apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Crown Research Institute TaskforceDuring 2010/11, CRIs faced a year of change following the release of the CRITaskforce Report (the Report) in February 2010. The Government endorsedthe findings of the Taskforce, initiating significant reforms for CRIs and thewider science and innovation sector. CRIs also faced uncertainty owing to theeconomic downturn impacting most of their major customers.Over the year, 19 of the 27 Taskforce recommendations were implemented.The Government agreed to a Statement of Core Purpose for each CRIoutlining the purpose, outcome and areas of focus for each institution. TheGovernment also agreed to devolve $215 million to the CRI Boards from VoteResearch Science and Technology (previously administered by the Foundationfor Research, Science and Technology). All CRIs produced a new SCI witha sector outcome focus developing a range of non-financial and financialindicators to measure performance. These were developed in partnership withend-users.Science and innovation performanceCRIs are now focusing on measuring and reporting the impact of science andinnovation with their sectors. This gives insight into the value of the basicand applied science that CRIs are delivering. This is a trend that we expect tocontinue. Science quality is being maintained and we are seeing an increasein the number of peer-reviewed articles. There is a slight downward trendin the technology and knowledge transfer indicators reported. However, webelieve this is mainly owing to the way they are being reported rather than anyreduction in technology transfer as positive feedback has been received fromend-users.Financial performanceIt was a difficult year financially for most CRIs as revenues reduced from$687 million in 2009/10 to $681 million in 2010/11 (4.6% below budgetedrevenue of $715 million) as a result of the continued economic downturn.CRIs responded by reducing costs, resulting in NPAT of $20 million, $5 millionbelow budget. This equates to an adjusted return on equity in 2010/11 of2.9%. CRIs have extensive capital investments planned over the next two tothree years. In the main this is fit-for-purpose technology and infrastructure toassist their sectors. This is to be paid for by using existing net cash balances,which have accumulated to $36 million in 2010/11.CRIs have had a strong focus on value for money and this is best shown bythe average revenue per employee increasing by $20,000 from $151,000 in2007/08, to $171,000 in 2010/11.Core purposeAgResearch Ltd – To enhance thevalue, productivity and profitabilityof New Zealand’s pastoral, agri-foodand agri-technology sector valuechains.Institute of Environmental Scienceand Research Ltd – To deliverenhanced scientific and researchservices to the public health, foodsafety, security and justice systemsand the environmental sector.Institute of Geological and NuclearSciences Ltd – To provide researchon geological-based energy andminerals industries; industrial andenvironmental applications of nuclearscience; and increased resilience tonatural hazards.Industrial Research Ltd – To increasethe contribution of the industrialmanufacturing and associatedsectors by empowering industry todrive innovation in manufacturing andservices.Landcare Research New ZealandLtd – To drive innovation inmanagement of terrestrial biodiversityand land resources in order toboth protect and enhance theterrestrial environment and growNew Zealand’s economy.National Institute of Water andAtmospheric Research Ltd – Toenhance the economic valueand sustainable management ofNew Zealand’s aquatic resourcesand environments, to provideunderstanding of climate and theatmosphere and increase resilienceto weather and climate hazards.The New Zealand Institute forPlant and Food Research Ltd – Toenhance the value and productivity ofNew Zealand’s horticultural, arable,seafood and food and beverageindustries.New Zealand Forest Research InstituteLtd – To drive innovation and growthfrom New Zealand’s forestry, woodproduct and wood-derived materialsand other biomaterial sectors.page | 105