Productivity Commission review of the Research and Development Corporations

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 Productivity Commission’s report is available on its website. 

•  Preliminary government response

The government also released the Rural Research and Development (R&D) Council’s National Strategic Rural R&D Investment Plan.

• National Strategic Rural R&D Investment Plan  PDF [1.3mb] 

Media Release

• Senator the Hon. Joe Ludwig, Minister for Agriculture, Fisheries and Forestry, announced the release of these documents. 

Statement 

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

The government will now finalise its response to the Productivity Commission’s report and assess whether any changes are required to broader rural R&D policy. Stakeholders will be provided with a further opportunity to engage with the government while this occurs.  

Productivity Commission review

The Productivity Commission’s inquiry included an examination of 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.

Minister Ludwig announced 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.

Minister Ludwig also noted that there are opportunities for improvement in the efficiency and effectiveness of the RDC model.

National Strategic Rural R&D Investment Plan

The National Strategic Rural R&D Investment Plan outlines a rationale for balancing Australian Government investment in rural R&D and identifies major investment themes.

The council’s vision, articulated in the investment plan, is for rural R&D to play an important role in:

• enabling Australia to play its part in the global effort to increase rural sector output
• developing a range of technologies and knowledge to contribute to healthy Australian lifestyles and global food security
• enabling rural industries to produce a wider product range as well as providing ecosystem services.

Further information on the Rural R&D Council is available on the website.