canberra

A long-awaited statement on industry policy by Australia's Coalition government has reprieved the Cooperative Research Centres (CRCs) from closure, and dropped a proposal that national research agencies and universities should substantially increase their external earnings.

In addition, recent cuts in government support for industrial research and development have been partially restored, while the board responsible for that programme has escaped abolition.

A major review by the businessman David Mortimer had proposed that funding to the 65 CRCs be cut from an annual A$146 million (US$108 million) to A$20 million. But the association of CRCs predicted this would lead to the “devastation” of a programme that combines the work of universities, research agencies and industries in targeted projects. Chief scientist John Stocker attacked Mortimer's recommendation.

Mortimer also wanted the research agencies to increase their external earnings, the largest, the Commonwealth Scientific and Industrial Research Organization (CSIRO), “from 30 to 50 per cent”. But the CSIRO's chief executive, Malcolm McIntosh, said Mortimer “used the wrong base” and the change “would cripple strategic research and destroy CSIRO” (see Nature 388, 509 1997 & Nature 388, 509 1997.)

Mortimer proposed a billion-dollar investment fund to improve industrial competitiveness. This would have been created partly from cuts to research, and the government's rejection of this idea has allowed the reprieve for science. But some of Mortimer's recommendations have been accepted, notably the setting of an economic growth target which the government has pitched at “over 4 per cent over the decade to 2010”.

The package contains several measures costing A$1.2 billion over five years. Direct funding of business R&D through a grant sccheme called START has been extended by A$139 million annually to a total of A$739 million over four years. The government did not respond to the pleas of industrialists and scientists for restoration of a 150 per cent tax concession for in-house company R&D. The rate is left at 125 per cent.

The Labor Opposition spokesman on industry, Simon Crean, calculates that funding cuts to R&D have been A$2 billion over the 1996 and 1997 budgets, only a quarter of which have now been restored.

But the industry, science and tourism minister, John Moore, says the START scheme targets “quality R&D” and the overall policy will “build vibrant, internationally competitive industries”.