Federal Register of Legislation - Australian Government

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Directions/Other as made
This instrument gives directions to the Industry Research and Development Board (“the Board”) in relation to additional functions of the Board in respect of the ACIS Stage Motor Vehicle Producer Research and Development Scheme 2000 and the policies and practices to be followed by the Board in the performance of the additional functions.
Administered by: Industry
Exempt from sunsetting by the Legislative Instruments Act 2003 s 54(2) item 46
Registered 18 Jan 2006
Gazetted 25 Jun 2004
Date of repeal 19 Mar 2014
Repealed by Spent and Redundant Instruments Repeal Regulation 2014

I, IAN ELGIN MACFARLANE, Minister for Industry, Tourism and Resources,
give these Directions to the Industry Research and Development Board under subsections 19 (1) and 20 (1) of the Industry Research and Development Act 1986.

Dated 22 June 2004

IAN MACFARLANE


Contents

Part 1                    Preliminary

                        1     Name of Directions                                                                              3

                        2     Commencement                                                                                  3

                        3     Object                                                                                                3

                        4     Definitions                                                                                           3

                        5     Additional functions of the Board                                                           4

                        6     Policies and practices to be followed in performing additional functions     4

Part 2                    Consideration of eligible R&D projects

                        7     Procedure for consideration of eligible R&D projects                               5

                        8     Board may decline to provide merit ranking                                            5

Part 3                    Assessment and merit ranking of eligible R&D projects

                        9     Assessment of applications in respect of eligible R&D projects                6

                       10     Merit criterion 1: the calibre of new R&D activity that will be generated in Australia by the eligible R&D project                                                                                        6

                       11     Merit criterion 2: the technical merit of the eligible R&D project                7

                       12     Merit criterion 3: the level of benefit, including environmental benefit to the wider Australian community of the eligible R&D project                                                   7

                       13     Merit criterion 4: the contribution of the eligible R&D project to the sustainability of an internationally competitive automotive industry in Australia                                           8

Part 4                    Assessment of requests to vary funded projects

                       14     Assessment of requests                                                                      9

Part 5                    Technical assessment of funded projects

                       15     Technical assessment of funded projects                                             10

Part 6                    Assessment of performance of Scheme

                       16     Assessment of performance of Scheme                                               11

 



 

Part 1                 Preliminary

  

1              Name of Directions

                These Directions are the Industry Research and Development (ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme) Directions 2004.

2              Commencement

                These Directions commence on the date of their notification in the Gazette.

3              Object

                The object of these Directions is to give directions to the Board in relation to:

                (a)    additional functions of the Board in respect of the Scheme; and

               (b)    the policies and practices to be followed by the Board in the performance of the additional functions.

4              Definitions

                In these Directions:

Act means the Industry Research and Development Act 1986.

applicant means an MVP that makes an application.

application means an application under section 13 of the Scheme.

application round has the meaning given by section 4 of the Scheme.

eligible R&D project has the meaning given by subsection 5 (2) of the Scheme.

funded project has the meaning given by section 4 of the Scheme.

funding agreement has the meaning given by section 4 of the Scheme.

merit criteria means the criteria set out in sections 10, 11, 12 and 13.

Minister has the meaning given by section 4 of the Scheme.

MVP has the meaning given by section 6 of the ACIS Administration Act 1999.

R&D means research and development.

R&D expenditure base has the meaning given by section 4 of the Scheme.

Scheme means the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme 2004.

Note   The Scheme is a merit-based R&D scheme that is administered by the Department administered by the Minister and is intended to increase the level of R&D activity in the automotive industry.

Secretary has the meaning given by section 6 of the ACIS Administration Act 1999.

5              Additional functions of the Board

                For subsection 19 (1) of the Act, the following functions are additional functions of the Board:

                (a)    considering eligible R&D projects under Part 2;

               (b)    assessing eligible R&D projects under Part 3;

                (c)    assessing proposed variations to funded projects under Part 4;

               (d)    conducting technical assessments of funded projects or activities under Part 5;

                (e)    making recommendations to the Secretary under Parts 4 and 5.

6              Policies and practices to be followed in performing additional functions

                For subsection 20 (1) of the Act, the Board must comply with these Directions in performing the additional functions mentioned in section 5.


 

Part 2                 Consideration of eligible R&D projects

  

7              Procedure for consideration of eligible R&D projects

         (1)   The Board must assess, for each application round, applications in respect of eligible R&D projects referred to the Board by the Secretary.

         (2)   Subject to section 8, the Board must provide a merit ranking of those projects to the Secretary in accordance with Part 3.

         (3)   The Board must consider applications in respect of eligible R&D projects made in a particular application round as soon as practicable after the applications have been provided to the Board.

8              Board may decline to provide merit ranking

                The Board may decide in relation to a particular application round to refuse to provide a merit ranking in respect of a particular eligible R&D project if it is not satisfied with the level of merit of the project in relation to one or more of the merit criteria.


 

Part 3                 Assessment and merit ranking of eligible R&D projects

  

9              Assessment of applications in respect of eligible R&D projects

                Subject to section 8, the Board must:

                (a)    assess each application in respect of an eligible R&D project referred to it in an application round according to the merit criteria; and

               (b)    by arriving at a score for each merit criterion, establish a relative merit ranking of all projects considered by the Board in the application round.

