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ACADEMY BUDGET RESPONSE
10 May 2000

Will there be a knowledge base for the knowledge-based economy? Perhaps, but not this year.

The Government has indicated previously that it will consider the state of research and innovation when it receives two reports later this year (the Chief Scientist's review of Australia's science capability, and the report of the Innovation Summit Implementation Group).

This year's budget continues into a fifth year the Government's policy of attrition of the higher education sector's research capacity.

While the Minister for Education, Training and Youth Affairs has acknowledged the critical state of many of our universities, the budget proposes no remedy.

For Australia's university researchers, who produce most of the knowledge and skills base on which our innovators can build, the dismal trend of inadequate grants, low success rates and uncertain career paths is unabated. This, coupled with the significant increases in research expenditure in many other countries, will continue to drive Australia's best and brightest overseas.

It is regrettable that this continued neglect is compounded by some cuts to research resources.

It appears that a modest increase in research grants through the Australian Research Council will be funded by a cut to the money allocated directly to institutions.

We note that the welcome funding of the Government's biotechnology strategy is to be taken from the existing Technology Diffusion Programme.

CSIRO will be stripped of $107 million of its existing asset base over three years, for which it receives no compensating benefit. As a result, CSIRO's future research funding will be more uncertain, depending on the rents set by the new owners of the research facilities that are to be sold off, and the vagaries of future government appropriations.

We can only hope that next year, as a result of the advice the Government receives from its own reviews, there is an injection into government thinking of a new sense of urgency.

It is also essential that there be an urgent injection of significant new funds for research and development. That should not wait for the next budget.