NOTICE UNDER SUBSECTION 19A(2) AND 20(3) OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986

Directions to Innovation Australia under sections 18A, 19 and 20(1) of the Industry Research and Development Act 1986

I, CHRISTOPHER PYNE, Minister for Industry, Innovation and Science, direct pursuant to sections 18A, 19 and 20(1) of the Industry Research and Development Act 1986:

Part 1: Preliminary

Commencement

1. These directions commence on 26January 2016.

Object of these Directions

2.              The object of these directions is to give direction to Innovation Australia to:

(a)           provide Technical Assessments to the Minister in relation to the Cooperative Research Centres Programme under section 18A of the Act, including, but not limited to, the merit ranking of Compliant Applications under the Cooperative Research Centres Programme; and

(b)           undertake the additional function under section 19 of the Act to provide strategic oversight of the Cooperative Research Centres Programme, including advice to the Minister in relation to the delivery and performance of the Cooperative Research Centres Programme; and

(c)           the policies and practices to be followed by Innovation Australia in the performance of the activities set out in paragraphs (a)and (b) in accordance with subsection 20(1) of the Act.

Introduction

3.              The Cooperative Research Centres Programme will improve the competitiveness, productivity and sustainability of Australian industries, especially where Australia has a competitive strength, and in line with government priorities.

Innovation Australia will assess and prioritise applications against the selection criteria and provide Technical Assessments to the Minister. Innovation Australia will conduct Technical Assessments in relation to Compliant Applications for Grant Funds. The application process will be competitive, based on selection criteria and other information as identified under these directions and the Programme Guidelines.

The Minister will consider the advice of Innovation Australia and select applicants to whom grants will be offered under the Cooperative Research Centres Programme. Participants will be monitored closely and on-going support under the Cooperative Research Centres Programme will depend on successfully achieving agreed performance criteria and compliance with the Funding Agreement.

Additional Function

4.              As set out in these directions, Innovation Australia will be responsible for the strategic oversight of the Cooperative Research Centres Programme.

5.              The Department will be responsible for administering the Cooperative Research Centres Programme and assisting Innovation Australia with its strategic oversight of the Cooperative Research Centres Programme.

Innovation Australia to have regard to policy objectives

6.              Innovation Australia must have regard to the following policy objectives in giving effect to these directions:

The policy objectives of the Cooperative Research Centres Programme are to:

• improve the competitiveness, productivity and sustainability of Australian industry, especially where Australia has a competitive strength, and in line with government priorities;
• foster high quality research to solve industry problems through industry-led and outcome-focused collaborative research partnerships between industry entities and research organisations; and
• encourage and facilitate Small and Medium Enterprise (SME) participation in collaborative research.

Part 2: Technical Assessment of applications

Procedure

7.              Innovation Australia will assess the merit of each Compliant Application referred by the Minister and provide its recommendation to the Minister.

8.              Innovation Australia must consider Compliant Applications as soon as practicable after those applications have been provided to Innovation Australia.

9.              In considering Compliant Applications, Innovation Australia must take into account advice provided by the Department on policy issues that are relevant to, or impact on, any of the selection criteria.

10.          Innovation Australia may request additional information from an applicant that is relevant to the Compliant Application after its lodgement.

11.          In providing the Minister with an assessment for a Compliant Application, Innovation Australia may include advice as to whether the relative merits of an application would warrant that any approval be subject to particular conditions.

Assessment against Selection criteria

12.          Innovation Australia may decide to decline to complete an assessment in respect of a particular application if it is not satisfied:

(a)           with the level of merit of an Compliant Application in relation to one or more of the selection criteria; or

(b)           that the activities described in the compliant application are Eligible Activities; or

(c)           without limiting the generality of subclause (a) above, with the overall level of merit of an Compliant Application having regard to all applicable selection criteria.

13.          Innovation Australia must base its assessment of each Compliant Application on the selection criteria requirements specified in the Programme Guidelines.

14.          The Minister may request that Innovation Australia provide advice on indicators of merit for some or all of the selection criteria.

Part 3: Technical Assessment of proposals for variation to a Funding Agreement

15.          If a Recipient has submitted a proposal to the Department for approval of changes to an agreed Funding Agreement, including the addition of new activities, the discontinuance of activities, the substitution of new activities in the place of discontinued activities, a variation to milestones, a variation to funding, or a variation to the Funding Agreement’s timeframe, the Minister may request that Innovation Australia assess the proposal.

