Your criticism of the governments suppression of any type of scientific inquiry is perfectly warranted, and I agree Gary Goodyear is incompetent for his role, however, the ruling party has helped fund major advances in the Sciences that were NOT directed to business only. in 2011, Canadian research in higher education (per capita) was higher than any other G7 nation (although for the US data was for 2004, I think). Like I mentioned before, they committed and are still committing millions to Genome Canada, (a non-profit organization) the Perimeter Institute for Theoretical Physics, "35 million over five years, to the Natural Sciences and Engineering Research Council of Canada to support excellence in climate and atmospheric research," and 100 million for neuroscience. I think the reason for this years budget being less is due to the economy.
The government is under pressure to get people working. Which is why they are (for this year) mainly interested in research directly affecting business. It's hard to sell basic research to voters if they don't see a direct effect. Not all Canadians are scientifically literate and don't understand research should be funded to all areas of science, so the government is being very picky on who gets the funding.