ScienceAlert Homepage

There were science winners and losers in the recent
Federal budget.
Image courtesy of iStockphoto

It was a case of give and take for science, research and innovation in the Rudd Government’s first budget.

While Treasurer Wayne Swan pledged spending of more than $1 billion in Kim Carr’s portfolio of Innovation, Industry, Science and Research, he clawed back some $792 million through a range of “savings measures”.

The treasurer spent up big on postgraduate education, the development of environmentally friendly business processes and services, technology to green buildings and for fuel-efficient vehicles, but took the razor to a number of organisations and initiatives.

The cuts came in the form of “savings measures” for the Australian Nuclear Science and Technology Organisation (ANSTO) and CSIRO as well as the axing of a number of the previous government’s initiatives, including the Australian Industry Productivity Centres, the Research Quality Framework, the Renewable Energy Development Initiative and the National Nanotechnology Strategy.

Postgraduate education was the biggest winner, with two initiatives worth a combined total of $535 million to fund more postgraduate and fellowship places in Australian universities and research organisations.

The government committed to double the number of postgraduate scholarships available to higher degree research students by 2012 with its $209 million Scholarships for a Competitive Future – Postgraduate Scholarships initiative, which will provide living costs for students doing a research degree.

Mr Carr said the initiative would increase the total number of Australian Postgraduate Award holders from around 4800 to nearly 10,000 by 2012.

“We need to ensure that our best and brightest students are encouraged to go on to higher degrees if they have an interest in research,” Mr Carr said.

Mid-career researchers were also winners, with the treasurer delivering on an election commitment for $326 million over four years to create a Future Fellowships scheme.

The scheme will offer 1,000 Australian and international mid-career researchers four-year fellowships of up to $140,000 a year. Host organisations will receive up to an additional $50,000 a year to support related infrastructure and equipment.

“It is essential that we encourage, support and nurture future generations of exceptional Australian and international researchers and make available real opportunities to build a career here in Australia,” Mr Carr said.

The Australian Research Council will be responsible for developing the Future Fellowships scheme, with the first round of fellowships scheduled to commence in 2009.

The biggest single funding windfall in Mr Carr’s portfolio was $500 million to improve the greenhouse credentials of Australian-made vehicles.

The $500 million Green Car Innovation Fund, which will operate over five years from 2011, is designed to encourage local car and component manufacturers to develop and build more fuel-efficient vehicles. Under the initiative, industry will be asked to match the Government's contribution on at least a three-to-one dollar basis, generating at least $2 billion in investment.

“Consumers are lining up to drive greener, cleaner cars, and this initiative will help the local industry deliver new-generation technology, components and vehicles.” Mr Carr said.

In a further kicker for its green credentials the budget also committed $240 million over four years to three initiatives under the banner of Clean Business Australia (CBA).

The $75m Climate Ready grants program aims to encourage Australian businesses to develop and commercialise products, processes and services that save energy and water, reduce pollution and use waste products in innovative ways.

Grants will be provided on a dollar-for-dollar basis, matching company spending on research and development, proof-of-concept and pre-commercialisation activities to develop solutions to climate change challenges. Funding will commence for the program in July this year.

The $90 million Green Building Fund will offer assistance for energy-efficient retro-fitting of existing buildings and support for training initiatives to improve the skills of building operators.

The Fund will subsidise 50 per cent of the cost, through offset payments for energy efficiency aspects of retro-fitting and retro-commissioning existing commercial office buildings. Funding will be to a maximum of $200,000 per building, with priority given to buildings of more than 5000sq/m.

The third CBA initiative is the $75 million Re-tooling for Climate Change competitive grants program which will support Australian manufacturers to improve their production processes, reduce their energy use and cut carbon emissions.

Australian small and medium-sized manufacturers will be able to apply for grants from $10,000 to $500,000 to support green initiatives.

When it came to cuts, the biggest loser was the former Howard Government's Commercial Ready program, including the Renewable Energy Development Initiative, which was axed to provide savings of $547 million over four years.

Mr Carr said difficult decisions had been taken to secure Australia's long-term prosperity and that sensible and disciplined savings measures would assist the Government's goal of putting downward pressure on inflation and interest rates.