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Australian Science and Technology Council Act - Australian Science and Technology Council - Report - For - 1993-94


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AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL

Annual Report 1993-94

Australian Government Publishing Service Canberra

© Commonwealth of Australia 1994 ISBN 0644 354879

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and

inquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601.

Produced by Australian Government Publishing Service

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a s t e c

Australian Science and Technology Council

Senator the Honourable Peter Cook Minister Assisting the Prime Minister for Science Parliament House Canberra ACT 2600

Dear Minister

This is the annual report of the Australian Science and Technology Council (ASTEC) for the period July 1993 to March 1994 prepared in accordance with section 27 of the Australian Science and Technology Council Act 1978, subsection 25(6) of the Public Service Act 1922 and with the requirements referred to in subsection 25(7) of the Public Service Act 1922.

Under new arrangements agreed with the Joint Committee of Public Accounts, the Government has undertaken to table annual reports not later than 31 October 1994. Subsection 25(8) of the Public Service Act 1922 requires you to cause a copy of the report to be laid before each House of the Parliament within fifteen sitting days after the day on which you received the report.

On 15 March 1994, amendments to the ASTEC Act were enacted. One effect of those amendments is that future annual reporting on ASTEC activities will be included within the Annual Report of the Department of the Prime Minister and Cabinet as well as through the Council's

Annual Report.

Yours sincerely

D G Williams Chairman

30 September 1994

For and on behalf of

L Beilin D Blesing G J Clark D Clark

A Henderson-Sellers R D Johnston D J Nicklin P J Laver

W J Peacock G Pitman K Schott J D Vines

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ASTEC is a principal source o f independent advice to Government on a wide range ofpolicies and programs related to science and technology, and o f concern to Commonwealth departments and agencies, higher

education institutions and private enterprise

Please address inquiries or comments about the Annual Report to:

The Assistant Secretary ASTEC Branch

Department o f the Prime Minister and Cabinet PO Box E439 QUEEN VICTORIA TERRACE ACT 2600

Tel: (06)271 5084 Fax (06)271 5125

INTRODUCTION

This report describes the activities o f the Australian Science and Technology Council (AS TEC) for the full 1993-94 year and on ASTEC's financial management and related activities for the year 1 July 1993 to 14 March 1994. For the remaining period, 15 March to 30 June 1994 , and in future years the Department o f the Prime Minister and Cabinet is responsible for reporting on those matters. Whilst ASTEC will no longer report on its financial operations it will continue to report on its activities.

ASTEC has endeavoured to prepare this report as far as possible in accordance with the new Requirements for Departmental Annual Reports approved by the Joint Committee o f Public Accounts (JPCA) as well as with the 1982 Guidelines for the Content, Preparation and Presentation of Annual Reports by Statutory Authorities. As this is the last report to detail ASTEC's financial and related activities, ASTEC has chosen to publish all relevant information unlike other departments which are not required to published additional information but maintain it

should it be required by Members of Parliament, Senators or the public.

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ASTEC CORPORATE OBJECTIVE

To contribute significantly to enhanced strategic development o f Australia's science and technology system. To strengthen the linkages between government, the research community, industry and the community in general.

CHAIRMAN'S REPORT

ASTEC has emerged from a difficult period of review and reorganisation with a reinforcement o f its charter as a prime source o f independent advice to the Commonwealth Government on science and technology.

ASTEC is responsible to the Prime Minister through the Minister Assisting the Prime Minister for Science, Senator Cook, who is also a Cabinet Minister. The Council operates in close consultation with the Prime Minister's Science and Engineering Council (PMSEC) and the Coordination Committee on Science and Technology (CCST), and is supported by the Office of the Chief Scientist in the Department o f the Prime Minister and Cabinet. ASTEC is well

positioned to take a key role in providing an overview o f future directions for science and technology and in responding to specific requests for advice.

This role has been strengthened by new appointments to the Council, maintaining an appropriate mix o f representation from academia and industry, research and development and management.

The crucial interaction between science and industry, which is essential to ensure the most effective balance between scientific research and development and market needs, has been reinforced by other recent government initiatives announced in the White Paper Working Nation.

