David Pocock (ACT, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry and Science, Senator Farrell. Australia's R&D expenditure is just 1.68 per cent of GDP, well below the OECD average of 2.72 per cent and well below the government's own target of three per cent. Federal government spending on R&D is the lowest on record, sitting at just 0.17 per cent of GDP, with business expenditure falling to 0.9 per cent. In the federal budget, the government said it will commission a strategic examination of Australia's R&D system—noting that this was almost four months ago now. Can the minister please provide an update on when this review will commence and when the terms of reference will be released?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Pocock for his question on what is a very important issue for this government. You mentioned the figure of 1.68 per cent, which was the figure that occurred during the time of the last government, the coalition government. The time when this research peaked was when it was at 2.25 per cent, and that was when the Labor Party was in government, so the Labor Party has a strong record in this area.

As a government, we want a vibrant, growing research and development ecosystem that is going to be particularly significant, Senator Pocock, for the government's Future Made in Australia program. As you say, we have commissioned a strategic examination of research and development in Australia. The review will look at the system-wide transformations that can turn our homegrown research and innovation into long-term prosperity and growth, and it will be supported by a panel of eminent experts to guide the government's thinking on research and development. The government announced, as you said, its intention to undertake an examination of research and development in Australia in May this year. I understand that Minister Husic is currently consulting across government—and that will obviously include you—and will have more to say in coming weeks. This examination will be comprehensive and consider what Australia can learn from other countries in this area. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, first supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

The Universities Accord devoted significant time and attention to R&D and recommended that the Australian government commission a formal strategic cross-portfolio examination of national research funding. Is there a difference in ambition between what the accord recommended and what the government is now looking to do with this review? Will this be a high-level, whole-of-government review or just a desktop audit?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I think it should be clear from my first answer, Senator Pocock, that the Albanese government is ambitious in this area. The whole structure behind Future Made in Australia is all about developing our homegrown technologies, our homegrown ideas, so that we can transform those ideas into prosperity. We want to work with all those groups in our community that are interested in achieving these ambitious goals.

So the short answer to your question, I think, is: no, there are no differences there. We are both very ambitious. Of course, we are very lucky to have a minister like Minister Husic in this area, who is devoted to achieving the best possible result for our research. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, second supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

Minister, grave concerns have been raised about the impact of the government's proposed cap on international students and what impact it will have on universities' ability to cross-subsidise more than $7.7 billion on research annually. Will the review take these concerns into consideration? Does the government have a plan to actually fund research at universities in the short term?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

There's an old saying, Senator Pocock: you don't buy a dog and bark yourself.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order across the chamber!

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

Welcome back, Senator McKenzie. As your first question made clear, Senator Pocock, we've set up a review. It's going to be full of eminent citizens in this country. I don't think there's a link between what we're going to be doing in the research space and what we've been required to do in terms of capping the number of overseas students. I don't think there's a link between— (Time expired)