Home > Contents > Chapter 7 - Outcomes for science

Outcomes for science

Section 1 – Introduction
Section 2 – Key initiatives delivered during 2001-02 under Outcome 1
Section 3 – Summary of achievements against Outcome 1
Section 4 – Key initiatives delivered during 2001-02 under Outcome 2
Section 5 – Summary of achievements against Outcome 2

Section 1 – Introduction

Science functions in the Education, Science and Training portfolio will in future be reported under Output Group 3.2. However, this transitional year involves reporting for two portfolio structures. For the sake of clarity and simplicity, science functions will be reported on in this separate chapter, using the former Department of Industry, Science and Resources Outcomes and Outputs framework. Under that framework science functions were set out under two Outcomes and four Outputs as described below.

Outcome 1. A stronger, sustainable and internationally competitive Australian industry, comprising the manufacturing, resources and service sector.

Output 1.3 – Industry programme implementation and management:

Outcome 2. Enhanced economic and social benefits through a strengthened national system of science and innovation.

Output 2.1 – Strategic science and innovation leadership:

Output 2.2 – Science and innovation policy development and implementation:

Output 2.3 – Science and innovation programme implementation and management:

Details of actual performance against the performance indicators provided for each Output can be found at Appendix 9a.

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Section 2 – Key initiatives delivered during 2001-02 under Outcome 1

Outcome 1. A stronger, sustainable and internationally competitive Australian industry, comprising the manufacturing, resources and service sector.

Output 1.3 – Industry programme implementation and management

Radioactive Waste Management Strategy

The department is responsible for two projects to establish purpose-built, national facilities for the management of Australian radioactive waste. The two projects are: the national repository project for the underground, near-surface disposal of low level radioactive waste; and the national store project for the above-ground storage on Commonwealth land of intermediate level waste generated by Commonwealth agencies.

Progress on national radioactive waste management facilities is an important issue that will be taken into consideration in the licensing of a replacement research reactor. The national repository and national store will house radioactive waste generated by the reactor, as well as waste generated from the use of radioactive materials in medicine, industry and research.

Three sites near Woomera in central-north South Australia are currently undergoing environmental assessment for the national repository. During 2001-02, a draft Environmental Impact Statement was prepared and submitted to the Minister for Environment and Heritage for his decision on its release for public comment. A decision on the environmental assessment is expected in 2002-03. Licensing and land acquisition processes are also expected to commence during the year.

Three papers were released on the national store. In July 2001, a discussion paper was released as part of a public consultation process on the proposed method for finding a site for the facility. A paper was also completed on strategies for the long-term management and eventual disposal of Australia’s intermediate level radioactive waste. The paper was submitted to relevant Ministers and the Australian Radiation Protection and Nuclear Safety Agency. A paper responding to comment on the public discussion paper was released in May 2002.

Sites for the national store will be short-listed in 2002-03 taking into account public comment and consultation.

Rehabilitation of the test site at Maralinga

The Maralinga Rehabilitation Project to clean-up the former British atomic test site was completed in 2000. Australian Radiation Protection and Nuclear Safety Agency licence conditions have been complied with. These conditions include reports on the state of the Maralinga site after the completion of the clean-up and the commencement of a ground water monitoring program. A long-term management plan for the site is being drafted jointly with South Australia and the traditional owners, Maralinga Tjarutja. The plan is in an advanced draft stage and should be completed in 2002-03.

The final report of the Maralinga Rehabilitation Technical Advisory Committee is also at an advanced draft stage, and should be completed in 2002-03.

The Commonwealth, South Australia and Maralinga Tjarutja are progressing discussions on a draft deed of transfer to hand back the Maralinga site to South Australia for addition to the Maralinga Tjarutja freehold lands.

Defence of common law actions – atomic tests

At the end of 2001-02 there were six common law actions against the Commonwealth in the Federal Court. This is down from 13 earlier in the year. A decision on one matter, which was heard in 2001, is pending.

The department has responsibility for two administrative schemes, the Special Administrative Scheme and the Act of Grace Scheme. The Special Administrative Scheme provides compensation to any participant in the atomic test programme who has developed leukaemia (other than chronic lymphatic leukaemia) within the first 25 years of participation in the tests. One fortnightly pension was paid under this scheme in 2001-02, however the recipient died early in 2002 and there are now no payments being made. The Act of Grace Scheme enables plaintiffs with common law actions issued and served on the Commonwealth in 1988 and up to September 1989 to apply to have their cases assessed outside the court system. No payments are currently being made under this scheme.

