Direction to: The Foundation for Research, Science and Technology (“the foundation”).
Pursuant to section 103 of the Crown Entities Act 2004,
I direct the foundation to give effect to Government policy as specified in this direction.
1. This direction comes into effect on 8 May 2006.
2. This direction does not replace or revoke any
previous directions made under the Crown Entities
Act 2004 or the Foundation for Research, Science
and Technology Act 1990 (“FRST Act”), including ministerial directions, directions to allocate funds in accordance with a ministerial scheme or notice of priorities that the foundation must adhere to. Nor does
it vary the foundation’s obligations under the FRST
Act.
Purpose of the Direction
3. This direction instructs the foundation to:
(a) give effect to Government policy to improve the effectiveness and stability of the Vote Research, Science and Technology funding environment; and
(b) evaluate the implementation of this direction with the Ministry of Research, Science and Technology.
Policy
4. This direction covers aspects of the Government’s policy for a more effective and stable funding environment for science (CBC Min (06) 7/6 refers).
5. The Government’s policy is:
(a) there will be progressive implementation of negotiated investment for eligible programmes within Vote Research, Science and Technology;
(b) that to be considered for negotiated re-investment,
a research programme will have to be of sufficient size and have received funding for at least six years, and from two successive bidding rounds. Eligible programmes will then need to satisfy quality and relevance criteria that include, but are not limited to, a combination of the following:
(i) scientific and technical quality, including track-record of delivering benefit to New Zealand; and future potential to deliver benefit to
New Zealand;
(ii) long-term comparative advantage in an area
of direct benefit to New Zealand, or unique significance to New Zealand;
(iii) alignment with relevant end-user and Government strategies;
(iv) evidence of end-user support and industry co funding; and
(v) a track record of the research organisations’ accountability for public money.
(c) that for the first two years, negotiated investment will only be applied in the following output expenses, with the total value of negotiated investment not to exceed 30% of each output expense:
New economy research fund, research for industry, and environmental research.
This level is in addition to existing longer-term research consortia and outcome-based investments in these output expenses;
(d) that research, science and technology funding and investment agents will be the sole decision-makers regarding whether an investment is made via a contestable process or negotiated process;
(e) there will be progressive implementation of technical review for all research programmes
within Vote Research, Science and Technology
to improve performance and develop a strong evidence base to inform future investment decisions.
Direction
6. I direct the foundation to give effect to this policy by progressively implementing the above policy measures in the funding and allocation process for the 2007/2008 financial year onwards.
7. I direct that, when allocating funds for the 2007/2008 financial year onwards, the foundation consider, in accordance with the FRST Act, using a mix of processes that include but are not limited to negotiated and contestable allocation processes. This direction recognises there may be circumstances in which better outcomes can be achieved through the negotiation of an agreement between the foundation and one or more research organisations, than through a contestable allocation process.
8. When determining the type of process to be used in allocating funds, I direct that the foundation pay particular attention to Government’s desire that the allocation process achieve:
(a) more consistent delivery of longer-term research, science and technology outcomes to the private and public sector that benefit New Zealand;
(b) reduced transaction costs and complexity for research organisations;
(c) enduring linkages and collaboration between research organisations and the end-users of the research; and
(d) greater clarity for research organisations to plan and develop strategies for the longer-term.
9. I direct that the foundation monitors the implementation of this direction and following the investment processes for allocating funds for the 2008/2009 financial year, the foundation collaborate in an independent evaluation of the implementation, impact and alignment of this direction with the policy intent. This evaluation will be
a joint undertaking led by the Ministry of Research, Science and Technology.
Dated this 4th day of May 2006.
STEVE MAHAREY, Minister of Research, Science and Technology.