PRIME MINISTER
FOR MEDIA 8 MAY 1989
JOINT STATEMENT WITH THE MINISTER FOR SCIENCE, CUSTOMS AND
SMALL BUSINESS, THE HON. BARRY JONES
Since first coming to office the Government has recognised
that realisation of our vision of Australia's future
requires many fundamental changes to Australian attitudes
and institutions. This need for change is no less evident
in science and technology. The Government has pursued a
consistent science and technology strategy aimed at
achieving this change.
This strategy recognises that crucial elements of research
must be supported by public funds. It adopts as two
important objectives the pursuit of excellence and the
closer cooperation between researchers and users of that
research. It recognises that science and technology depend
on the creativity of individuals. And finally, it seeks to
integrate science and technology into the broader community.
In pursuit of that strategy, research into science and
technology in Australia is supported by public funds
totalling about $ 1.9 billion annually, through direct
funding, through institutions of higher education and
through tax concessions.
Public funding of research and development in Australia is
about the middle order of OECD nations. Private sector
support has been near the bottom of the ladder. When this
Government came to office, 80 per cent of the nation's
research activities were publicly funded, with private
industry providing the remaining 20 per cent.
We have increased funding for research and development
promotion and incentive schemes such as the 150 per cent tax
concession for industry R& D, the Grants for Industry
Research and Development ( GIRD) scheme, medical research
( NHMRC) and the Rural Industry Research Funds. We have also
encouraged our research organisations to seek greater
outside funding.
Since 1982-83, Government support for research through
grants, higher education and Government agencies has risen
by 12 per cent in real terms, although the composition of
this support has altered. Support for industry research and
development has trebled.
By 1986-87, within a substantial increase in total R& D
expenditure, industry had increased its share in the
nation's research effort to 35 per cent. This is a welcome
trend. The best Australian research can now receive increased
support, as researchers must now win a proportion of their
funding by competing with others against a variety of
standards, some involving peer review ( through the
Australian Research Council) and others commercial criteria.
There has already been a massive expansion of higher
education places and there will be a further 49,000 places
created during the 1989-91 triennium. We have also
dramatically lifted school retention rates from 38 per cent
in 1982 to 58 per cent last year.
A number of reviews of science and technology policy is now
complete: the Smith and Wilson Committees on higher
education, the McKinnon Committee on marine science, the
Primary Industries and Energy review of research and
development in the portfolio, the Group of Officials on
science and technology, and ASTEC's review of the core
capacity of Australian science and technology.
While these reviews demonstrate that the Government's basic
approach remains valid, some opportunities for improvement
have been identified.
In responding, the Government will increase expenditure
substantially on science and technology by $ 390 million over
five years and also forgo significant revenue, as summarised
in the following table ( See Table 1 and the Attachment for
further details).
Additional Support for Science and Technology Five year total
Career Development 51.00
Re-equipment and other Priority Projects 317.20
Public Awareness 5.00
International Co-operation 17.50
390., 70
Continuting the R& D tax incentive is anticipated to cost
approximately $ 600 million if the expected 1988-89
experience with this incentive is repeated.
In recognition of the importance of having these issues
brought regularly before Government, we are today announcing
the formation of the Prime Minister's Science Council. The
Prime Minister will chair the Council with the Minister for
Science, Customs and Small Business, who now also becomes
Minister Assisting the Prime Minister for Science and
Technology, as deputy chair. A new position of Chief
Scientist to advise the Prime Minister and Minister
Assisting and act as Executive Officer of the Council will
be created. The Chief Scientist will chair the officials
level Co-ordination Committee on Science and Technology with
the Chief Science Adviser in the Industry, Technology and
Commerce portfolio as deputy chair.
Science and technology will have a central role to play in
the nation's future, as it has in its past. It will
continue to influence crucially our economic performance,
health, environment, defence, human values and culture. In
this statement, the Government has made a commitment to
improving Australia's scientific and technological base.
Successful implementation of these strategies will need an
equally vigorous commitment by researchers, research
institutions, higher education and industry.
ATTACHMENT
SUMMARY OF MEASURES
CO-ORDINATION
A major new national forum for consideration of science and
technology issues will be created through the formation of
the Prime Minister's Science Council. The Council will be
chaired by the Prime Minister, will include other senior
Ministers with strong portfolio interests in science and
technology, representatives from the scientific community
and leading executives from industry.
Others with a particular interest in or ability to
contribute to issues before the Council will be co-opted for
those items. The Council will meet at least twice a year to
consider issues of national significance in science and
technology.
SIn science and technology matters in general and in the
business of the Council in particular, the Prime Minister
will in future be assisted by the Minister for Science,
Customs and Small Business who also becomes the Minister
Assisting the Prime Minister for Science and Technology.
