The Prime Minister's Science, Engineering and Innovation Council met for the second time on Friday 4 December 1998, with the Prime Minister chairing. Among the issues discussed were:
- The nexus between science and its applications
- The Wills Health and Medical Research Strategic Review
- Dryland Salinity
- Australian Greenhouse Science
- Australian involvement in international science facilities
In leading the working group's presentation, Mr MA (Tim) Besley, President of the Australian Academy of Technological Sciences and Engineering, noted three areas needing attention if Australia is to be successful in innovation and entrepreneurship. These are:
- Education in science and technology, and entrepreneurial skills;
- Government programs to encourage innovation; and
- Venture-seed capital for emerging growth businesses.
The working group recognised problems with a shortage of adequately trained science and technology teachers, and a lack of courses specifically aimed at training scientists and technologists in entrepreneurial skills. It made five recommendations on providing teachers and students with adequate training and resources, encouraging best practice teaching techniques and promoting successful science and technology entrepreneurship to young people.
In addressing the area of education in science, technology and entrepreneurial skills, the working group recognised that education was only the first step in ensuring that Australian scientists and entrepreneurs would be able to commercialise their scientific and technological breakthroughs successfully. Without further encouragement and on-the-job education, Australians could not capture the full benefits offered by improved education.
The report recognised that even after educating and encouraging entrepreneurs it would still be very difficult for our entrepreneurs to be successful in an environment which is internationally uncompetitive. The innovation cycle of any country is only as strong as its weakest link, and the working group made recommendations aimed at improving the flow of venture capital to entrepreneurs, including addressing the issue of capital gains tax.
In discussion members raised the problem of inadequate staff development for teachers and the important barriers which some organisations face in transferring technology to industry in a commercial manner.
Mr Peter Wills AM, Chairman of the Review, presented the Review's major findings and recommendations. He emphasised Australia's significant international record and reputation in health and medical research. He spoke of the role of research in helping to manage the problem of rising costs in the Australian health care system. It was vital for Australia to leverage its medical research, if it is to benefit from the biotechnology revolution, generate wealth, and create knowledge-based employment.
The Review's recommendations are based on reinforcing a 'virtuous cycle' of interactions among government, industry and research. Recommendations addressing research focus on reforming the funding of research, including better mobility of funds and resources, and improving the management of research as an enterprise, such as in negotiating commercialisation arrangements with industry. The need to attract the best and the brightest to research also requires attention, and would involve wider and deeper career paths, and internationally-competitive remuneration. Priority-driven research at the strategic and development phases is also a vital component of an effective research system.
Industry's roles include increased investment in R&D, and action to preserve and benefit from intellectual capital. Long-term venture capital is needed, and the government needs to address barriers such as capital gains tax and the taxation treatment of certain company structures which inhibit the availability of patient capital. International pharmaceutical companies are looking to outsource some of their R&D, and encouragement for them to invest in Australia could have substantial benefits to our medical research.
The roles for government are to boost the responsibilities and structure of the National Health and Medical Research Council (NHMRC), and to raise investment in fundamental and priority-driven research. Australia trails other countries in medical research funding as a proportion of GDP, and there is scope to double the NHMRC budget over five years; this could create 10,000 to 15,000 new knowledge-based jobs. An Australian-State Governments national program of priority-driven research, with a target of funding at 1% of national health expenditure, should be considered.
Members discussed the causes of growth in health expenditure, and sources of research funding. The point was made that the conditions which may be holding back investment and growth in small, technology-based medical and biotechnology research enterprises also apply in other high-technology sectors.
Professor Peter Cullen, President of the Federation of Australian Scientific and Technological Societies, opened the presentation by focussing on the potential of dryland salinity to cause substantial damage across agriculture, the environment, infrastructure, and urban areas. He noted, though, that if tackled seriously and soon, it could be managed at a cost significantly less than that of the damage it could cause in the long run.
Mr Kevin Goss, Deputy Chief Executive Officer, Murray-Darling Basin Commission, spoke on the causes, impacts, extent and spread of dryland salinity. He explained that clearing of deep-rooted vegetation from land changed water balances and the levels of water tables, allowing dryland salinity to spread. Once this occurred, salinity then affected agricultural land and production; water quality; the environment and biodiversity; and infrastructure and urban areas.
Mr Goss outlined the methods and practices available to combat, or live with salinity, including planting of perennial deep-rooted pastures; farm forestry; changes in social policy necessary to encourage land use changes; and novel land uses to allow 'living with salt' in those areas already affected.
Professor Cullen outlined the report's recommendations noting the need for an integrated, comprehensive approach incorporating the following:
- Explicit Australian Government acknowledgment of the issue.
- Identify and resource priority areas for research.
- Involve land users and rural communities, building on the successes of Landcare and the Natural Heritage Trust.
