PRIME MRAINITE 11 May 1978
INDEPENDENT INQUIRY INTO CSIRO
Mr Speaker, I ask leave of the House to make a Statement
concerning the Government's decisions on the recommendations
of the Report of the Independent Inquiry into CSIRO.
In 1976 a comprehensive review was initiated to see whether
government programs for the development and coordination of
Australia's science and technology effort were as effective
as they might be. One inquiry established at that time
concel~ ned the role of a permanent Australian Science and
Technology Council, and as a result of that review, I
introduced a Bill last month to establish ASTEC as a permanent
and independent statutory authority.
Honourable Members will be aware that in 1976 an Independent
Committee of Inquiry was also established to review the objectives,
structure and programs of the Commonwealth Scientific and Industrial
Research Organisation. The members of the Inquiry were
Professor Arthur Birch, Professor of Organic
Chemistry at the Australian National University,
Sir Cecil Looker, Former President of the
Australian Associated Stock Exchanges, and
Mr Russell Madigan, Chairman of Haxnmersley
Holdings Limited.
The Inquiry's Report was presented on 25 August last year and
was tabled on 6 October 1977, ( Hansard, P. 1721).
The Inquiry's Report included 122 recommendations.
In considering these, the Government has been mindful of the
important contribution which CSIRO has made to science and
technology in Australia over the past fifty years.
The Committee of Inquiry observed that " the world reputation
of CSIRO is a source of pride and morale to its scientists,
and to Australia" ( Page XI). If any reminder were needed of
the great contribution which CSIRO has made, it is sufficient
to refer to the decision last month of the International Civil
Aviation Organisation All Weather Operations Division to adopt
internationally the INTERSCAN microwave aircraft landing system
developed by CSIRO in collaboration with the Department of
Transport. The structure of CSIRO was last reviewed and reorganised in
1949. At that time CSIRO was employing 2500 persons in
12 Divisions. It now employs 7,000 persons in 37 Divisions.
In the light of the findings of the Inquiry and other advice
available to the Government, it has been decided that CSIRO
should again be substantially reorganised.
CSIRO will remain a single multi-disciplinary research entity
responsible to the Minister for Science but much of the day.
to day management of CSIRO activities at present undertaken
by the Executive, will be devolved to Directors of new
functional groupings of Divisions to be called Institutes.
Under the new arrangements, the Executive will concentrate
on policy issues including the determination of research
strategy and priorities. The Executive will be assisted in
this task through revitalised advisory and consultative
arrangements which I will outline shortly.
The Executive of CSIRO will comprise a slightly smaller
governing body than at present. There will be a Chairman,
who will also be Chief Executive, and two other full-time.
members together with between three and five part-time members.
The full-time members may or may not be drawn from within CSIRO.
The part-time members will all be drawn from outside the
Organisation. The Government has agreed with the Committee of Inquiry that
there be up to six Institutes created from within CSIRO,
each headed by a very senior scientist as Director. Each
Director will be appointed by the Executive for terms of up
to five years, with provision for reappointment. Although
the main role of the Institute Directors will be managerial,
they will be actively consulted by the Executive in matters
of policy.
The Committee of Inquiry favoured Institute Directors being
appointed by the Executive and holding office on the Executive
in an ex-officio capacity, thereby providing a direct link
between the work points of the Organisation and the Executive.
The Government, however, after fully considering all aspects
of this matter including advice received from ASTEC on the
issue, has decided that Institute Directors should not be
members of the Executive but should only have an advisory
role. For the information of Honourable Members I table the
advice dated 28 September 1977 which I received from ASTEC.
The Committee of Inquiry recognised that much of the
success of CSIRO in the past can be attributed to a
policy of leaving scientific decisions in the hands of
scientists. The Government agrees with the Inquiry that
this policy should remain unchanged, and accordingly, the
basic research unit in CSIRO will continue to be the
Division headed by a Chief of Division.