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Section 3 – Summary of achievements against Outcome 1

The department’s key achievement under this Outcome has been the significant progress made in implementing a strategy for safely handling low and intermediate level radioactive waste arising from the activities at the Lucas Heights research reactor as well as that arising from the use of radioactive materials in medicine, industry and research. The issues associated with radioactive waste are inherently complex and controversial within some sections of the community.

The department has placed significant emphasis throughout the year on maintaining a transparent and systematic process in dealing with the siting of a national repository for low level waste and progressing the store for intermediate level waste.

In relation to Maralinga, this is the first time in the world that a clean-up of a test site on this scale has been completed. Australian Radiation Protection and Nuclear Safety Agency licence conditions have been complied with, which include the provision of reports on the state of the Maralinga site after the completion of the clean-up, and the commencement of a ground water monitoring system.

The Commonwealth is working towards the transfer of the Maralinga land to the South Australian Government for addition to the freehold lands of Maralinga Tjarutja during the coming year.

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Section 4 – Key initiatives delivered during 2001-02 under Outcome 2

Outcome 2. Enhanced economic and social benefits through a strengthened national system of science and innovation.

Output 2.1 – Strategic science and innovation leadership

Further development, measuring and monitoring of Backing Australia’s Ability initiatives

Backing Australia’s Ability provides a comprehensive and integrated package of measures to promote research, development and innovation totalling $3 billion over five years commencing in 2001-02.

The department undertakes whole of government monitoring of and reporting on the implementation of Backing Australia’s Ability. The coordination and monitoring function involves significant interaction with other departments and agencies administering Backing Australia’s Ability programmes. A whole-of-government Backing Australia’s Ability website is also maintained, at http://backingaus.innovation.gov.au.

The department provided advice and support to the Committee of Ministers overseeing the implementation of Backing Australia’s Ability. The Prime Minister chaired the Committee.

Overall, implementation of Backing Australia’s Ability programmes is on track, with funds being expended in line with the Government's January 2001 Backing Australia’s Ability announcement. The department also prepared and coordinated the Government's first annual Innovation Report, Backing Australia's Ability - Real Results Real Jobs, which was published in September 2001.

Setting national research priorities

Backing Australia’s Ability flagged the need to emphasise research in which Australia enjoys or wants to build competitive advantage. To that end, the Government has decided to establish national research priorities for key government-funded research programmes and agencies. Priority setting will assist and guide research funding decisions across a range of government-funded research programmes to achieve the best possible outcomes for Australia and Australians. Research priorities will build on other government initiatives over the past six years and ensure that public sector research funding helps to support innovation in areas of Australia’s strength, opportunity or need. The setting of national research priorities will be an on-going process that will build on, not replace, existing priority setting mechanisms that occur within research bodies and funding agencies.

The National Research Priorities Taskforce was established in February 2002. In May 2002, the taskforce released an Issues Paper, Developing National Research Priorities, to inform public debate on the proposed approach to setting priorities. The Taskforce supported a high level Consultative Panel to consult with the research, business and wider communities on the process and on nominations for priorities. The Panel held consultations in all capital cities and a number of regional centres. An estimated 800 people participated in the consultations and over 160 written submissions were received on the proposed framework. The consultative process revealed overwhelming support for national research priorities. Research priorities, set in the context of a strong and diverse research base, are expected to deliver significant benefits to Australia.

Foster the development of international science and innovation

Australia has 32 bilateral arrangements with 20 countries including France, Germany, Italy, the UK, the European Union, Japan, China, Korea, Taiwan, Malaysia, and Mexico. Australia also has five multilateral arrangements. These arrangements facilitate science and technology cooperation through the identification of areas of mutual benefit and the initiation of specific activities such as strategic workshops, missions, joint projects, and the exchange of people.

In 2001-02 the department undertook a range of activities to foster domestic and international collaboration in science and innovation. Some of the more significant activities follow.