The principal studies completed during 1993-94 were Research and Technology in tropical Australia and a Review o f the operation o f external earnings targets fo r CSIRO, ANSTO and AIMS. The report Research and Technology in tropical Australia, which examines the development o f Australia's north and the role that research and technology might play in the next decade, was the culmination o f eighteen months o f extensive consultation within the region. The Review o f the operation o f external earnings targets fo r CSIRO, ANSTO and AIM S examined the

effectiveness o f the external earnings requirement for these agencies as a mechanism for achieving the policy objective of promoting links with industry and other research users, and evaluated the impact of current external earnings requirements.

In December 1993 ASTEC prepared an Issues Paper as an input to the Green Paper on Employment Opportunities. ASTEC also completed an occasional paper: Energy Research and Technology in Australia. At the end o f 1993-94, ASTEC was close to completing a study of research data networks, having released a set of draft findings in April 1994. Details o f these activities are contained in the body o f this report.

The centrepiece o f ASTEC's 1994-95 work program will be the study o f foresight in science and technology. The primary objective o f the study, which is called Matching science and technology to future needs, is to form perceptions o f what Australia will want its science and technology community to be doing over the next fifteen years.

The Council will examine possible national and global changes to the year 2010. It will look at Australia's key future needs and opportunities affected by science and technology, and potential mismatches in the supply of and demand for science and technology. Two key success factors for the study are a recognition o f the pluralist nature o f Australian science and technology, with the implications that has for setting priorities, and the involvement o f all interested groups in a widely

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accessible and transparent process.

ASTEC will seek to act as a catalyst and every effort will be made to ensure that all interested groups are fully consulted both during the data collections and analysis phase and during the development of policy relevant conclusions for government.

The study is intended to develop an information base which can assist government and industry to make better informed decisions on the development and application o f science and technology.

I should like to conclude by thanking the staff o f the ASTEC secretariat for a sterling effort during unsettled times and commend them on their high degree of professionalism.

N e w O p e r a t i n g a r r a n g e m e n t s

On 24 June 1993, the then Minister Assisting the Prime Minister for Science, Senator the Honourable Chris Schacht, announced important changes to the Government's science and technology advisory arrangements.

The Government has retained ASTEC as a science and technology advisory body, providing independent advice, as recommended by the Myers Review Committee in October 1992, and has decided that ASTEC should work more closely with the Prime Minister's Science and Engineering Council (PMSEC), preparing short and long term studies and reports for its consideration.

The Chief Scientist, who is Executive Officer o f PMSEC has become a member of ASTEC and two members o f ASTEC have been appointed to PMSEC, in addition to the Chairman, who was already an ex officio member.

In announcing the new arrangements, Minister Schacht said that the strengthened linkages between ASTEC and PMSEC would increase the effectiveness of both bodies, and the quality of advice to Government.

To further improve links to PMSEC and other areas o f government, the staff of ASTEC have been transferred to the Office o f the Chief Scientist in the Department of the Prime Minister and Cabinet. This required amendments to the ASTEC Act, which received Royal Assent on 15 March 1994.

Prior to these amendments, ASTEC was a 'prescribed authority' under the Audit Act, meaning that the regulatory framework of the Audit Act, Finance Regulations and Finance Directions applied to ASTEC as if it were a separate Department. It had resources allocated to it within the overall funding of the Prime Minister and Cabinet Portfolio.

Following passage of the amendments, the Secretary of the Department of the Prime Minister and Cabinet is responsible for the financial management and control functions for ASTEC, and the resources required to support Council are provided through the Department.

The Council is responsible for reporting against its functions in the ASTEC Act, and the Department of the Prime Minister and Cabinet is accountable for ASTEC's resources under the Audit Act and its subsidiary legislation, as well as the Public Service Act.

The Department provides the Council with financial information, for use in making resource allocation decisions in determining its work program. The Council is accountable for the use of these resources to achieve its goals.

The staff required to assist ASTEC perform their duties in accordance with the directions of the Council. However, in regard to the performance o f functions under the Audit Act, Public Service

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Act and Finance Regulations, staff perform their duties in accordance with the directions of the Secretary of the Department.

FUNCTIONS OF ASTEC

The functions o f the Council are unchanged in the amended Act. They are to investigate, and to furnish information and advice to the Commonwealth Government in respect of, matters relating to science and technology, including the following matters:

• the advancement o f scientific knowledge;

• the development and application of science and technology in relation to the furtherance of the national well-being;

• the adequacy, effectiveness and overall balance o f scientific and technological activities in Australia;

• the identification and support o f new ideas in science and technology likely to be of national importance;

• the practical development and application o f scientific discoveries;

• the fostering of scientific and technological innovation in industry; and

• the means o f improving efficiency in the use o f resources by the application of science and technology.

