Editorial 25 May 2001

 Excerpts from the Federal Government Portfolio, Budgets and Priorities 2001-02

Below is a small part of the budget papers 2001/02 dealing with research and development. The full set can be obtained from the Department of Industry Science and Resources' Web site. 

The AMA's Dr Kerryn Phelps' one liner regarding the budget's support for the medical profession, would seem at least as apt with regard to R&D -- "Steady as she sinks".

Ranking of Support for Research and Development by six "small" countries -  based on National GDP

Derived from the Government's "Australian R&D Indicators in an International Context (May, 2001)"

Budgets & Priorities - EDUCATION, TRAINING AND YOUTH AFFAIRS

Science and Technology in the Portfolio Budget Through the Education, Training and Youth Affairs portfolio, Australian universities are estimated to access approximately $1.9 billion in 2001-02 to support research and research training. This estimate comprises over $1.6 billion of funding under the Higher Education Funding Act (HEFA) 1988 including $1007.5 million in program funding administered by the Department of Education, Training and Youth Affairs (DETYA) and approximately $600 million as an estimate of additional funding sourced from universities' operating grant. The remainder includes the Australian Research Council's National Competitive Grants Program (NCGP) ($262.4 million) to be funded under the new Australian Research Council Act 2001, and other Budget appropriations ($6.1 million).

Funding allocations at the Scheme level are provided on a calendar year basis for the year 2001.

University Operating Grants The Commonwealth is the major source of research income for universities and, given that universities perform the bulk of Australia's basic research, the major source of funding for basic research in general. Universities' operating grants also provide a source of funding for research activities.

The estimate of the total funding sourced by universities from the operating grant is based on the Australian Bureau of Statistics (ABS) survey of research expenditure of universities by source of funds (the ABS methodology is outlined in Research and Experimental Development, Higher Education Organisations (8111.0)). One of the sources of funds for research expenditure identified by the ABS is General University Funds (GUF). Universities' operating grants comprise the major part of GUF, and can be estimated by using the operating revenue figures available in the DETYA Selected Higher Education Finance Statistics. Using this method, additional funding sourced from university operating grants for calendar year 2001 is estimated to be approximately $800 million.

In 2001, within this estimate, two elements of operating grant funding can be identified:

· The Research Quantum (RQ): The RQ is a component of universities' operating grant which is allocated to institutions on the basis of research performance, as measured by the Composite Index. In 2001, RQ funding will total $228.1 million. In 2002, the RQ will be incorporated into the new Institutional Grants Scheme.

· Funding for the schools and centres of the Institute of Advanced Studies (IAS) of the Australian National University. The block grant for the IAS is estimated to be approximately $154 million for 2001. From 2002, the new research funding framework will make provision for the IAS to access performance-based funding, through a contribution from this block grant.

In calendar year 2002, with the cessation of the RQ, the estimated funding sourced from university operating grants is estimated to be approximately $600 million.

Institutional Grants Scheme

The Institutional Grants Scheme (IGS) will support the general fabric of institutions’ research and research training activities, and assist institutions in responding flexibly to their environment in accordance with their own strategic judgments. Funding under the IGS will be allocated on the basis of a formula that reflects success in attracting research income from a diversity of sources (60 per cent), in attracting research students (30 per cent), and in the quality and output of its research publications (10 per cent). Research income from all sources will be equally weighted. The Scheme absorbs funding previously allocated for the Research Quantum and the Small Research Grants Scheme.

Research Training Scheme

This Scheme will provide funding for research training according to a performance-based formula. Institutions will attract a number of scholarship places based on their performance through a formula comprising three elements: numbers of all research students completing their degrees (50 per cent research; income (40 per cent); and publications (10 per cent). The value for each element will be the average of the latest two years’ data.

Research Infrastructure Block Grants

The Research Infrastructure Block Grants Scheme will continue under the new framework. Additional funding for this scheme has been made available under the Innovation Action Plan, Backing Australia's Ability (see Section 2).

Systemic Research Infrastructure

The Systemic Research Infrastructure Scheme was announced in the Innovation Action Plan, Backing Australia's Ability, and is directed primarily towards infrastructure projects which have strategic benefits for the sector as a whole. There will be $25.7 million available in 2002 when this Scheme commences (see Section 2).

Knowledge and Innovation

Higher education research and research training priorities

The funding and policy framework for research and research training announced in Knowledge and Innovation in December 1999 will continue to drive priorities, as implementation continues during 2001/02. This framework is designed to:

· ensure Australia is able to maintain and develop its research competence and international credibility across a wide range of fields of knowledge;

· facilitate the provision of diverse, high quality research training environments;

· expand opportunities and choice for research students;

· encourage the expansion of the total national investment in research;

· enable research organisations to respond flexibly to changes in the development of and demand for knowledge;

· extend the contributions of higher education research to the national innovation system through closer links with industry; and

· support the development and dissemination of knowledge for its own sake as well as the economic, social and cultural benefits it will bring to the wider community.

The major objectives and planned achievements for the Department of Industry, Science and Resources (ISR) in 2001-02 include the:

•  provision of strategic leadership in industry and science;
•  development and implementation of industry, science and innovation policy;
•  effective design and management of industry and science programs;
•  promotion and facilitation of investment in Australia; and
•  delivery of effective scientific business services.

Major National Research Facilities (MNRF) Program

The MNRF Program is directed at keeping Australia at the leading edge of scientific and technological developments. Under the Program, funding is provided for facilities in a range of key scientific fields where the establishment costs are beyond the capacity of any individual Australian institution. These facilities create centres of capability for pursuing research with state-of-the-art equipment.

CSIRO

CSIRO seeks to secure maximum benefits from R&D for Australia by assembling strong interdisciplinary teams that are internationally competitive, and focusing effort on those areas where there are firm signals of strong commercial or community support for CSIRO's research. CSIRO's planned investment of appropriation funds for its output groups are in the accompanying table.