16.          If Innovation Australia receives a request under clause 15 it must assess the proposal as soon as is practicable and provide the assessment to the Minister.

17.          In undertaking an assessment of a proposal to change a Funding Agreement, Innovation Australia will consider:

(a)           the extent to which the changed Funding Agreement meets the selection criteria;

(b)           the impact on the outcomes of the Funding Agreement; and

(c)           whether the change to the Funding Agreement would:

(i)             be consistent with the policy objectives set out in the Programme Guidelines; and

(ii)            otherwise be appropriate in all the circumstances.

Part 4: Other advice related to the administration of the Cooperative Research Centres Programme

18.          The Minister may request Innovation Australia to provide assessments of technical matters associated with applications, activities and projects, or on any other matter relevant to or impacting on a merit criterion, including:

(a)           matters relating to the eligibility of applications, activities or projects against the definitions contained in these directions or the Programme Guidelines;

(b)           the progress reported by a Recipient against the milestones under a Funding Agreement or compliance with Funding Agreement conditions;

(c)           any other matter that pertains to merit assessment or compliance with the terms and conditions of the Cooperative Research Centres Programme.

19.          In carrying out assessments pursuant to clause 18, Innovation Australia will take into account any relevant policies or guidelines relating to the administration of the Cooperative Research Centres Programme that are issued under the Programme Guidelines.

20.          If Innovation Australia receives a request under clause 18 it must conduct the assessment within a reasonable time and provide the assessment to the Programme Delegate.

21.          The Programme Delegate may request advice from Innovation Australia on other matters relevant to the administration of the programme, including but not limited to:

(a)           additional requirements for the application and assessment process;

(b)           the scope of Eligible Activities; and

(c)           the scope of Eligible Expenditure.

Part 5: Innovation Australia to provide advice on policies and operations of the Programme

22.          Innovation Australia may advise the Minister, on non-financial administration matters relating to the Cooperative Research Centres Programme, including programme administration and the extent to which the programme is meeting its objectives.

23.          Innovation Australia may collect and analyse data on the performance of the Cooperative Research Centres Programme, and provide advice to the Minister on such performance, and will cooperate with any independent evaluation of the programme.

Interpretation

24.          In these directions:

“Act” means the Industry Research and Development Act 1986 (Cth).

“Applicant” means an entity that makes an application for funding under the Cooperative Research Centres Programme.

“Commonwealth” means the Commonwealth of Australia.

“Compliant Application” means an application that satisfies the requirements of clause 77 and clauses 24 to 31 of the Programme Guidelines.

“Cooperative Research Centres Programme” means the Programme of the same name which is administered by the Department.

“Department” means the Department of the Minister responsible for administering the Act.

“Eligible Activity” means an activity that satisfies the requirements of the Programme Guidelines.

“Eligible Applicant” means an Applicant that satisfies the requirements of the Programme Guidelines.

“Eligible Expenditure” means the expenditure incurred by an Applicant in relation to a Funding Agreement that satisfies the requirements of the Programme Guidelines and is deemed eligible for funding support by the Minister.

“Funding Agreement” means a single agreement for the receipt of Grant Funds under the Cooperative Research Centres Programme signed between the Commonwealth and a Cooperative Research Centre or Lead Participant of a CRC-Project as set out in the Programme Guidelines.

“Grant Funds” means the funds awarded to Recipients under the Cooperative Research Centres Programme as set out in a Funding Agreement.

“Innovation Australia” means the body established by section 6 of the Act.

“Minister” means the Minister that administers the Act.

“Programme Delegate” means an employee of the Department who has been empowered by the Minister, or is otherwise duly authorised, to carry out the Minister’s functions and powers in relation to the administration of the Cooperative Research Centres Programme.

“Programme Guidelines” means the guidelines that are given by the Minister to the Department to provide a framework for the operation and administration of the Cooperative Research Centres Programme, as in force from time to time.

“Project” means the set of activities that is the subject matter of the Applicant’s application for funding.

“Recipient” means an entity that is awarded funding under the Cooperative Research Centres Programme.

“Technical Assessment” has the meaning given to it in section 4 of the Act.

CHRISTOPHER PYNE

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The Hon Christopher Pyne

Minister for Industry, Innovation and Science

Dated:  26 January 2016