The Inquiry drew attenthn in its Report to the importance
of consultative machinery which could help the Executive
to incorporate policy advice and the advice of users of
research results in its determination of strategy and
program priorities for CSIRO. Accordingly, the Advisory
Council will be strengthened to enable it to act effectively
as the major source of advice to the Executive. Its membership
will be reorganised along the lines proposed by the Inquiry
and will include representatives from a wide range of interests.
It will be completely independent of the Executive of CSIRO,
have its own Secretariat and members of the CSIRO Executive
will not be members of the Council. It ; is envisaged that the
Advisory Council will set up ad hoc work groups to investigate
particular areas related to CSIRO activities. Advisory Council
advice and initiatives will be incorporated in the CSIRO
Annual Report.
The Advisory Council will be linked with reconstituted State
Committees, which will be the main source of advice to the
Advisory Council. The State Committees will provide grass
roots contact with industry, centres of education, and the
community generally. Each of them will maintain close contacts
with CSIRO Divisions in its own State. The Chairmen of the
State Committees will be members of the Advisory Council. The
Government will also be looking to CSIRO to encourage its
scientists to take initiatives in broadening their own contacts
both within the outside CSIRO, so that their contribution in the
formulation of policies at the Institute level can be strengthened.
I now turn to the research activities of CSIRO and its future
role. The Government agrees with the Inquiry that the main
role-of CSIRO should be defined more clearly in CSIRO'S
constituting legislation, The Science and Industry Research
Act 1949. Amending legislation which will be introduced in the
Budget Sittings will make it clear that the main role for
CSIRO will be scientific and technological research in support
of Australian industry, community interests, and other
perceived national objectives and obligations.
CSIRO research for Australian industry will continue to incl. ude
work in support of the rural and mining sectors, the manufacuring
sector, the construction sector and the services sector, such as
transport. CSIRO research will support such community interests
as the better protection of our environment, flora and fauna,
and consumer interests.
The Report of the Inquiry made a number of other
recommendations on the scope and emphasis of CSIRO's
research effort which the Government has accepted. The
main concern of OSIRO research will continue to be the
physical and biological sciences. The types of research
to be undertaken will be longer term research for the
community's benefit which industry and other research
organisations are unable to carry out, and fundamental and
short-term problem oriented research if it is related to
the role of the Organisation.
Research into economics and the other social sciences will
not be undertaken, but steps are to be taken to utilise the
requisite expertise from these fields in program conduct,
evaluation and planning. Research in human medicine will not
be a direct objective of CSIRO but research results in
biological and physical sciences will be asseEsed for their
possible significance and application in human medicine.
Individual scientists will be encouraged to follow up their
research as far as practical into the developmental stage.
CSIRQ will have a major role in helping Australia meet its
international obligations. For example, CSIRO will continue
to undertake basic research, such as in astronomy,
atmospheric physics and oceanography, to increase man's
knowledge of the region in which we live.
CSIRO will also assist the Government in meeting Australia's
international obligations to developing countries. The Government
is most conscious of the vital role that developing countries
will increasingly play in world affairs and of our need
constantly to review government policies to take this factor
fully into account. To this end, the Government recently
established a Committee to review Australia's relations with
the Third World. Consistent with this policy approach, CSIRO
will contribute to the scientific and technical needs of these
countries as part of Australia's foreign aid program through
work carried out both in Australia and abroad. CSIRO will also
have the opportunity to contribute through other arrangements
such as the Consultative Group on Energy established at the
recent Commonwealth Heads of Government Regional Meeting in
Sydney. In all its areas of research, CSIRO will have to ensure that
it does not duplicate the research activities of other research
institutions, undertaken or otherwise supported by the
Commonwealth or State Governxoients.
