Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

While I do support the Australian Research Council Amendment Bill, I believe we need to look more closely at the way we fund research and development activities in Australia. I note that while this bill does increase the funding allocated to the Australian Research Council, it does not reverse the trend of funding amounts declining over time. If we are to be the clever country, then this is a real area of concern.

The recent announcements by Holden and Toyota and the problems faced by SPC Ardmona and other manufacturers and processors demonstrate only too clearly that we need to be focusing on rebuilding that sector and that involves smart, innovative approaches. It involves focusing on R&D. I do not think it is good enough to accept that we will be almost the only G20 nation without an automotive manufacturing sector able to not only design but also manufacture a car.

The way forward, and not just for manufacturing, is to focus on research and development. We need to focus on re-education and development so that we can build skills and invest in the future. This is not limited to manufacturing. We know that Australia is falling behind in our educational standards, so it is common sense that we should be researching our education system and how Australian children learn.

In South Australia, the state and federal governments have invested many millions of dollars in the new South Australian Health and Medical Research Institute, but there is no point in having a state-of-the-art building with no researchers to fill it. It can be hard to justify spending on research, particularly when there seem to be so few concrete outcomes, but as a proud South Australian I would like to point out the example of Howard Florey. He worked with Scotsman Alexander Fleming to discover penicillin, but that discovery would never have happened if the perpetually messy Fleming had not accidentally left something culturing in his laboratory while he went on holiday.

The end result of R&D spending is not always known, but that should not be a reason not to do it. I understand that we are in a difficult fiscal environment, but we have to be careful where we trim budgets. We have to be tactical and consider where we can get the best long-term value for money. The government has focused on the increased funding provided by that bill and I understand that. I hope in the next few years we can see a real increase, not just less of a decrease, in these areas.

Scott Ryan (Victoria, Liberal Party, Parliamentary Secretary to the Minister for Education) Share this | Link to this | Hansard source

I thank senators for their contribution and commend the bill to the Senate.

(Quorum formed)

Question agreed to.

Bill read a second time.