- Stimulate innovation, and overcome the current barriers to innovation including communications problems and lack of resources to bring about land use changes.
- Use a variety of market, regulatory and incentive mechanisms to encourage changes in land uses and behaviour.
- Encourage initiatives that bring together science, information, land users and communities, on a larger scale than had been attempted hitherto, to take an integrated, catchment-based approach to the issue.
In discussion members focussed on the following issues:
- A statement to acknowledge the seriousness of dryland salinity as an issue, possibly in the context of well-informed natural resources management practices, should be given serious consideration.
- The idea of an integrated catchment-scale initiative is valuable, and received strong support from a number of Council members.
- Existing initiatives which assist in addressing dryland salinity, such as the encouragement of alternative crops and new land uses, the activities of state governments such as the Western Australia Salinity Action Plan, the work of Landcare, and the survey and other work sponsored by the Natural Heritage Trust, all need to be acknowledged.
- However, despite all this activity, dryland salinity is still a spreading problem, and there is scope for further action and investment.
- An integrated approach to regulatory and market-based instruments are important and necessary parts of addressing dryland salinity.
- Land clearing is a major issue, and is still continuing extensively in some areas; clearing of land in the headwaters of the Murray-Darling Basin now can lead to problems with Adelaide's drinking water in, say 50 years; control over, or regulation of clearing should be considered, but this needs to be done recognising the interests of farming groups, and the freehold status of their land.
Members agreed the problem was an insidious one, with causes and effects often separated in time and space, making pure market instruments ineffective. The use of tree planting to gain greenhouse carbon credits should be done in such a way as to contribute substantially to combating dryland salinity.
Dr Graeme Pearman, Chief, CSIRO Atmospheric Science Research made a presentation on Australia's contribution to greenhouse science. He indicated that growth in atmospheric carbon dioxide concentrations, and in mean global temperature led to a discernible human influence on climate change. While further changes could be expected there were considerable uncertainties. What was the change at a regional scale? What are the types and costs of impacts? How do we ascertain the balance between costs and benefits of impacts? What activities should be undertaken to mitigate and to live with the effects of climate change?
Australian capacity to model climate change and the effects of increased greenhouse gas concentrations is among the best in the world, and had contributed to global models which predict an overall rise of 3 degrees in mean temperature to the year 2100. There are opportunities for research and innovation in a number of areas which can contribute to reducing greenhouse gases, including automobile engine performance; land use changes; renewable energy technologies; recycling; improved energy use efficiency; and clean combustion. Australian research is also helping Australia to meet domestic and international obligations and take an informed part in negotiations, prepare to adapt to climate change, and identify and capitalise on opportunities to benefit from climate-friendly technology.
Discussion pointed out a number of such opportunities for Australia. For example, CSIRO has two developments: a hybrid petrol-electric car, with twice the efficiency of conventional vehicles, is being developed as are treatments for natural gas to remove constituents which most contribute to producing greenhouse gases. These innovations could be retained in Australia for national benefit, provided the sorts of constraints to industrial innovation mentioned in other agenda items were addressed.
Professor Vicki Sara, Chair of the Australian Research Council, led the presentation of the Megascience Working Group. She noted the opportunities and challenges open to Australia's scientific community as it sought to develop markets from the transfer of its knowledge and skills. Professor Sara indicated the opportunities flowing from Australia's membership of the OECD Megascience Forum to join with other member countries in investing in two large facilities beyond the reach of individual jurisdictions: the Square Kilometre Array and the Global Biodiversity Information Facility.
The first supporting presentation was given by Professor Ekers, Head, Australia Telescope National Facility. He spoke in support of an Australian commitment to the Square Kilometre Array (SKA) - an array of antennas that would allow radio astronomers to gather information from the so-called 'Dark Ages' between the origin of the universe and the birth of the first stars. He noted that such an investment would provide the opportunity, through increased engineering capabilities, to repeat many of the industry benefits secured when Australia built the Australia Telescope National Facility in western NSW in 1988. As a leading edge customer and funder Australia would gain industry advantage from any expenditure. This would be increased if Australia were host of the facility.
Dr Ebbe Nielsen, Head of the National Insect Collection offered the second supporting presentation. He spoke of the Global Biodiversity Information Facility (GBIF), an international mechanism to bring together, and provide access to, the world's biodiversity databases. Australia's access to, or hosting of, GBIF would foster a burgeoning biological informatics sector based on Australia's world excellence in biodiversity research.
In discussion, members noted that each project would offer opportunities for Australia to showcase its unique capabilities and to make use of the significant spillovers to develop business opportunities. As a member of the international science community, Australian investment in the two nominated facilities would provide access for our scientists to other activities where our level of commitment was not sufficient to consider a seat on an operating board.