CSIRO's autonomy in the setting of research project objectives
will be maintained. Recognizing that CSIRO's activities must
accord with the policies of the Government, the Birch Report
has recommended ministerial discretion should also be maintained
to be used as a last resort. The Government has accepted this
recommendation and should ministerial discretion be employed it
will be reported in CSIRO's Annual Report.
The Government has accepted the Inquiry's recommendation that,
through the application of the revised advisory and consultative
machinery, current programs should be terminated where they are
judged to be inappropriate. It has also been agreed that
CSIRO should present, at appropriate intervals, the main
thrusts of its broad policies and more detailed objectives
for Government, Parliamentary and Community scrutiny.
The Inquiry recommended that specific approval of the Minister
should not be-required for CSIRO to enter into arrangements
for the implementation of research results. The Government
has decided that the implementation of research results should
continue to be a function of CSIRO subject to a general power
of the Minister to provide the Executive with guidelines.
There are numerous further matters dealt with in the Report of
the Committee of Inquiry. On many of these, the Government has
reached a decision. On others, further examination is required
and is currently being undertaken expeditiously. The Minister
representing the Minister for Science will outline these
matters in a separate Statement shortly.
It is the Government's intention to implement as soon as
possible the new organisation and Executive structure of
CSIRO to facilitate the detailed implementation of the
Government's decisions on the Inquiry's Report.
I conclude by placing on record the Government's appreciation
of the work done by the Members of the Inquiry, Professor
Birch, Sir Cecil Looker and Mr Russell Madigan. Their
contribution to the development of Australian science and
technology policy in this Inquiry has been an outstanding one,
made possible by their wide experience foresight and
judgement.
The Committee of Inqiury could not of course have carried
out its work without advice from Commonwealth and State
Government Departments, the many private companies and
individuals who made submissions to the Inquiry, and of course
members of CSIRO at all levels, who, the Committee noted in its
Report, assisted the Inquiry with " courtesy, patience and
frankness".
AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL ( ASTEC)
Tel ephone: 72 5746 Post Office Box 52
Canberra, A. C. T. 2600
28 September, 1977.
My dear Prime Minister,
On 8 September 1977 you wrote to me requesting that
the Australian Science and Technology Council comment to you
by the end of September on the Report of the Independent Inquiry
into the CSIRO. The Council' s Report is attached.
ASTEC is in general agreement with the recommiendations
of the Independent Inquiry. We believe that implementation of
the recomendations requires only minim~ al amendme~ nts to the
CSIRO Act, and that the majority of the reconmendations can be
implemented by the CSIRO Executive. In this regard ASTEC
considers that the legislation should provide substantial
flexibility; in particular the composition of the Executive,
and the duties of its members, should not be specified in
detail in any new OSIRO legislation. In part, this is because
ASTEC can see difficulties with the Executive structure proposed
in the Independent Inquiry Report. AS TEC' s recommendations on
this anid other mratters are presented in the attached Report.
Yours sincerely,
G. M. Badger
Chairman
The Right Honourable Malcolm Fraser, CH, MP,
Prime Minister,
Parliament House,
CANBERRA, A. C. T. 2600.
Composition of the Executive ( Inquiry Report, Reccommendation 29)
1. ASTEC believes that the CSIRO should be allowed to make its own arrangemz-nts
for its new executive structure, and not have detailed definition of the
executive' s structure and functions in the legislation. ASTEC therefore
reccommends that only the following should be specified in the legislation:-
* There shall be six statutory members of the CSIRO executive, three
full-tine and three part-time.
* The six statutory members will be appointed by the Minister.
* The three full-time members will be a Chairman, who is also Chief
Executive of CSIRO, a Deputy Chairman, and one other member.
* Full-time members will serve up to a seven-year term, with eligibility
for re-appointment. Part-time menabers will serve a three-year term,
with eligibility for re-appointment.
* The Chairman shall have a deliberative vote at meetings and, in the
event of equality of votes, a casting vote.
* The Executive may appoint up to six associate ( non-voting) members of
the Executive, from among the staff of CSIRIJ.
