• This is an abridged version of an article Bob Edlin wrote today for the Point of Order blog –

A great whoop of approval came from the Taxpayers’ Union in response to the Government’s plans to restructure the country’s science sector – but particularly the decision to disband Callaghan Innovation .

Union spokesman James Ross, maintaining that “corporate welfare has no place in New Zealand”, declared:

“Callaghan Innovation has shown itself to be a toxic organisation, with a culture that leads to waste on a wallet-shattering scale. The Taxpayers’ Union has worked for years exposing the agency’s waste, and this is a major win for Kiwi taxpayers.”

But the reforms announced by the Government today extend far beyond Callaghan Innovation.

In her last day in the portfolio, Science, Innovation and Technology Minister Judith Collins said the reforms will:

• Transform the current seven Crown Research Institutes into three Public Research Organisations (PROs) focusing on bio-economy, earth sciences, and health and forensic sciences;
• establish an advanced technology PRO to deliver research, capability and commercial outreach around technologies such as artificial intelligence, quantum [advanced computing] and synthetic biology;
• establish a Prime Minister’s Science, Innovation and Technology Advisory Council to provide strategic direction and oversight of the system, advise on priorities and identify the biggest opportunities to leverage science, innovation and technology for economic growth;
• establish a new agency, Invest New Zealand, as the Government’s one-stop-shop for foreign direct investment, to help the Government reach its goal of doubling exports by 2034;
• develop a national policy for managing Intellectual Property (IP) for science, innovation and technology-funded research; and
• disestablish Callaghan Innovation and move its most important functions to other parts of the system.

The Public Service Association was as dispirited in its reaction to the news as the Taxpayers’ Union had been welcoming (at least of the Callaghan Innovation’s disestablishment).

Fleur Fitzsimons, Acting National Secretary for the PSA, said it was hard to have confidence in the Government’s latest science strategy when it comes with no promise of new funding or a commitment to retaining the current workforce.

The long overdue science reform strategy promises another huge restructure on top of the restructure endured by science agencies to date, creating more uncertainty and worry for thousands of science workers, she said.

“Our heart goes out to staff at Callaghan Innovation who have already endured a long restructure and now face an uncertain future with the agency to be scrapped entirely. Their work is valued and important no matter what the Government says.”

Ms Fitzsimons found it ironic that  – just over a decade ago – it was a National-led government that launched Callaghan Innovation, with the then PM John Key praising the late Sir Paul Callaghan for his belief that ‘science could make New Zealand a better place’.

Last year, the Government had rushed to axe the jobs of around 500 scientists and researchers across various agencies, many of whom had been forced to uproot their lives and go offshore, she said.

“Now it wants to deliver this latest reform quickly – it’s just a recipe for more chaos and uncertainty.

“The Government puts much store on the role of science in driving economic growth and productivity, but is promising no new funding and there is no committment to retain our existing scientists, lab workers and researchers.”

But Judith Collins said the reforms are intended to get more out of the money already invested.

The reforms will maximise the value of the $1.2 billion in government funding that goes into the science sector each year, creating a more dynamic science, innovation and technology system that can respond to priorities and keep pace with technological advances, she said.

“Getting the system settings right is the best way to boost long-term economic performance and ensure our scientists can pursue meaningful careers in New Zealand.”

The four new PROs will be designed to maximise the long-term NZ Inc benefits. They will be adaptable and responsive to government priorities, accountable through appropriate cost recovery, and set up to be well-coordinated and to avoid unnecessary duplication.

The PROs will also look for partnerships with private sector investors in research capability, facilities and knowledge production.

Then she discussed the disestablishment of Callaghan Innovation and the shifting of its most important functions to other entities.

“Callaghan has simply been spread too thinly across too many functions, leading to poor financial performance and an over-reliance on Crown funding,” Ms Collins said.

The new Prime Minister’s Science Innovation and Technology Advisory Council is charged with setting national priorities for the system, including across the four PROs.

A key role of the Council will be to make sure the taxpayer funding that goes to the sector is spent in the best way possible to grow the economy, because innovation and technology are the future.

Invest New Zealand will be the Government’s one-stop-shop for foreign direct investment, excluding public infrastructure, and will be an Autonomous Crown Entity.

It will be focussed on attracting greater investment into truly innovative activities in existing sectors and those with high potential to raise productivity and drive economic growth, as well as greater research and development investment and innovative activity in New Zealand by multi-national companies.

Invest NZ will also be tasked with attracting more skilled professionals to New Zealand, to help foster innovation, raise domestic capabilities and improve international connections.

Judith Collins (to be succeeded in the portfolio from tomorrow by Dr Shane Reti) said:

“The Government wants to reward and incentivise people in the industry and will therefore develop a national policy for managing Intellectual Property (IP) for science, innovation and technology-funded research.

“This will be based on the model used by Canada’s Waterloo University, which vests ownership of IP with the researchers who create it.

“We will also be considering how this policy will apply to the new PROs, with the intention being that researchers receive a share of the financial rewards from commercialising intellectual property.”

This work, along with the government’s move to overturn what has effectively been a 30-year ban on gene technology, would unlock enormous opportunities for our science sector and New Zealanders, Ms Collins said.

“The changes we have announced today are extensive but they will ensure a science system that generates maximum value for the economy and, therefore, for New Zealanders.”

Her announcement follows consideration of the first report delivered by the Science System Advisory Group.

Sources:  Minister of Science, Innovation and Technology, PSA and New Zealand Taxpayers’ Union.