 | 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.

Last updated: 9 August 1996
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