Vanguard Magazine

I IRBs A STRATEGIC APPROACH TO INDUSTRIAL AND REGIONAL BENEFITS In July, the Canadian Association of Defence and Security Industries (CADSI) delivered a report at the request of Industry Minister Christian Paradis on the government's industrial and regional benefi ts (IRB) program. Though Canada was among the fi rst countries to adopt an off sets program, many in the defence industry believe that, despite changes made in 2009, the policy is no longer competitive with other nations. The report contains 17 recommendations, divided into three broad sections. First, it renews CADSI's call for an industrial strategy that not only serves the government's primary purpose of equipping the Canadian Forces but also maximizes jobs, innovation and economic activity for Canada through defence spending. It then off ers suggestions to improve measures introduced to the program in 2009. Finally, it invites the government to consider administrative changes that would result in a more fl exible, less process driven approach to program management. CADSI president, Tim Page, and vice-president of government relations, Janet Thorsteinson, spoke recently with Vanguard about the reasoning behind some of their recommendations. QCADSI represents a wide range of companies with diff erent needs and interests. Was there relative consensus on most of the issues raised in this report? Page: There was remarkable consensus. We canvassed input from all of the principal industrial stakeholders, including: foreign OEMs (original equipment manufacturer), domestic OEMs, the domestic company recipient community, transactional agents – the brokers that help bring marriages together between those with obligations and recipients who help to satisfy those obligations. We created a working group, surveyed members and conducted a series of one-on-one interviews with our target population. Our report refl ects input from that broad constituency. They are all seeing the same things. The program could be run more effec- tively for Canada with improvements to the IRB tools and more effi ciently through administrative simplifi cation and fl exibility. 34 OCTOBER/NOVEMBER 2012 www.vanguardcanada.com Thorsteinson: CADSI members expressed concern that the IRB changes announced in 2009 are not being implemented in a way that is attractive to companies with obligations. Since many other countries have offset programs, the best industrial outcomes will go to those with defi ned industrial policy objectives, appropriate incentives and relatively straight-forward administrative require- ments. Canada can do better and if it does it will better leverage defence spending in Canada to our industrial advantage. Q You are essentially calling for the IRB program to be used more strategically by the government. What's been missing? Page: Our view is that the IRB program is an important tool in the government's ability to leverage defence spending to stimu- late domestic jobs, innovation and economic activity in key in- dustrial capabilities that hold national security and economic in-

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