Senator O'Brien asked the Minister representing the Minister for Science, upon notice, on 14 July 2003:

(1) Can the Minister advise the quantum of royalties earned for each of the past 8 years by the Commonwealth Scientific and Industrial Organisation (CSIRO) for each of the following breeds of wheat: (a) Lawson; (b) Brennan; (c) Gordon; (d) Dennis; (e) Patterson; (f) Rudd; (g) Tennant; (h) Mackellar.

(2) Has the CSIRO modelled the expected future royalty revenue to be earned by it from the above varieties; if so, can the Minister advise for each variety: (a) the expected quantum of royalties to be paid to CSIRO; and (b) the expected time frame over which these royalties are to be paid to CSIRO.

(3) Can the Minister advise how many breeds of wheat have been affected by the decision by CSIRO to destroy their wheat research crops as a result of the discovery during March 2003 of the presence of Wheat Streak Mosaic Virus (WSMV) at its research facilities.

(4) For each breed of wheat affected by the above CSIRO decision, can the Minister advise: (a) the varietal name; (b) the details of the trait being developed under research (for example, higher yield, specific disease resistance, lower water usage, tolerance to saline soils, etc); (c) the projected delay in bringing the variety to commercial production as a result of CSIRO's actions on discovering WSMV at its facilities; (d) the quantum of Commonwealth funds expended on research to date; (e) the details of extra Commonwealth funds expected to be expended on research as a result of CSIRO's actions on discovering WSMV at its facilities; (f) the original projections of the benefit (in monetary and yield terms) to the Australian wheat industry from this research; (g) the projected delay or reduction in benefit (in monetary and yield terms) to the Australian wheat industry from this research as a result of CSIRO's actions on discovering WSMV at its facilities; (h) the original projections of royalties to be earned by CSIRO from these varieties; and (i) the projections of the delay or reduction in royalties to be earned by CSIRO from these varieties as a result of CSIRO's actions on discovering WSMV at its facilities

Senator Vanstone (Minister for Immigration and Multicultural and Indigenous Affairs and Minister Assisting the Prime Minister for Reconciliation) —The Minister for Science has provided the following answer to the honourable senator's question:

(1) The Commonwealth Scientific and Industrial Research Organisation has earned the following royalties for the family of Dual Purpose Long Season Wheats (Lawson, Brennan, Gordon, Dennis, Patterson, Rudd and Tennant) for each of the last eight years. There have been no commercial sales of Mackellar yet.

1995/96 $ 1,401.41

1996/97 $14,968.40

1997/98 $17,613.28

1998/99 $36,037.72

1999/00 $24,718.02

2000/01 $26,870.13

2001/02 $23,178.72

2002/03 $20,762.00

(2) CSIRO has not modelled expected future royalty revenue for these wheat varieties. Discussions are underway with the commercialising agent that may change the basis for calculating royalties and projections will depend on the outcome of these discussions.

(3) Although the destruction of all plants in CSIRO glasshouses in Canberra and numerous field experiments in NSW and the ACT impacted on research and evaluation involving wheat breeding, the main effect was on breeding lines. These are experimental and require further crossing and selection to reach the stage where they can be deemed a new variety and then handed over to the commercialising agent to bulk-up adequate seed for sale of the then new variety. An analysis of all the destroyed material and subsequent actions suggests it is possible that the commercial release of an already named variety called Glover might be delayed for one year.

(4) (a) Glover is the only named variety affected (see (3) above). It should be noted that the quantitative data below can only be broad estimates at this stage.

(b) The traits being developed are resistance to Barley Yellow Dwarf Virus combined with resistance/ tolerance to multiple other diseases and robust grain yield and quality.

(c) A possible delay of commercial release for one year.

(d) Around $1.25 million in Commonwealth funds over 12 years.

(e) CSIRO expects that there will be around $30,000 in extra Commonwealth funds expended on the development of Glover as a result of the CSIRO decision to destroy its wheat research crops.

(f) The original projections of the benefits of the release of Glover to the Australian wheat industry are around $1,000,000 per annum due to an extra 5000 tonnes of grain production at full scale commercial production, which generally occurs 3 - 5 years after commercial release.

In the first year of commercial production, it is expected Glover would generate benefits of $150,000 in monetary terms and 750 extra tonnes of grain.

(g) A delay of around one year is expected. The projected delay or reduction in benefit in monetary terms is calculated at 750 extra tonnes of grain not delivered. This is valued at $150,000.

(h) CSIRO expects to earn around $54,000 per annum in royalties once Glover is in full commercial release, which is between 3 -5 years following its commercial launch.

(i) There is likely to be a delay of around one year in receipt of royalties by CSIRO as a result of the CSIRO decision to destroy its wheat research crops.