Italian-Australian Technological Innovations Conference and Exhibition
During the course of the year the department was involved in extensive consultations to leverage support for the Italian-Australian Technological Innovations Conference and Exhibition. Funding of approximately $400 000 from the Italian Government, approximately $10 000 from the Victorian Government and airfare discounts valued at approximately $10 000 from Qantas was secured. The conference and exhibition was held in March 2002.

During the event, nearly 500 scientists, researchers, entrepreneurs and public officials participated in 16 workshops. This number included 205 from Italy. The workshops covered health and telemedicine, nanomaterials, the environment and environmental industries, the Antarctic, and commercialisation and innovation activities at the state and regional level. The workshops served to seal collaborative activities, including the signing of a memorandum of understanding between the Environment Chemistry Interuniversity Consortia of Marghera-Venice and the Centre of Green Chemistry of Monash University.

The workshops also initiated the examination of new collaborations, such as consideration by the Italian National Research Council’s Institute of Biomedical Technology and the Monash Institute of Health Systems Research of collaboration in the field of telemedicine.

Following the success of the Italian-Australian Technological Innovations Conference and Exhibition and the level of collaboration experienced, it is expected that a number of joint knowledge transfer activities will be held during 2002-03.

French-Australian Industrial Research Programme
This programme was established in 1991. Amongst its various activities, it has held seven major workshops aimed at bringing together French and Australian researchers and companies to facilitate joint projects in specific technology fields. Since 1998, these workshops have included representatives of 50 Australian organisations and 82 French organisations. From information available to the department, they have resulted in negotiations commencing for 57 joint projects. The Australian organisations include nine in food packaging, 11 in water and wastewater treatment, 16 in health information and 14 in medical diagnostics. The negotiations are expected to lead to research and development collaboration, technology transfer, staff exchanges and commercial arrangements such as distribution agreements.

A major outcome from the French-Australian Industrial Research Programme has been a separate series of workshops on radiopharmaceuticals. The most recent of which, held in 2002, focused on commercialisation.

The French-Australian Industrial Research Programme is currently being evaluated, to identify and quantify the benefits to participants from the support provided. Benefits that are being examined include research activity, increased linkages and increased skills as a result of involvement in international activities. A draft report is expected in late August 2002.

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Frontiers of Science and Technology Symposia
The Frontiers Symposia series were agreed upon with our Korean and Japanese partners at the joint science and technology consultations held with each country in March and June 2001 respectively. The intention of the symposia is to promote networks amongst leading researchers and identify areas for future collaboration.

Three symposia have been held so far. They were nanotechnology with Korea and Japan in July 2001, and biotechnology and bioinformatics with Korea in November 2001. To date, the outcomes of these symposia have been:

• an invitation from Korea for Australian researchers to join the Asian Association of Bioinformatics comprising Korea, Japan, China, Taiwan and Singapore;

• Korea's interest in pursuing further symposia and avenues for cooperation with Australia in biotechnology;

• the signing of a memorandum of understanding between CSIRO and Japan’s Advanced Institute of Science and Technology; and

• an invitation from Japan's New Energy and Industrial Technology Development Organisation for an Australian delegation to attend an International Nanotechnology Exchange Forum in Tokyo in February 2003.

National Innovation Awareness Strategy - science awareness component

The National Innovation Awareness Strategy aims to raise community awareness of the central role that innovation, science and technology plays in the achievement of Australia’s economic and social goals. The vision of the strategy is a nation that is aware of the importance of science and technology to our future success; whose citizens are well-informed about and comfortable in debating the important issues raised by science and technology; whose young people are giving due consideration to extending their formal schooling in science, engineering and technology; and that respects and supports entrepreneurship as career choice.

The Department of Education, Science and Training (Science and Technology Awareness Component) and the Department of Industry, Tourism and Resources (Innovation Awareness Component) administer the strategy. Policy advice on the strategy is provided by the National Innovation Awareness Council, chaired by Mr David Miles.

The National Innovation Awareness Strategy provides support for projects that raise awareness of the importance of science, innovation, technology and entrepreneurship for Australia’s future. Projects supported by the department during the course of the year include:

The Prime Minister's Prize for Science is Australia's pre-eminent science award. The Science Minister's Prize for Life Sciences and the Malcolm McIntosh Prize for Physical Sciences recognise and reward the world-class capabilities of young Australian scientists.

