Rural Industries
Research & Development Corporation


1994-95 RIRDC ANNUAL REPORT
DIRECTORS' OVERVIEW

Your Directors are very pleased to report that 1994-95 has been another very good year for RIRDC during which the majority of the objectives to which we agreed in May 1994 have been substantially achieved. Moreover we are pleased to report that the objectives and goals to which we agreed in RIRDC's Five Year R&D Plan (1991-96) were also substantially achieved and a new Five Year Plan for the period 1995-2000 agreed. Some of the highlights for the year are listed in the previous section.

External Reviews

The Corporation has responded to three separate external reviews of rural research, all of which have included review of some specific aspects of RIRDC operations, during 1994-95.

1.Budget (ERC) Task Force Review
In May 1994 the Minister released the Report of an Interdepartmental Task Force which reviewed rural research in the Primary Industries and Energy portfolio on behalf of the Expenditure Review Committee of Cabinet and asked R&D Corporations to address their recommendations. In response RIRDC has:

  • reinforced already well established practices in working closely with industry stakeholders to develop industry plans and in particular the R&D components of those plans;

  • developed appropriate performance indicators for the Corporation's R&D investment and management and administrative performance and to report on the Government's objectives and public good research;

  • reviewed the Corporation's management procedures and assured itself that they embody stakeholder consultation, strategic planning and evaluation procedures appropriate to RIRDC's operations;

  • facilitated the incorporation of the Chicken Meat, Egg Industry and Honeybee Council programs within RIRDC and the formation of a separate Corporation to manage the tobacco program. However, Directors remain concerned about their continuing responsibilities for the operations of the Dried Fruits R&D Council program, especially given the provisions of the proposed Commonwealth Companies and Authorities legislation currently before the Parliament;

  • facilitated a joint R&D Corporation approach to the generic R&D issues of agribusiness and trade, farmer occupational health and safety, climate variability and change risk management, plant pest and disease control, and agroforestry; and

  • worked with DPIE staff to identify common program interests and to develop more collaborative interprogram arrangements.

    2.ANAO Performance Audit
    In June 1994 the Auditor General reported to the Parliament on a performance audit of R&D in the Primary Industries and Energy portfolio, including the operations of R&D Corporations. The Joint (Parliamentary) Committee on Public Accounts subsequently sought advice on RIRDC's actions in followup to the report. In summary, the Corporation responded that:

  • investment analysis techniques, proposed by the Auditor General, were used already by the Corporation to guide R&D investment decisions;

  • RIRDC's R&D program plans were reviewed on a rolling three-four year cycle (or more frequent if needed) and in consultation with the Corporation's industry and government stakeholders;

  • the outputs of all R&D projects were assessed by Corporation staff and external reviewers, as appropriate, and that some were selected for more detailed cost - benefit analysis;

  • R&D Corporation Chairpersons, Executive Directors and support staff met both formally and informally during each year to exchange information on best practices and to coordinate joint activities;

  • milestone reporting of progress on research projects had been an integral part of RIRDC's requirements and project monitoring practices since 1991; and that

  • various project risks were considered before project initiation and in monitoring of projects. The Corporation had also undertaken a comprehensive review of all the risks it managed as a corporate entity and that these were being addressed in management guidelines and practice.

    3.Industry Commission Inquiry into Research and Development
    In December 1994 the Industry Commission released a draft report on its inquiry into research and development in Australia. RIRDC responded to the draft report both in collaboration with counterpart R&D Corporations and through a separate response which argued for:

  • recognition of the significance of spillovers to the community and pecuniary benefits accruing to associated industries (eg in food manufacturing and retailing), through RIRDC sponsored research;

  • non-separation of public and private good research as most research had various components of both;

  • recognition of the R&D needs of small and emerging industries and the need to lift the $ for $ matching threshold for these industries to at least the first $200,000 of industry levies;

  • extension of the (HRDC) voluntary/regional levy $ for $ matching provisions to RIRDC; and

  • recognition of the RIRDC and LWRRDC role in coordination of research on generic industry issues.

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    Last updated: 9 August 1996
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