10            Merit criterion 1: the calibre of new R&D activity that will be generated in Australia by the eligible R&D project

         (1)   The Board must assess the calibre of new R&D activity that will be generated in Australia by the eligible R&D project.

         (2)   In assessing the calibre of new R&D activity to be generated by the project, the Board must determine whether the project:

                (a)    involves an entirely new line of R&D, and is additional to the applicant’s existing R&D expenditure base; or

               (b)    enables the further development of a current line of R&D, and is additional to an applicant’s existing R&D expenditure base; or

                (c)    involves an entirely new line of R&D, but is not additional to an applicant’s existing R&D expenditure base; or

               (d)    does not meet paragraph (a), (b) or (c).

         (3)   The Board must:

                (a)    regard a project that meets paragraph (2) (a) more highly than a project that meets paragraph (2) (b); and

               (b)    regard a project that meets paragraph (2) (b) more highly than a project that meets paragraph (2) (c); and

                (c)    regard a project that meets paragraph (2) (c) more highly than a project that meets paragraph (2) (d).

Note   In an application for credits under the Scheme, each applicant will be required to state whether the proposed project meets paragraph (2) (a), (b) or (c). The Board must determine whether the project meets paragraph (2) (a), (b), (c) or (d). It is possible that the Board’s determination may differ from the applicant’s assessment of the project.

11            Merit criterion 2: the technical merit of the eligible R&D project

         (1)   The Board must assess the technical merit of the eligible R&D project.

         (2)   In assessing the technical merit of the project, the Board must consider the following:

                (a)    the extent to which the project suggests scope for future growth beyond the time-frame of the project;

               (b)    the extent to which the project involves leading edge technologies, techniques or skills for Australia;       

                (c)    the extent to which the project includes activities that are new for the applicant in Australia;

               (d)    the extent to which the project is world class in nature;

                (e)    the degree of innovation evident in the project;

                (f)    the extent to which the project will create new or improved linkages along the value chain with Australian suppliers;

                (g)    the extent to which the applicant will extend existing, or forge new links with research institutions;

                (h)    the facilities and research infrastructure available to the applicant, and the capabilities of the personnel to be involved (including the facilities and personnel of contract partners);

                 (i)    whether the applicant has provided a clear and detailed R&D plan including commercialisation strategies.

12            Merit criterion 3: the level of benefit, including environmental benefit to the wider Australian community of the eligible R&D project

         (1)   The Board must assess the economic and environmental benefits likely to result from the eligible R&D project.

         (2)   In assessing the economic and environmental benefits likely to result from the project, the Board must consider the following:

                (a)    the extent to which the project enhances or strengthens the Australian automotive industry’s capabilities (for example, by filling a gap in the value chain, developing expertise, or introducing new skills);

               (b)    the extent to which there is potential for benefit to other Australian industries as a result of the applicant’s introduction of new transferable skills, knowledge, technologies or techniques;

                (c)    the extent to which the project utilises Australian capabilities, resources and inputs including Australian-developed intellectual property;

               (d)    the extent to which the project contributes to Australia’s environmental savings.

13            Merit criterion 4: the contribution of the eligible R&D project to the sustainability of an internationally competitive automotive industry in Australia

         (1)   The Board must assess the contribution to the sustainability of an internationally competitive automotive industry of the eligible R&D project.

         (2)   In assessing the contribution to the sustainability of an internationally competitive automotive industry of the project, the Board must consider the following:

                (a)    the extent to which the project represents a commitment to doing business in Australia in the longer term, having regard to the applicant’s long-term R&D and business strategy in Australia;

               (b)    the extent to which the project utilises and builds upon Australian industry’s strengths;

                (c)    the extent to which the project is an integral part of the applicant’s future global R&D strategy;

               (d)    the extent to which R&D facilities in Australia will be responsible for a higher proportion of the applicant’s global R&D as a result of the project.


 

Part 4                 Assessment of requests to vary funded projects

  

14            Assessment of requests

         (1)   If an MVP has asked the Secretary to consider a variation of a funded project, the Secretary may ask the Board:

                (a)    to assess the proposed variation; or

               (b)    to consider the effect of the proposed variation on the relative merit of the project under the merit criteria.

         (2)   If the Board receives a request under subsection (1), it must:

                (a)    assess the proposed variation as soon as practicable and give the assessment to the Secretary; and

               (b)    recommend that the Secretary approve or refuse to approve the proposed variation.


 

Part 5                 Technical assessment of funded projects

  

15            Technical assessment of funded projects

         (1)   The Secretary may ask the Board:

                (a)    to provide a technical assessment of the progress reported for a funded project by the MVP undertaking the project compared to the technical milestones specified in the funding agreement for the project; or

               (b)    to provide a technical assessment of a specified activity being undertaken by an MVP as part of a funded project.

         (2)   If the Board receives a request under subsection (1), the Board must:

                (a)    conduct the technical assessment as soon as practicable and give the assessment to the Secretary; and

               (b)    if the technical assessment is conducted in relation to a proposed variation to a funded project, recommend that the Secretary approve or refuse to approve the proposed variation.


 

Part 6                 Assessment of performance of Scheme

  

16            Assessment of performance of Scheme

                The Board must, at the request of the Minister, cooperate with any assessment of the performance of the Scheme in meeting its objective.