The Science Prizes Committee includes individuals of international standing in science. The committee recommends the recipients of all three science prizes to the Minister for Science. The Prime Minister and the Minister for Industry, Science and Resources presented these prizes at a gala ceremony in the Great Hall of Parliament House on 25 September 2001. The winners in 2001 were:

The Minister for Education, Science and Training announced two new awards in June 2002. They are the Prime Minister’s Prize for excellence in teaching in primary schools and the Prime Minister’s Prize for excellence in teaching in secondary schools. The awards will recognise individuals who make an outstanding contribution to science teaching.

Commonwealth funding was provided on a competitive basis from the National Innovation Awareness Strategy in 2001-02 to provide support for projects that raise awareness of the importance of science, innovation, technology and entrepreneurship for Australia’s future. Major Innovation Awareness Strategy grants seek to encourage young people to look closely at these fields of endeavour as rewarding career paths. The grants support projects that will raise awareness and/or demonstrate the importance of science, innovation, technology and entrepreneurship to the Australian economy.

National Science Week project grants are targeted at young people, women, industry, business leaders and the media as well as more broadly to the community, societies, businesses, industry bodies and individuals. The intention is that everybody involved should pull together to take science out of the laboratories and into the community. Anyone can join in the National Science Week, either by organising an event or by attending one.

National Science Week is a partnership between Commonwealth Government, represented by the Department of Education, Science and Training together with the Department of Industry, Tourism and Resources, and the Australian Science Festival; the Australian Broadcasting Corporation; and the Australian Science Teachers’ Association. The partners work together to bring about national strategies for promotion and coordination of National Science Week.

Science Week was originally held in May. The week is now held in August as it better fits in the school curriculum calendar.

The Rio Tinto Science Olympiads encourages excellence in science by selecting and training students to represent Australia in International Olympiads in biology, chemistry and physics.

The Eureka Prizes raise the profile of science in the community by acknowledging and rewarding outstanding achievements in Australian science and in the promotion of science. Established in 1990, the Eureka Prizes have grown into Australia's most comprehensive national science awards.

Science Meets Parliament provides parliamentarians with an opportunity to better understand the importance of science, its potential and achievements in Australian science.

Following the Christmas 2001 bushfires in New South Wales, support was provided to coordinate a science-based response to the bushfire threat. The Minister for Science established a Bushfire Research Advisory Group to ensure better coordination of the national bushfire research effort, including through support for the development of a Cooperative Research Centres funding application, and greater public awareness of bushfire issues.

In response to the hazard presented to swimmers by Irukandji jellyfish in North Queensland, an Irukandji research workshop was held in Townsville in May 2002. National Innovation Awareness Strategy funding to support research into the hazard was provided through the Great Barrier Reef Research Foundation.

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Management of the work programme of the Prime Minister’s Science, Engineering and Innovation Council; the Coordination Committee on Science and Technology; and the Chief Scientist

The Prime Minister’s Science Engineering and Innovation Council
This Council is the Government’s principal source of independent and external advice on issues in the fields of science, engineering and innovation. The Prime Minister chairs the Council.

The department provides secretariat support to the Council and its Standing Committee and various working groups. The Prime Minister’s Science, Engineering and Innovation Council held one meeting during 2001-02. Issues dealt with included commercialisation of public sector research, mineral exploration, developmental health and wellbeing, aquaculture, sustaining our natural systems and biodiversity and Australian industry’s sustainable competitiveness.

During 2001-02 the following new ex-officio members were appointed:

In addition, Emeritus Professor Donald Metcalf AC, the 2001 winner of the Prime Minister’s Prize for Science, was appointed for one year.

Coordination Committee on Science and Technology
The department also supported the high-level, cross-portfolio Coordination Committee for Science and Technology. The Committee, met three times during the course of 2001-02. One of its more significant achievements has been to instigate a more active dialogue with the States and Territories, with Victoria briefing the Committee on policy and programme developments during the year.

Commonwealth Chief Scientist
The Chief Scientist, Dr Robin Batterham, was re-appointed for a further three years and continued throughout the year to pursue an active engagement with members of the science, engineering and technology community in Australia and overseas. The Chief Scientist continued to serve on a number of significant boards and committees such as the Board of the Australian Research Council and the Cooperative Research Centres Committee. He also continued to act as the Executive Officer to the Prime Minister’s Science, Engineering and Innovation Council and as an adviser to the Ministerial Implementation Committee overseeing Backing Australia’s Ability.

