Productivity Commission review of the Research and Development Corporations

The Productivity Commission’s inquiry examined the effectiveness of the RDC model, including the appropriateness of current funding levels and arrangements for improving productivity through R&D, and whether there are any impediments to effective and efficient functioning of the model.

On 15 June 2011, the Australian Government released the final report of the Productivity Commission inquiry into the rural research and development corporations (RDCs), as well as the preliminary government response to the Productivity Commission’s report. The government also released the Rural Research and Development (R&D) Council’s National Strategic Rural R&D Investment Plan

Minister Ludwig announced (Government support for rural R&D set to continue) that the government will not adopt the Productivity Commission’s recommendation to reduce the cap on government matching contributions to the RDCs from 0.5 per cent to 0.25 per cent of an industry’s gross value of production. He also noted that there are opportunities for improvement in the efficiency and effectiveness of the RDC model.

Minister Ludwig also made a statement in Parliament on Rural R&D.

The department hosted a series of ten targeted consultation meetings across Australia with over 100 stakeholders in November 2011 to inform development of the government’s final response to the Productivity Commission’s inquiry into rural RDCs and the Rural Research and Development Council’s investment plan.

Senator the Hon. Joe Ludwig, Minister for Agriculture, Fisheries and Forestry released a Rural Research and Development Policy Statement on 23 July 2012, which incorporated the responses to the two reports.