The Minister Assisting will be deputy chair of the Council.
A new position of Chief Scientist will be created within the
Prime Minister's portfolio to provide advice to the Prime
Minister and the Minister Assisting on Science and
Technology. The Chief Scientist will serve on the Prime
Minister's Council and act as its Executive Officer,
responsible for co-ordinating the business of the Council.
At the officials level and complementing the work of the
Prime Minister's Council, the Co-ordination Committee on
Science and Technology will be chaired by the Chief
Scientist with the Chief Science Adviser in the Industry,
Technology and Commerce portfolio as deputy chair. This
Committee will bring together senior officers from all
departments with an interest in science and technology to
share information about their programs and policies,
problems and opportunities.
THE 150 PER CENT TAX INCENTIVE FOR R& D
This will be extended for a further two years, to 30 June
1993. Recognising the long term planning necessary in R& D,
the incentive will be phased out, operating at 125 per cent
for a further two years. To give an indication of the gross
-cost to company tax rquenue, this incentive is expected to
cost about $ 200 million in 1988-89.
CSIRO, ANSTO, AIMS
In March 1989, the Government boosted CSIRO's base funding
by $ 2.1 million, $ 6.6 million and $ 11.6 million in 1988-89,
1989-90 and 1990-91 respectively. As a further commitment
to enhancing the strength of the public research sector, the
Government began a program in March 1989 to update obsolete
equipment in Government research organisations, with
million for CSIRQ in 1988-89. The Government has now
decided to allocate further funds for equipment and priority
projects, amounting to $ 90 million over the next five years.
The Australian Nuclear Science and Technology Organisation
( ANSTO) is Australia's major centre of expertise in nuclear
science and associated technologies. As part of the March
1989 decision to allocate additional funds for equipment in
Government laboratories, ANSTO received $ 0.5 million towards
the cost of a tandem accelerator. The Government has now
decided to allocate a further $ 2.5 million over the next
five years for new equipment.
The Australian Institute of Marine Science ( AIMS) conducts
research in Australia's tropical coastal and continental
shelf regions. In March of this year, the Government
allocated an additional $ 1.1 million to AIMS for equipment
purchased in 1988-89. The Government will now provide a
further $ 2.5 million for equipment and new research over the
next five years.
A recent review of Australia's marine industries and marine
science and technology capabilities has identified
Australia's achievements, strengths and commercial
advantages. The Government accepts the Report's principal
recommendation that policies should be prepared and
implemented to develop further our marine resources and
associated industries. It also believes that industry
development should be targeted to areas in which Australia
has particular opportunity and where industry is a willing
partner. The heads of the Government's marine science and technology
agencies will be asked to work with the Department of
Industry, Technology and Commerce to examine areas of
potential industry development, to bring marine R& D more
closely into line with industry requirements and to play a
key role in international co-operation in marine science and
technology. The Government has decided to provide an extra
$ 3.9 million for these activities over the next five years.
PUBLIC AWARENESS
The Government has decided to support initiatives which
enhance awareness of science and technology. It will create
the Australia Prize, worth $ 250,000 tax-free annually. This
prize will be an award for scientific excellence in
promoting the welfare of the peoples of the world. The
Government will also establish an Industry-Science
Foundation to create a mechanism which will alert business
leaders to opportunities for long term patient capital
investments in research-based products-and services.
RESEARCH IN HIGHER EDUCATION
A total of $ 977.9 million will be allocated through the ARC
over the next five years from and including 1990, an
increase of $ 466.4 million over 1989 funding levels. This
will be achieved by a major injection of new funds and by
continuing the transfer of funds from institutional
operating grants to the ARC. New funds will total $ 254.4
0 million over the next five calendar years with $ 56.9 million
going to increase support for postgraduate research students
and the remaining $ 197.5 million to develop the capacity of
higher education institutions to support high quality
research.
The funds will be allocated on advice from the ARC, in
consultation with the Higher Education Council ( HEC).
To allow better forward planning the Government will
introduce full triennial funding for the ARC in line with
funding arrangements for higher education institutions.
RESEARCH TRAINING
The Government will provide additional funds of
$ 56.9 million over the next five calendar years to upgrade
dramatically the Commonwealth Postgraduate Awards Scheme.