In November 2001, the Chief Scientist was requested by the Government to undertake a review of the external earnings targets policy applying to the three portfolio science authorities. They are the Commonwealth Scientific Industrial Research Organisation, the Australian Nuclear Science and Technology Organisation and the Australian Institute of Marine Science. The final report was delivered to Government early in June 2002.

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Output 2.2 – Science and innovation policy development and implementation

Science and technology policy analysis and advice

Throughout the year, the Science Group contributed to a stronger Australian science, research and innovation capacity by providing advice on the development and implementation of policy for Australia’s science and technology base.

Advice was provided in relation to drafting and passage through Parliament of the Research Agencies Legislation Amendment Bill 2002. This Bill will amend the Australian Institute of Marine Science Act 1972 and the Australian Nuclear Science and Technology Organisation Act 1987 to remove impediments to commercialisation of science and technology by the Australian Institute of Marine Science and the Australian Nuclear Science and Technology Organisation. The Bill was introduced in the Parliament in March 2002 and, as at 30 June 2002, was under consideration by the Senate Employment, Workplace Relations and Education Legislation Committee.

Policy advice was provided in the selection of new Major National Research Facilities, which was successfully concluded with the announcement of 15 new facilities in August 2001. Further information on the implementation of this initiative can be found in Output 2.3.

Policy advice was provided in the development of the Quantitative and Qualitative Outcomes Study of the Cooperative Research Centres Programme. The study was undertaken by a joint team from the International Business Research Institute and the University of Wollongong. The study was completed in May 2002.

The department produced an updated version of the 2002 CRC Compendium which provides an important reference tool detailing information on each of the Cooperative Research Centres funded under the Cooperative Research Centres Programme.

Guidelines for the Cooperative Research Centres Programme 2002 selection round were also revised to take account of its expansion under Backing Australia’s Ability.

Following the transfer of the science function to the Education, Science and Training Portfolio, policy advice and support was provided to the portfolio Ministers in relation to their respective memberships of the Sustainable Environment Committee of Cabinet, the Commonwealth Biotechnology Ministerial Council, the National Oceans Ministerial Board and the National Food Industry Council as well as the Ministerial Council Oversighting the Implementation of Backing Australia’s Ability.

Other activities during 2001-02 included advising on policy issues related to biotechnology and stem cell research and advising on issues related to the Australian Synchrotron project.

The department also produced a pocket edition of indicators focusing on a range of issues relating to the overall performance of Australia’s innovation system, Australian Science and Technology at a Glance 2002.

Review of Australia’s science and technology agreements

During the year a review of Australia’s science and technology agreements was undertaken to determine their coverage, effectiveness, efficiency and impact. The review indicated that:

At the same time the review highlighted the need to continue to explore new opportunities for cooperation and to further build consultative links with Australia’s public and private sector science and technology communities and with key partner economies.

Establishment and implementation of formal science and technology agreements with other countries facilitates access to world-leading science and technology and promotes the uptake of new and leading edge technologies by industry. This contributes to Australia’s economic and social wellbeing.

In an increasingly complex and globalised world, international science and technology cooperation is expanding because of advances in information and communication technologies. International cooperation also helps to overcome the costs and complexities of scientific activity and to achieve the increasingly tight deadlines imposed by competitive forces. For a country such as Australia, which derives most of its science and technology from overseas, integration into world-class global science and technology activity is vital to our ability to innovate effectively. Therefore international cooperation is vital to our future economic and social wellbeing.

Formal government-to-government science and technology agreements yield mutual benefits to partner economies by promoting science and technology cooperation and by providing a forum for exchange of information about science policy and activities.

Implementation of the Innovation Access Programme

An important initiative announced under Backing Australia’s Ability was the establishment of the Innovation Access Programme. The Programme will assist Australian firms through activities such as bringing global specialists to facilitate the practical transfer of world-class technologies, skills and expertise, and assisting industry groups to undertake overseas technology study missions.