2. ASTEC believes that the duties of the full-time members of the Executive
should not be defined in legislation, as such duties may not suit the most
able people available for appointment. ASTEC ' would expect that Directors
of Institutes w~ ould normally be associate members of the Executive, but
believes that this should not be a requiremlent of the legislation. ASIFC
believes that it is inappropriate for Directors to be voting members of the
Executive because of possible conflict of loyalties, but that they should
take part in all discussions.
Ministerial Responsibility for CSIRO ( Inquiry Report, R. 26)
3. ASTEC reco2 nends that CSILK) report to the Minister for Science, not the
Minister.
CSIRO Advisory Council ( Inquiry Report,
4. ASTEC reccommends that the CSIRO Advisory Council be set up in such a way as
to provide the fullest possible advice to the Executive. This co-operative
approach can be promoted in two ways:-
The Executive should be obliged to seek the advice of the Advisory
Council. Two full-time members of the Executive should attend Advisory Council
meetings on a regular basis, as non-voting members.
ASTEC believes that the composition of the Advisory Council should not be
too closely defined in legislation. In particular, the Advisory Council
structure suggested on page 69 of the Independent Inquiry' s Report should
not be specified. The Chairman of the Advisory Council should be appointed
by the Minister ( not elected by the members of the Advisory Council) and
should not be a. member of the CSIRO Executive. Other manbers of the
Advisory Council should also be appointed by the Minister.
6. ASTEC recommends against an ASTEC member being an ex officio member
of the Advisory Council, but believes that attendance of an A= TE
member from time to time at Advisory Council meetings is sufficient
to maintain communication between the two bodies. The Chairman of
the Advisory Council could also attend ASTEC meetings from time to time.
CSIRO and Industry
7. The role of CSIRO. ( Inquiry Report, R. 3) ASTEC believes that mo~ re
Emphasis on the application of research results, and of existing
knowledge, especially to the problems of industry, would be desirable.
AST= recommnends that, in reshaping the powers and functions of the
CSIRO, Section of the current Act should be amended to read:
* The initiation and carrying out of scientific
researches and investigations
and
* the development and application of science and
technology in connexion with, or for the promotion of Australian
industry, community interests and other perceived
national objectives and obligations, or in connexion
with any other matter referred to the Organization by
the Minister"
8. As a corollary, the title of the Act should be amended to reflect this.
9. Research Associations. ( Inquiry Report R. 14,67) AS IEC agrees that the
legislation should be amended to restrict CSIRO funding of research
associations to specific contracts. ASTEC does not necessarily concur
with Recotmmendat ion 67 that the Department of Productivity may be the
mo~ st appropriate agency for promnotion of all research associations.
The question of research associations needs further investigation,
especially in the light of current inquiries into Industrial research
and development by ASTE and the Senate Standing C~ mittee on Science
and the Environment. ASTEC will report in more detail in the near
future, and for the time being recoirmends that Departmental responsibility
for research associations should not be assigned.
Selection of Industrial Partners for Developmnent. ( Inquiry Report R. 109)
ASTEC agrees that CSIRO should have power to select private firms for
developmnent of research results, and reconnmnds; that CSIRO should be
able to enter into arrangements with a private firm for joint developmnent
of CSIRO' s research results. If this reccommendation is to be
effective in practice, CSIRO must have power to enter into confidential
contracts and this power should be provided by amendments to the
Act.
CSIRO's Financial and Manpower Budgets
11. GSIRO's activities already represent a large proportion of Australian
scientific activity. As any major growth in CSIRO's total manpower or
expenditure could lead to distortion in Australia's research effort,
CSIROI's total budget and manpower ceiling should be strictly controlled.
The period of implementat ion of the Independent Inquiry' s Report should
be one of re-assessment of programs, and of the termination of
inappropriate programs to make way for new initiatives ( Inquiry Report
R. 23).