NATIONAL SCIENCE AND INDUSTRY FORUM – 57TH MEETING

Enhancing Australian chemical manufacture: Reversing the chemical deficit

National Measurement Laboratory, Sydney, 7 November 1996

The National Science and Industry Forum of the Australian Academy of Science held its 57th meeting at the National Measurement Laboratory at Lindfield in Sydney on 7 November 1996. This report summarises the papers delivered.

The Australian chemical industry plays a critical role in the Australian economy through direct sales of chemicals and by supply of chemicals to many other sectors of the economy. The industry has recently undergone extensive restructuring which has positioned Australia to compete in global markets through efficient use of our intellectual capability and our resource base. Australia is faced now however with a substantial deficit in its trade in chemicals.

For more information about the Forum, email eb@science.org.au.

Contents

The Forum

Australia's balance-of-payments problem
The Secretary (Science Policy) of the Australian Academy of Science, Dr Keith Boardman, welcomed participants to the 57th National Science and Industry Forum and laid out the challenges that confronted the participants.

Getting out there and having a go
Thirteen years ago the former Unichema Development Manager, Dr Robert Killick, and his wife Judy bought the 50-year-old Victorian Chemical Company. It was sink-or-swim. Now, with five times the sales and booming export growth, it is a different story. Bob thinks that, with the right approach, small and medium enterprises can make big inroads on the chemical deficit.

Technology is the key
As Chief of the Division of Chemicals and Polymers within the CSIRO at a time when it is increasingly orienting its research to commercial purposes, Dr Tom Spurling is at the interface between public sector research and industry. He feels that industry and government must look closely at technology to have any chance of redressing the chemical deficit ­ otherwise Australia will find itself importing both technology and products.

Victoria optimistic about attracting new investment
The Victorian Government is currently examining opportunities for investment in the chemical, plastics and rubber industries. Mr Richard Fowler, an industry specialist with Business Victoria, described the details of a study being undertaken for the state government by Stanford Research Institute.

High-value pharmaceuticals – a shining example, but still a way to go
Dr Graeme Blackman, Chair and Managing Director of the Institute of Drug Technology Australia Limited, described his company's progress from the consulting arm of a public educational institution to a small, yet serious and ambitious player in the high-risk business of developing the capacity for manufacturing active drug substances in the pharmaceutical industry.

Industry wants a better investment environment
Mr Michael MacKellar, Chief Executive of the Plastics and Chemicals Industries Association, presented the Forum with a wealth of data from the association's imports study, and concluded with a challenge for governments: they have to decide whether they really want balanced trade and be prepared to offer investment incentives to get it.

The role of government: Facilitating exports, encouraging investment
Mr Keith Croker, who heads the federal Department of Industry, Science and Tourism's resource processing industries branch, provided a perspective on issues the government is addressing and gave a commitment to work with the sector in the future.

DuPont's commitment to research partnerships
Mr Leo Hyde, DuPont Australia's Research and Development Manager, outlined what he sees as some of the basics of a good relationship between a private company and public research institutions and provided examples of his company's successful relationships with two Australian research providers.

Don't look for tax concessions, go for grants
With the Federal Government committed to tax reform, KPMG Chartered Accountants' plastics and chemicals group partner, MrRae Vecchio, outlined possible changes he felt would improve the industry's investment climate.

Discussion: Suggestions for action
The group discussions held as part of the Forum's afternoon program came up with a series of points that were later reported back to the final plenary session.