In 1990 the Government will make available $ 31.8 million
sufficient to provide for 1450 continuing research
0 scholarships and 900 new research scholarships. From 1990
all Commonwealth Postgraduate Research Awards will be
provided tax-free at a minimum of $ 12,734, equivalent to a
taxable level of $ 15., 000, compared to the current level of
$ 10,415. Institutions will have the flexibility to set
stipends above this level up to $ 16,433 ( equal to $ 20,000
taxed) according to their own research priorities and local
needs. In addition, 30 new industry research scholarships will be
available each year t--i.-ink -directly with industry. They
will assist in opening up joint industry higher education
research training opportunities, and so lead to closer
interaction between the two sectors. It is intended that by
1992 there will be a pool of about 80 or 90 of these awards.
HEALTH AND MEDICAL RESEARCH
The Government will further strengthen Australia's health
and medical research workforce by attracting and retaining
bright young researchers through a program of priming grants
to assist the transition from understudy to fully-fledged
independent scientist. A senior medical research
fellowships and awards program will help attract to
Australia eminent medical researchers in high priority
areas. In addition, the postgraduate research awards
granted by the NHMRC will be increased-in number and value
at a cost of $ 5.7 million over five years.
In seeking to maintain Australia's strong international
record in medical research, the Government will also provide
the NHMRC with an additional $ 39.8 million to upgrade and
replace obsolete biomedical equipment. The NHMRC will now
also allocate a proportion of the funds which have been
transferred from higher education operating grants to the
ARC. The total increase in funding for medical research through
the NHMRC over the five year period to 1993-94 is
$ 45.5 million. This represents a real increase of 18.7 per
cent over the period.
PRIMARY INDUSTRIES AND ENERGY
The Government has recognised the need for a more integrated
approach to research policy across primary and energy
industries. Today, the minister for Primary Industries and
Energy, Mr John Kerin, and the Minister for Resources,
Senator Peter Cook are releasing a statement, Research,
Innovation and Competitiveness, which deals with primary
industries and energy research and development arrangements,
and how they can be made more efficient and effective and
continue to produce results that are relevant to industry
needs. The changes fall into several areas: funding,
co-ordination and evaluation of research efforts.
Initiatives will cost*$ 3.5 million over five years.
ENVIRONMENT The Government has already announced support for a national
Greenhouse research program so we can better understand and
respond to climate change. It will provide $ 7.8 million
during 1988-89 and 1989-90 for research and policy support
including: research by CSIR@ sand-the -Bureau of Meteorology on
climatic modelling;
support for the World Climate Impact Studies Program of
the United Nations Environment Program; and
funds for the Academy of Science to participate in the
international Geosphere Biosphere Program.
8.
A National Greenhouse Advisory Committee, comprising eminent
Australian scientists, will be established to advise the
Government on Greenhouse research issues, including details
of a Greenhouse research grant scheme to begin in 1990-91.
INTERNATIONAL COLLABORATION
The Government believes that Australian researchers should
be able to participate as a full partner in international
precompetitive R& D programs where the collaboration can help
Australian technology enter world markets. The Government
has therefore decided to increase funding for international
science and technology by $ 17.5 million over the next five
years, including additional support for Bilateral Science
and Technology Co-operation programs.
TABLE 1
ADDITIONAL SUPPORT FOR SCIENCE AND
TECHNOLOGY' 1
1989-901990-91
CAREER ISSUES
Connmmonwealth postgraduate
awards
NHMRC postgraduate awards
INFRASTRUCTURE/ PRIORITY PROJECTS
Higher education
DPIE review of R& D effectiveness;
equipment ( BMR)
DCSH training; equipment:
new research
CSIRO equipment: new research
ANSTO equipment
AIMS equipment
Marine science and technology
PUBLIC AWARENESS
Prime Minister's Science Council
Australia Prize
Special projects 1991-92 Five
to Year
1993-942 Total
$ m $ m $ m
2.70 8.40 11.40
0.80 1.00 1.30
10.00 30.00 45.00
1.30 1.30 0.30
4.40 8.10 9.10
14.00 0.50 0.50 0.70 0.20 0.25 0.55 19.00 0.50 0.50 0.80 0.20 0.25 0.55 19.00 0.50 0.50 0.80 0.20 0.25 0.55
INTERNATIONAL SCIENCE AND TECHNOLOGY
Bilateral S& r agreements:
precompetltlve R& D; Human
Frontiers Science Program 3.10 3.60 3.60
R& D FUNDING
Continuation of J& D tax
incentive"
TOTAL39.00 74.2092.50390.70
All amounts are in 1989-90 dollars. The figures in this column
apply in each of the years 1991-92, 1992-93 and 1993-94. To give
an Indication of the gross cost to company tax revenue of this decision.
the amount foregone in 1988-89 Is expected to be about $ 200 million. $ m
45.30 5.70
175.00 3.50
39.80 90.00 2.50 2.50 3.90 1.00 1.25
2.75
17.50