Budget '09: Modest Science Funding Increases but Little Else for the Sciences

I thought I should probably post something serious for once.

I was hoping there might be something in the Budget for IP lawyers. I was disappointed, though not surprised.

Wait... oh, I said I'd post something serious. Anyway, I decided to look at what the Budget was offering my clients. The best thing for them would be a big increase in R&D spending, or incentives to encourage private sector R&D spending.

Incentives? Nah!

Well, there were no real incentives, but then none were expected. The Government showed when it scrapped the R&D Tax Credit System that it was an administration devoid of vision or imagination. They put on their accountants' caps and decided that the whole R&D Tax Credit System had been designed to keep bean counters busy. That the system might have actually encouraged investment in this country's research and science industry never entered their minds.

The irony of course is that the Government campaigned in the last election on trying to keep people from leaving for Australia in droves. Of course, Australia has an R&D Tax Credit system, so it's a wonder we still have any R&D in this country.

Increases in funding? Yeah, but modest

It's fair to say nobody seriously expected any major increase in RS&T (Research, Science and Technology) funding. But there were some winners, and the overall spend was increased.

CRI Capability Fund

Crown Research Institutes (CRIs) are a big winner. The CRI Capability Fund is increased for the next four years by $10 million to $61 million. This Fund amounts to about 8% of total CRI revenue.

The CRI Capability Fund was established in July 2005. It is a source of funding administered by Ministry of Research, Science and Technology and is available only to CRIs. CRIs are Crown-owned companies. There are 8 CRIs: Agresearch, Plant and Food Research, ESR, Scion, GNS, IRL, Landcare Research and NIWA.

Marsden Fund

The Marsden Fund gets a major funding boost. Funding will rise from the current level of $37.88 million per year to $46.88 million per year for the next four years, from 1 July. This is a 24% increase, and is the largest increase in the Fund’s history.

The Marsden Fund was established in 1994. It is a contestable fund administered by the Royal Society of New Zealand on behalf of the Marsden Fund Council. It funds science that contributes to the global advancement of knowledge. Researchers are not required to undertake research that aligns with government priorities, unlike with other RS&T funds.

Health Research Council

The Health Research Council of New Zealand (HRC) gets a funding increase of $8 million per annum for the next four years, a 13% increase.

The HRC is the Crown agency responsible for the management of the Government's investment in public good health research. Ownership of the HRC resides with the Minister of Health, with funding being primarily provided from Vote Research, Science and Technology.

PBRF

The Performance Based Research Fund (PBRF) gets $250 million per annum.

The PBRF is a fund administered by the Tertiary Education Commission. It was established in 2003. The PBRF is a research fund available to tertiary institutions.

Primary Growth Partnership

A new Primary Growth Partnership is established, with injections of $30 million, $40 million, $50 million, and $70 million over the next four years. This fund will match private sector investment in the primary sector. Details of the fund are to be announced on 2 June.

Science Prize

A Prime Minister’s Science Prize of $1 million per annum, has been announced. The amount may be modest, but it offers prestige and publicity to the winner.

Verdict

While the increases are welcome, they arguably do not make up for the scrapping of the $700 million Fast Forward Fund.

Some people will criticise the Government for not doing more to encourage R&D, and investment in RS&T. And yet I suspect nobody was unpleasantly surprised by the Budget. That any increases at all were announced may surprise many.

On the other hand, the current Government does not appear to consider spending in RS&T a high priority. So the Budget probably gets a pass mark, but only just.