Mr Laurie Ferguson asked the Minister representing the Minister for Industry, Science and Resources, upon notice, on 20 September 1999:

(1) Will CSIRO retrench 37 staff from the Forest Products Laboratory at Clayton, Vic as an outcome of the organisation's triennial plan for the period 2000-03.

(2) Does Australia have a large and entrenched trade deficit in paper and wood products; if so, what reason has the management of CSIRO given for reducing research funding to the Forests Products Laboratory.

(3) What are the details of the specific research projects that will be (a) terminated and (b) rescheduled as a result of the funding reduction.

(4) Has the Minister asked CSIRO management to reconsider funding for the Forest Products Laboratory, if not, why not.

Mr Moore (Defence) —The Minister representing the Minister for Industry, Science and Resources has provided the following answer to the honourable member's question:

(1) Forestry and Forest Products Clayton Laboratory is currently undergoing significant change as a result of the recent planning for the next triennium and the winding up of the CRC for Hardwood Fibre and Paper Science which closed on 30 September 1999. To date the following staffing arrangements have been put in place:

. six staff retrenched in July 1999

. seven term staff not to be reappointed when their contracts expire

. twenty four staff identified as potentially being excess to requirements. Of these, two have been found positions elsewhere in the Organisation.

(2) Yes. The trade deficit, however, is only one factor that is considered. All decisions about research funding are based on a judgment of the return on investment in R&D in one particular area relative to returns in other possible areas of investment. In doing so an assessment was made about the attractiveness of the research, which includes an assessment of the likelihood of the capture of the potential benefits from research, and the feasibility of doing the proposed R&D.

Based on these criteria, the judgment was made that a reduced but more focused effort including some change in research skills and a closer alignment with industry partners would lead to a better return on investment.

(3) The Program/Project structure in CSIRO Forestry and Forest Products has been reorganised to focus on the highest priorities in line with the available budget. The Division will close or significantly downgrade work in long term studies of timber durability (biodeterioration), wood science and adhesives and pulp and paper processing. The Division will complete or renegotiate existing contracts to meet its commitments. Projects have not been rescheduled.

(4) No. The decisions that have resulted in reduced funding for CSIRO Forestry and Forest Products are the result of a rigorous research priorities process that CSIRO conducts every three years in conjunction with its Sector Advisory Committees which comprise members from industry, government and other research organisations. These decisions are the responsibility of CSIRO management.