Knowledge and Innovation: A policy statement on research and research training

4.          Regional support

4.1        Overview

The discussion paper acknowledged that higher education institutions play a vital economic, social and cultural role in their local communities, generating a wide range of employment options and contributing to the development of regional Australia. It also acknowledged that, in responding to the new policy and funding framework, many institutions may need to reassess and refocus their research activities. In recognition that the proposed framework would impact on institutions in different ways, an adjustment package was foreshadowed in the discussion paper to assist the transition.

Consultations also highlighted the opportunities for regional institutions, and indeed universities generally, to make a stronger contribution to sustainable regional development. By focusing on their areas of research strength and improving their linkages with industry in the regions, as well as their local communities, universities are in a unique position to transfer knowledge and skills into initiatives for economic growth, environmental improvement and community development. The Government is keen to facilitate this outcome.

During the consultations, some regional institutions in particular indicated that they would benefit from an on-going programme targeted to address regional issues, based on competitive application.

The allocative formulae proposed in this statement will ensure that any initial adverse impacts on institutions are minimised. In addition, winners have been capped at five per cent. Whilst future funding will be determined on the basis of each institution’s performance, the Government will ensure a heightened attention to research of benefit to regional Australia, and will also ensure that no regional institution will suffer a deterioration in its research funding, from its starting position, in the first three years of the new arrangements. To achieve this, a comprehensive package of support for regional institutions has been developed.

4.2        Regional package

The regional package will assist universities to develop regional connections, foster a shift towards a more entrepreneurial framework, concentrate research activity into areas of strength, and assist institutions to take advantage of opportunities presented through new fields of research. Key elements of the package are:

  • $10 million for a collaborative research programme on issues of benefit to regional and rural communities; and

  • $6 million over three years, and limited to three years, to ensure no regional institution suffers a deterioration in its research funding from its starting position.

This is further supported through the other elements of reform in this statement:

  • maintenance of the balance between basic and applied research through the ARC’s competitive schemes in the interim period;

  • allocation of student places through a block fund, according to a performance-based formula; and

  • a quality verification framework to help all institutions demonstrate and focus their research activities.

Many universities are engaged closely in the social and economic development of their communities and a number of major metropolitan universities with regional campuses are also benefiting from initiatives that integrate their research strengths with their regional locations. This approach can assist in revitalising many rural and regional communities.

Within current budgetary restraints, it is proposed that the current balance between basic and applied research through the ARC’s competitive schemes be maintained, with the current average grant size also to be retained for the time being. The consultations demonstrated concern that any change to the program balance, or to increase grant sizes without making further funding available, may impact adversely on smaller and regional institutions.

4.3        Response to incentives

The new structure of incentives will enable regional institutions to build up their capacity in particular fields and improve their contribution to the needs of regional communities. This is already taking place at a number of regional institutions. Some excellent examples are Southern Cross University, Charles Sturt University, Central Queensland University and The University of New England. These institutions have already begun the process of prioritising their research activity.

Some regional institutions, such as the University of Tasmania, have already put in place a strategy to capitalise on their research strengths and link to their regions. The University of New England is withdrawing from fields where their research performance has been declining to build up those areas where it will be competitive. Others will have particular strengths and circumstances that improve their performance; for instance, James Cook University’s addition of a medical school will significantly expand its research income and research training capacity.

4.4        Regional Funding

As the first component of the regional package, a dedicated element of the ARC’s grants programme will operate as an on-going scheme to address issues of concern and direct benefit to regional and rural areas. It will form part of the current Strategic Partnerships with Industry—Research and Training (SPIRT) scheme, which assists institutions to link with industry in conducting research. Up to $10 million from this scheme (20 per cent of the current budget of $50 million) will be earmarked, on a competitive basis, to support research on issues of benefit to rural and regional communities. Amended SPIRT guidelines will be issued by the end of 1999 to enable applications in 2000 for funding allocations to be made in 2001.

Assessment would be peer-reviewed through the processes managed by the ARC. The initiative would be for access by institutions, individually or in collaboration with other institutions, to support research into rural and regional issues. Research projects funded under this scheme would need to be consistent with the Government’s regional priorities.

Institutions will be further supported by a $6 million fund to enable regional institutions in need of assistance to adapt to the new arrangements. The fund will ensure that no regional institution suffers a deterioration in its research funding, from its starting position, in the first three years of the new arrangements. The $6 million will be set aside to be available for a fund which could be drawn upon over the three-year transitional period 2000–2002. The fund will be available to the following universities:

  • Charles Sturt University

  • Southern Cross University

  • The University of New England

  • The University of Newcastle

  • University of Wollongong

  • Deakin University

  • La Trobe University

  • University of Ballarat

  • Central Queensland University

  • James Cook University

  • University of Southern Queensland

  • University of Tasmania

  • Northern Territory University

This assistance would be negotiated as required as part of the annual profiles process with institutions on their student places and funding levels. Regional institutions would receive a top up each year of the transition period as required, to the level of Government funding for research they would otherwise have received under the existing arrangements. The funds are intended to be used by institutions in strengthening their research focus. The funds would provide funding stability to regional institutions, and link research activity to the needs of regional communities.

4.5        Regional outcomes

It is anticipated that this package will assist universities to further enhance their research strengths and develop new strengths. It will enable institutions to integrate their existing strengths into a broader regional research strategy, as well as fostering collaboration between universities, industry and regional bodies.

Through these mechanisms, universities will complement and enhance their existing initiatives in supporting regional and rural Australia, develop new research strengths, integrate their existing research activities into a broader regional research strategy and increase collaboration with other institutions, industry and regional bodies.

Before the end of the three-year transitional funding period, the impact of the reforms on regional institutions and communities will be evaluated to assess how well the anticipated benefits have been realised. Further Government action will be influenced by the outcomes of the review. Consideration will be given to extending the availability of assistance beyond the initial three-year period if regional universities were to face difficulties if funding were to be discontinued.

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