Fed: Govt's R&D cuts to be held up in Senate tomorrow

AAP General News (Australia)
08-06-2001
Fed: Govt's R&D cuts to be held up in Senate tomorrow

By Jim Hanna

CANBERRA, Aug 6 AAP - The government's proposed cuts to research and development (R&D)
incentives will be held up tomorrow when the legislation is expected to be referred to
a senate inquiry.

Australian Democrats Leader Natasha Stott Despoja, during an address to a key industry
group today, flagged her party's intention to block the move to narrow the eligibility
rules for R&D concessions.

Private investment had already declined since the government dropped the R&D tax concession
five years ago to 125 per cent from 150 per cent, she told the Australian Industry Group
(Ai Group)'s new economy conference.

"The proposed changes to the R&D concession announced in the government's innovation
package will narrow eligible R&D activities, thus further reducing incentives for business."

The government's record on encouraging research also received a caning at the same
forum from Opposition Leader Kim Beazley, who accused the coalition of preferring to spend
money buying votes than promoting R&D.

"Our investment in knowledge as a percentage of GDP is third last of the OECD countries
and we are near the bottom in business R&D investment," Mr Beazley said.

"Yet the government has dallied, putting expenditure on measures to promote their short-term
political interests ahead of investment in Australia's future."

Mr Beazley used his address to push his Knowledge Nation strategy, a 10-year blueprint
to invest in Australian education, research, science and technology.

The ambitious proposal however has been mocked by Treasurer Peter Costello as "Noodle
Nation" - a reference to an explanatory diagram drawn by Knowledge Nation taskforce chairman
Barry Jones - and unaffordable.

But Mr Beazley said it was not a strategy that was expected to be completed "in a Budget
or two, or even in an election or two".

"To those who say we can't afford to meet the challenge laid down by the Knowledge
Nation report, I say we can't afford not to."

AAP jph/jnb/sb m

KEYWORD: RESEARCH

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