Mr TRUSS (Customs and Consumer Affairs) (12:50 PM) —in reply—I begin by thanking the honourable member for Bonython (Mr Martyn Evans) and the honourable member for Forde (Mrs Elson) for their contributions to this debate, particularly the honourable member for Forde who took the opportunity to respond to some of the baseless allegations made by the member for Bonython in relation to the government's commitment to science and, in particular, the content of last night's federal budget.

The honourable member for Bonython in a very eloquent way used typical Labor rhetoric to misrepresent the government's commitment to science and technology, but sadly demonstrated the sort of fiscal illiteracy that led to the $10.3 billion deficit. He accused the government of lacking a commitment to science but at least had the grace to admit later in his remarks that Labor had not done much in this field.

It is unfortunate, perhaps, that science and research and development issues do not gain much debating time in the House or the time of members of parliament in addressing the important issues for our country for the future. It is important that we have, as a nation, a commitment to science and a commitment to doing things better in the future.

It is just beyond question, in spite of the comments of the member for Bonython, that there is a very high level of government expenditure in Australia on research and development by world standards. At a government level we spend more on research and development than does the US or, indeed, other leaders of industry in the OECD.

Unfortunately, however, industry itself has not been quite so forthcoming and there has been a much smaller proportion of industry budgets spent on research and development. Whilst that problem has been improving over recent years and there has been increased expenditure by business on research and development, we still have some way to go to reach leading practice around the world in that regard.

The government is determined to ensure that there is additional expenditure and commitment to research and development issues and that was reflected in last night's budget. The 1998 budget increased expenditure on science and technology by $90 million overall. I am surprised that the member for Bonython, since he endeavoured to give the impression to the committee that he had studied the budget in detail, had not uncovered that very obvious and very important statistic.

There has been a particularly large increase in research and development in the health field, with major commitments in that regard and expenditure for the NHMRC up by nine per cent and in other health areas by 38 per cent. There is also support for industry and their efforts in research and development, with a 30 per cent increase in the Start program and IIF program.

The estimate for the expenditure on tax concessions for R&D is up by six per cent. Expenditure on science agencies, such as the CSIRO, ANSTO and AIMS, is up by 3.6 per cent. There is no diminution of the government's commitment to science in this budget. Indeed, there is a clear indication that there will be more money available and, indeed, that the government will be following on its rhetoric with classic action by delivering additional funds to ensure that we have adequate resources available to support industry and, indeed, to back up the government's own commitment to expenditure in science and research and development.

Turning particularly to the content of this bill, it implements changes announced by the government last year as an important element in improving Australia's science and technology administrative arrangements by bringing together the resources of ASTEC and the Prime Minister's Science and Engineering Council, PMSEC, into one organisation. The new organisation has now been reconstructed as the Prime Minister's Science, Engineering and Innovation Council. It combines the ability to draw on the best independent advice available, conduct studies—as ASTEC does at present—and deliver outcomes direct to the federal ministry.

By repealing the ASTEC Act and implementing these new arrangements, the government will strengthen support for innovation and industrial growth. I note that the bill is supported by all sides of the House and I thank members opposite for their cooperation in that regard. I commend the bill to the House.

Question resolved in the affirmative.

Bill read a second time.

Mr DEPUTY SPEAKER (Mr Nehl) —If no member wishes to consider the bill in detail, I will put the report question forthwith. The question is that this bill be reported to the House without amendment.

Question resolved in the affirmative.

Main Committee adjourned at 12.57 p.m.