The Programme supported Australia’s participation in the work programme of the OECD Global Science Forum. Support was provided for the Australian Vice-Chair of the Forum and other relevant Australian scientists to attend Forum meetings and appropriate workshops and meetings. During the year, Australia participated in work programme activities in areas such as High Energy Physics, Neuroinformatics, Large Scale Facilities for the Structure and Dynamics of Matter, Radio Astronomy and the Radio Spectrum and Near Earth Objects. The department also provided support to Australia’s membership on the Steering Committee of the International Cooperation Study.

The Innovation Access Programme also supported the work of the Global Biodiversity Information Facility. This facility originated as an OECD Megascience initiative and has become an international endeavour including non-OECD participants. It will be a distributed network of databases containing the world's biodiversity information. To date, 44 countries and intergovernmental organisations have signed the Global Biodiversity Information Facility Memorandum of Understanding. Australia successfully hosted the fourth meeting of the Global Biodiversity Information Facility Governing Board in Canberra in March 2002. The department, Environment Australia, CSIRO, the Australian Research Council, and the National Health and Medical Research Council share Australia’s annual membership fee equally.

One of the key initiatives under the Innovation Access Programme was the provision of support for the Strategic Showcasing initiative. The initiative involves the strategic demonstration of Australian science, engineering and technology and innovation capabilities internationally. During the year, the department supported the following activities under this initiative:

Overall, under the Innovation Access Programme – international science and technology component, the department supported 34 collaborative projects and activities with key partner countries including China, Korea, Japan, the EU, Germany, France, Indonesia and the USA. The sectors of science and technology activity included robotics, information technology, biotechnology, the built environment, medical technology and aquaculture.

Lucas Heights research reactor – monitoring construction of a new reactor and treatment of spent fuel

A high level of policy support was provided in relation to the replacement research reactor at Lucas Heights – Australia’s largest single science investment. This support covered advice to the Minister on the licensing process for the reactor. It also covered reporting progress on the project and on arrangements for overseas treatment of spent fuel from the reactor before its eventual return to Australia.

The department has worked closely with the Australian Nuclear Science and Technology Organisation to ensure that the Minister for Science was adequately briefed on issues related to the Organisation’s operations. These include the physical security of radioactive material and the security of the Lucas Heights’ site. The head of the department’s Science Group is a member of the Australian Nuclear Science and Technology Organisation Board.

The department coordinated the Government’s response to the report of the Senate Select Committee for an Inquiry into the Contract for a New Reactor at Lucas Heights, A New Research Reactor? which was presented to the Senate on 27 March 2002.

The Chief Executive of the Australian Radiation Protection and Nuclear Safety Agency issued the construction licence for the replacement research reactor on 5 April 2002. Construction of the project has commenced by the Argentinian company INVAP S.E. and its Australian alliance partners, John Holland Construction and Engineering Pty Ltd and Evans Deakin Industries Limited. The 2002-03 Budget includes an equity injection of $104m to the Australian Nuclear Science and Technology Organisation for the replacement research reactor project.

Federation Fund Projects

Science Group is responsible for administration of two Federation Fund projects, the National Marine Science Centre and the Institute for Molecular Bioscience.

A total of $12m was allocated under the Federation Fund to the University of New England and Southern Cross University to establish the National Marine Science Centre in Coffs Harbour, NSW. The Centre is a research and teaching facility with a regional focus accessible by up to 500 secondary and tertiary students annually. The Deputy Prime Minister, the Hon John Anderson MP officially opened the Centre in November 2001.

A total of $15m was allocated to the University of Queensland to establish the Institute for Molecular Bioscience with CSIRO on the University of Queensland campus. The project has a total cost of $105m. When complete the Institute will be a centre of excellence in molecular bioscience and a major hub for bio-industries in the Asia-Pacific region. Construction of the Institute for Molecular Bioscience will be completed in late 2002.

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Output 2.3 – Science and innovation programme implementation and management

This section relates to programme delivery activities which were formerly administered by AusIndustry within the former Department of Industry, Science and Resources and were transferred to the Department of Education, Science and Training following the Administrative Arrangements Order of 26 November 2001. Given that the policy and programme functions were split prior to 26 November 2001, Outputs 2.1 and 2.2 make reference to policy activities undertaken in support of programmes detailed under this output.

