National Horticultural Research Network - Horticulture Industry ...

National Horticultural Research Network
Implementing the future Framework September 2010
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6.1.2 Co-investment of Research Providers with HAL’s investment of industry levy
funds
Where there is high industry benefit and the investment priorities of the various levy-paying industries
align with those of the State agencies/CSIRO, there is opportunity for both parties to invest in a
project managed by HAL. This has advantages for both groups:
For HAL it means a co-investor is identified to leverage industry and matching
Commonwealth funds and allow the levy funds to cover a broader scope of work.
For the State and Commonwealth agencies HAL investment provides industry funds directed
towards their priorities and contributes to the retention of RD&E capabilities
In general, the outcomes of this work are determined by each industry through their Strategic
Plan which identifies investment priorities. As both industry levy funds and research provider
resources are used, the outcomes from the project must deliver an industry benefit and also
meet State or Commonwealth strategic investment priorities.
This funding arrangement enables each industry dollar invested to be leveraged up to four-fold by
Commonwealth and research provider co-investment for research projects.
6.1.3 Co-investment between an industry organisation and HAL and Research
Providers [Voluntary Contributions (VCs) - independent of levy funds]
Industry organisations such as packers, marketers and individual farms or groups of farms are able to
propose RD&E projects with voluntary funds to HAL for matched funding. These are generally in
line with HAL‟s stated priorities but may be independent of any particular industry strategic plan and
may have a regional focus. As private funds are matched with Commonwealth funds, a “private good”
output can be achieved consistent with an “industry good” outcome.
This form of investment is becoming more common as PISC agencies are required to rationalise their
core investment.
Increasingly, such projects will also be used to purchase specialist services from State agencies.
Where Government agency objectives and the objective of the external co-investor overlap, the
Government agency may co-invest in the project.
6.1.4 Co-investment with other Commonwealth (and State) agencies
A good example of this sort of investment is projects managed by the Australian Centre for
International Agricultural Research (ACIAR). In such projects, where investment priorities overlap,
both the research providers and ACIAR may invest in the project with benefits to both parties similar
to co-investment projects with HAL (see Section 5.1.2 above). In this case much of the output from
the project is delivered in an overseas country but most projects also include a locally-delivered
component, which ensures a direct benefit to Australian industries.
Similar opportunities exist with other Commonwealth agencies such as DAFF, AusIndustry and the
Department of Infrastructure, Transport, Regional Development and Local Government
(DOTAR). The same co-investment situations exist at the State level where particular State agencies
(particularly industry development and regional development) have overlapping investment priorities
with PISC agencies, making co-investment projects possible.
6.1.5 Improving the funding system
Developing a new model for RD&E delivery allows the opportunity to address some of the
weaknesses in the current system. The issues perceived by the NHRN that could be strengthened
going forward include:
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