Chapter 5Committee view

CSIRO funding is an investment

5.1The committee acknowledges that for decades CSIRO has served as a cornerstone of Australia's national public research, delivering innovations like Wi-Fi and polymer banknotes that have fundamentally shaped our nation’s prosperity.

5.2Over decades, Government investment in CSIRO has secured Australia’s sovereign capability and place in the global economy.

5.3The Albanese Government must acknowledge that investment in CSIRO is an investment in Australia’s future prosperity, not simply a cost to the budget.

Commitment to open dialogue with staff

5.4The committee notes concerns from CSIRO employees that consultation in relation to job cuts has been inadequate and has seemingly not delved into the nature of important research.

5.5Further, the committee notes concerns from CSIRO employees about the scale and pace of historical and proposed job cuts within the CSIRO.

5.6The committee recommends that CSIRO continues to engage with CSIRO staff who have provided evidence that they feel there is a lack of consultation and dialogue around job losses or when programs are to be discontinued or redirected.

Further funding cuts and job losses

5.7The committee acknowledges the impact, to both the organisation and the staff of CSIRO, due to funding cuts and job losses due to the decisions of the Albanese Government.

5.8The committee recommends that the Albanese Government clarify whether there will be any further funding cuts or jobs losses at CSIRO.

Securing sovereign capability

5.9The CSIRO has legislated functions including, assisting Australian industry and furthering the interests of the Australian community.

5.10The committee understands the importance of CSIRO‘s research to protecting Australia’s way of life, including by providing practical industry assistance in critical areas like biosecurity and minerals.

5.11The committee also acknowledges the importance of ensuring a pipeline of young Australian researchers, to safeguard our sovereign capability and ensure our brightest minds solve critical, national challenges. Similarly the retention of experienced and knowledgeable mid-career and long-term scientists is critical to Australia’s sovereign capability.

5.12The committee recommends that the Albanese Government publicly advise how Australia’s sovereign, public research capability will be protected in the face of funding cuts and jobs losses at CSIRO.

Future funding

5.13The committee notes concerns raised in submissions regarding the shrinkage of CSIRO’s budget in real dollars, as a result of the Albanese Government’s failure to control inflation, and the resulting challenges faced by CSIRO to sustain strong research capabilities.

5.14The committee acknowledges that when a government loses control of the economic basics, including the budget, inflation and productivity, the impacts are felt by organisations, like the CSIRO, who pay the price through higher costs.

5.15The committee recommends that the Government continues to engage with CSIRO regarding financial sustainability of this important public institution and consider the impacts that reduced public and private funding have on Australian research capability.

Strategic direction of CSIRO

5.16CSIRO holds a critical role in providing sovereign scientific capability for Australia and focusing on public good science. As such, its strategic direction needs to consider the long term scientific capability needs in Australia that help restore our standard of living and protect our way of life.

5.17The committee acknowledges that sustained national research capability is fundamental to innovation, productivity and Australia’s ability to respond to complex economic and strategic challenges. Without a healthy and active research and development sector, these capabilities cannot be effectively realised.

5.18The committee recommends that the Government continues to engage with CSIRO about its strategic direction in light of the final review report for Ambitious Australia: Strategic Examination of Research and Development (SERD Review report).

Implementation of the SERD review report

5.19The committee also acknowledges the ongoing challenges to CSIRO with reduced funding from both government and private R&D investment.

5.20As a nation, R&D investment has fallen to 1.68 per cent of GDP – well below the OECD average, and since 2008, business investment in R&D has dropped by 35 per cent.

5.21The committee acknowledges that whilst the final SERD Review report, Ambitious Australia: Strategic Examination of Research and Development final report, was released after the committee had held its public hearing for the inquiry and as such there was no commentary from witnesses or submissions about its content, the report provides recommendations which impact CSIRO, including private R&D investment, government funding programs and the strategic direction of CSIRO.

5.22The Government must ensure that it works collaboratively with CSIRO on the SERD Review report recommendations.

5.23The committee recommends that the Government address the recommendations within the Strategic Examination of Research and Development (SERD) Review report, particularly recommendations which will have either a direct or indirect impact on CSIRO, and publicly advise whether the Government will implement the SERD recommendations.

Senator Kerrynne Liddle

Chair

Liberal Senator for South Australia