Cooperative Research Centres Programme
The Cooperative Research Centres Programme was established in 1990 to strengthen collaborative links between industry, research organisations, education institutions and government agencies. The programme promotes collaboration between researchers and research users in the private and public sector to maximise the capture of the benefits of publicly funded research through commercialisation or utilisation of the outcomes of that research.

In 2001-02, there were 64 Centres operating in the following research fields: manufacturing technology; information and communication technology; mining and energy; agriculture and rural-based manufacturing; environment; and medical science and technology. By the end of June 2002, two Centres completed their funding period under the programme, leaving a total of 62 Centres.

The Centres receive approximately $145m of Commonwealth Government funding per year under the Programme. Since the Programme's establishment a total of $7 337m has been contributed or committed by all participants in Cooperative Research Centres in the form of both cash and in-kind. This includes $1 813m committed by universities, $1 806m by the Commonwealth Government under the Cooperative Research Centres Programme and $1 340m directly by industry.

As announced in Backing Australia’s Ability, an additional $227m of Commonwealth funding will be allocated to the Programme over the three years 2003-04 to 2005-06. This funding will support an increased number of Cooperative Research Centres, larger grants for Centres, increased international collaboration, and enhanced participation by small to medium enterprises.

Following the 2000 selection round, the department concluded contract negotiations with the 19 successful applicants to enable funding to commence on 1 July 2001. During 2001-02, the department also conducted second year reviews for the 26 Cooperative Research Centres established in the 1998 selection round.

On 3 October 2001, applications were called for the 2002 selection round. At the closing date of 29 May 2002, 57 applications had been received. The applications, including 17 supplementary applications, were submitted from every State and Territory, with a strong focus in the fields of agriculture, the environment, and medical sciences.

During the course of the year, first year visits and second and fifth year reviews of the Cooperative Research Centres established in the 1996, 1998 and 2000 selection rounds were undertaken.

The Programme is contributing to the delivery of Outcome 2 by enhancing:

An increased focus on commercialisation and utilisation of research activity is being pursued and this is reflected in changes to the Programme guidelines. Greater involvement of small to medium enterprises and enhanced international collaboration are also key strategic priorities for the Programme. The importance of creating critical mass in research effort is also a focus, with one of the stated objectives of the additional Backing Australia's Ability funding being to provide larger grants for each Centre.

Based on a customer satisfaction survey undertaken by Orima on behalf of AusIndustry in July 2001, 82 per cent of respondents were satisfied with the delivery of the Cooperative Research Centres Programme (three per cent were dissatisfied).

Major National Research Facilities Programme

The Major National Research Facilities Programme encourages partnership investment in world-class national research infrastructure. Investment is encouraged between the Commonwealth, State and Territory governments, universities, research agencies in the public and private sectors, individuals and industry. The Commonwealth provides up to 50 per cent of the Major National Research Facilities total eligible project costs with the balance provided by participant organisations, supporting agencies and users of the facility. The investments in research infrastructure of national and international significance will help ensure that Australia keeps pace with rapid developments in science and innovation.

The Major National Research Facilities Programme, a Backing Australia’s Ability initiative, provides $155m over five years from 2001-02 to fund:

A total of 15 proposals were selected from 86 applications. The successful Major National Research Facilities were announced on 21 August 2001 by the then Minister for Industry, Science and Resources. The department undertook intense negotiations with successful facilities to improve alignment between their collective annual bids for funding and the Programme’s forward estimates. After the facilities accepted the department’s formal offers of annual allocations, contract negotiations were undertaken to finalise Commonwealth Deeds of Agreement with the facilities. The chosen facilities have developed business plans to enhance existing research facilities or establish new facilities.

Total funding of $4.517m was provided to the Major National Research Facilities in the 2001-02 financial year.

The Programme contributes to the Government’s commitment to three key elements of the innovation process: to strengthen our ability to generate ideas and undertake research; accelerate the commercial application of these ideas; and develop and retain Australian skills.

Innovation Access Programme – international science and technology

Two special funds have been established to promote international science and technology cooperation.

Australia-China Special Fund for Scientific and Technological Cooperation
A memorandum of understanding with the Chinese Ministry of Science and Technology established the Australia-China Special Fund for Scientific and Technological Cooperation in 2000. The fund supports joint projects that draw on complementary technology strengths in Australia and China and benefit both countries. The Australian Government provides $250 000 each year to the Special Fund, sourced from the Innovation Access Programme. Priority areas for cooperation are advanced materials, agriculture, biotechnology, the environment, and mining and energy. However, any project of sufficient merit is able to gain funding.

