Coalition Senators' additional comments

1.1The Coalition has always recognised the importance of high-quality research and proudly supports cutting edge, innovative research which advances our nation, meets our nation’s priorities, and supports our economy and society.

1.2From science to manufacturing, from agriculture to information technology, Australia’s research sector is vital in ensuring that Australia remains globally competitive, and to that end the Australian Research Council (ARC) plays a very important role. However, Coalition Senators are firmly of the view that every dollar of taxpayers’ money spent on research should be in the national interest.

1.3Consistent with the principle of responsible government, a fundamental tenet of our parliamentary democracy, the Coalition has long held the position that government has a legitimate and important role in determining funding decisions which reflect its policy directions and priorities and is accountable to Australian taxpayers.

1.4The primary concern of Coalition Senators is that the Australian Research Council Amendment (Review Response) Bill 2023 (the bill) proposes to remove ministerial discretion or intervention in relation to grant funding decisions under the National Competitive Grants Program, not including specific programs such as the ARC Centres of Excellence, the Industrial Transformation Training Centres, and Industrial Transformation Research Hub. The only exception is that the Minister for Education (Minister) may intervene on security, defence, or international relations grounds.

1.5We are concerned that effectively outsourcing research decisions to a board which is unaccountable to the Parliament removes important democratic safeguards, is inconsistent with our system of responsible government, and does not serve the national interest. Transferring the decision-making responsibility for grant funding expenditure to a board, with no oversight by the Minister, also suggests that the board, not the Minister or the Parliament, is more informed about our nation’s priorities than the elected government.

1.6While the new board arrangements will include skills-based appointees, Aboriginal and Torres Strait Islander representation, and a representative from rural, regional, and remote Australia, it does not seek to include people with a broader skill set, such as those who are experts in governance or who can advocate for the best use of public funds.

1.7Additionally, while we acknowledge that key stakeholders in the research sector are generally supportive of the bill, organisations such as the Australian Technology Network of Universities, Regional Universities Network and Universities Australia have stated that the total number of board members is inadequate to represent the breadth and diversity of the research sector. Stakeholders also raised concerns that the proposed number of board members is likely to be insufficient to meet the level of expertise required to perform all the functions expected of it.[1]

1.8Coalition Senators share stakeholders’ concerns that the cost of the measures, approximately $1.5 million per annum, will be met from existing resourcing through reprioritisation within the ARC’s current departmental budget, reducing expenditure on actual research.[2]

1.9We note the Albanese Labor government committed to increase research expenditure to three per cent of GDP.[3] However, we see no signs the government will deliver on this commitment, with expenditure currently at only 1.79 per cent of GDP.[4] We also note with concern the government’s cut to university research expenditure of some $102 million as set out in the 2023-2024 Mid-Year Economic and Fiscal Outlook which brings into question the government’s commitment to the research sector more broadly.[5]

Senator Matt O'Sullivan

Deputy Chair

Liberal Senator for Western Australia

Senator Slade Brockman

Member

Liberal Senator for Western Australia

Footnotes

[1]Australian Technology Network of Universities, Submission 7, pp. 1–2; Regional Universities Network, Submission 18, p.1; and Universities Australia, Submission 9, p. 2.

[2]See, for example, Universities Australia, Submission 9, p. 1; University of Sydney, Submission 26, p.1; and Group of Eight, Submission 28, p. 4.

[3]See, Australian Labor Party, ALP National Platform: As adopted at the 2021 Special Platform Conference, p. 7; Australian Labor Party National Platform: As determined by the 49th National Conference 17 August–19 August 2023, p. 10.

[4]Universities Australia, Research Funding(accessed 5 February 2024).

[5]Group of Eight, Horse-trading between Research and Equity will undermine Australia’s future economic prosperity, Media Release, 14 December 2023 (accessed 5 February 2024).