
 
Today, we are asking the Federal Government to build on the success of the Knowledge Infrastructure Program (KIP), through a second round of investment that will prove good for the region and good for Canada. Our universities serve as the recognized engine of the knowledge economy in Atlantic Canada. The Federal Government now has an opportunity to help the universities achieve a higher standard of excellence in their role as incubators of progress.  It should seize the moment. As noted by Kevin Lynch, "Ultimately, fiscal balance and growth must go hand in hand." 
 

Key Questions for Consideration

  • What role should provincial governments play in a second round of investment under the Knowledge Infrastructure Program?
  • What should the investment priorities be under Phase II of KIP? 
  • What additional steps should universities take to further enhance their contribution to the region’s economic well-being?
 
Have an opinion or question about this issue?
 
 
Bibliography
  1. Business Case for Infrastructure Investment in Colleges and Universities in Atlantic Canada, Prepared for Council of Atlantic Ministers of Education & Training, January 2008  – Costello Fitt Limited in association with T.M. McGuire Ltd.
  2. Building the Knowledge Economy – Impact of the Knowledge Infrastructure Program on Atlantic Canada’s Universities, Association of Atlantic Universities, January 2011
  3. Stimulus. Austerity. We Can Have Both, The Globe and Mail, Nov. 1, 2011 – Kevin Lynch, Vice-Chair of BMO Financial Group