In 2001 six projects were chosen for joint funding. An additional 34 projects received unilateral funding from the Chinese Ministry of Science and Technology and the National Natural Science Foundation of China. These projects are currently on schedule and proceeding well. In 2002, eight projects were chosen for joint funding. Both Chinese organisations agreed that an additional eight projects would be funded, provided that the Australian partners apply for, and receive, funding from other sources.

Australia- Korea Pilot Industrial Technology Cooperation Fund
The Australia-Korea Pilot Industrial Technology Cooperation Fund was established in December 2000. The Fund supports the research and development element of collaborative projects involving joint research and development and commercialisation between Australian and Korean small to medium enterprises. Both Governments are to contribute $250 000 per annum for three years, with businesses matching the level of public support. The Pilot Fund will be evaluated in 2003 to assess the scope for a more substantial fund.

Over the last two years, the Pilot Fund has been fully expended.

In 2000-01, funds went to a project between the Australian Magnesium Corporation and a Korean business partnership lead by a commercialisation arm of Seoul University. The project was on the development of magnesium alloys for use in the automotive industry.

In 2001-02, funds went to a project between Advanced Powder Technologies Pty Ltd (Australia) and Samsung Corning Co for the development of nanopowder polishing slurries.

Outcomes from the 2000-01 project are expected to be available in early 2003. Initial outcomes from the second year project will be available in mid 2003.

Both these programmes have been closely integrated into the department’s overall international science and innovation activities following their transfer from AusIndustry.

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Section 5 – Summary of achievements against Outcome 2

It must be recognised that the achievement of Outcome 2 will be influenced by a large number of factors outside the department’s control or direct influence. These include the activities of other Commonwealth departments and agencies, State and Territory Government initiatives, private sector investments and international developments. Nonetheless the broad range of activities undertaken and outputs produced by the department contributed to the strengthening of Australia’s system of science and innovation both directly through programme outputs and indirectly through strategic leadership activities. While direct measures of the resultant contribution to enhanced economic and social benefits are very difficult to establish, the partial indicators that are available indicate that a positive input is being made.

A key focus throughout 2001-02 was the monitoring and reporting on the implementation of Backing Australia’s Ability. This was a significant challenge given the whole of government nature and scale and scope of the initiatives. The initiatives are being rolled out in accordance with the timetable set in the Government’s announcement of Backing Australia’s Ability.

Significant milestones were achieved in implementing the science-related Backing Australia’s Ability enhancements to the science programmes. This included successful completion of selection of Major National Research Facilities, commencement of the selection process for the 2002 round of Cooperative Research Centres, and completion of grant rounds under the Innovation Access Programme and National Innovation Awareness Strategy.

In addition, significant progress was made in developing strategies to respond to a number of the longer term issues that were identified in Backing Australia’s Ability; in particular, initiation of a process for the development of a national system of priority setting for Australia’s key government research agencies. A transparent process involving extensive public consultations and engagement with Australia’s scientific community was established. The degree of interest and engagement shown by the community through this process will assist in the identification of priority areas and the implementation of a national system in the coming year.

As part of Australia’s continuing effort to improve its international scientific and technological standing a number of significant successes were achieved in 2001-2002. These included lifting the level of engagement by Australian researchers with countries in the European Union and further strengthening of bilateral links with researchers in Japan and Korea. This effort has been supported through the international science and technology component of the Innovation Access Program which provided support for some 34 collaborative projects and activities with key partner countries around the world in fields as diverse as aquaculture, robotics, biotechnology and information technology.

The department provided a high level of support for the Chief Scientist during the year, particularly in relation to his review of the external earnings targets policy applying to the Commonwealth Scientific Industrial Research Organisation, the Australian Nuclear Science and Technology Organisation and the Australian Institute of Marine Science.

The department successfully supported the Prime Minister’s Science, Engineering and Innovation Council and its various working groups. The Council’s meeting in May 2002 was very influential in raising the profile of aquaculture on the Government’s policy agenda and providing an alternative public policy model for addressing biodiversity issues.

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