The Council provides the Minister with such reports as he or she requests on matters relating to its functions, and may give the Minister such other reports on matters relating to its functions as it thinks fit.

The Council may do all things necessary or convenient to be done for or in connection with, or as incidental to, the performance o f its functions and, in particular, may:

• conduct an inquiry, including a public inquiry, into any matter being investigated by the Council; and

• collect, or arrange for the collection of, information relating to any matter being investigated by the Council.

The Council may appoint a committee to assist it and such a committee may consist o f such persons, whether members or not, as the Council thinks fit.

ACCOUNTABILITY AND REPORTING

The Chairperson and members o f the Council are accountable through the Minister to Parliament for the performance of the above functions, and this includes setting goals and providing and reporting on results through the Council's Annual Report.

Prior to the amendments to the Act, ASTEC reported as if it were a separate Department, in line with the Departmental Annual Report Requirements. Now all matters relating to the Audit Act, Public Service Act, Finance Regulations and Finance Directions are covered in the Department's Annual Report, and are no longer dealt with in ASTEC's Annual Report.

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ACTIVITIES OF ASTEC

COMPLETED STUDIES

Research and Technology in Tropical Australia

The Prime Minister commissioned ASTEC to undertake a study of research and technology in tropical Australia in April 1992. ASTEC's report was tabled in Parliament in October 1993 by the then Minister Assisting the Prime Minister for Science.

Research and Technology in Tropical Australia comprehensively examines the development o f Australia's north and the role that research and technology might play in the next decade. It informs the rest o f Australia about tropical Australia's cultural and physical assets, its current research infrastructure, and its needs. The report was the culmination o f eighteen months of

extensive consultation within the region.

Terms o f reference

Review the distribution, organisation andfunding o f research and development (R&D) activities relevant to tropical Australia.

Assess these activities in terms o f their effectiveness in relation to the realisation o f opportunities in the region, to the resolution o f problems in the region and to national well-being; and their potential contribution to furthering international collaboration.

Identify opportunities fo r tropical zone R&D and associated technologies fo r the next decade.

Recommend appropriate action to capitalise on identified opportunities and to rectify any deficiencies.

The report analyses R&D on a sectoral basis and also on a cross-sectoral basis to ensure that broader issues are given proper weight. Cross-sectoral issues were examined under three broad headings:

• R&D to take advantage o f tropical Australia for the benefit of the nation and opportunity for world leadership;

• R&D for a sustainable society in the region; and

• R&D specific to the environment o f tropical Australia.

The report seeks to ensure that future R&D in tropical Australia contributes to the social and economic development o f the region. It reviews R&D in tropical Australia, identifies future opportunities for tropical zone research and technology for the next decade and recommends actions to capitalise on those opportunities and to rectify deficiencies.

The ASTEC report identifies insufficient linking of R&D to community, business or national needs (including the ecologically sustainable development o f tropical Australia) as a major structural problem with R&D for tropical Australia. The report recommends a strategic planning or business system' approach to the Commonwealth Government funding and performance of R&D for tropical Australia. The report identifies examples of'emerging' industries which could benefit from a coordinated tropical Australian strategic plan.

ASTEC notes that the challenges of ecologically sustainable development loom large for industries in tropical Australia. Environmental problems stemming from the rapid intrusion into the tropics

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of temperate zone agricultural and mining technologies are becoming urgent.

The report recommends that research management for the tropical savanna and woodland ecosystem requires immediate attention, suggesting an approach that involves both States and the Territory working cooperatively in the management of an ecosystem which is so important to the mining, tourist, and agricultural industries of tropical Australia.

Many people living in remote areas o f tropical Australia have reduced community services and social support. The contribution of research and technology to the health of tropical Australians, particularly those of Aboriginal and Torres Strait Islander heritage, is identified as a major

concern. The report recommends an investigation of research on public health delivery to tropical Australian communities.

The ASTEC report recommends that a mechanism be put into place to oversee implementation of the vision outlined in its report. At present there is no regional body with responsibility for tropical research and technology policy.

The report was presented to the November 1993 meeting of the Prime Minister's Science and Engineering Council. The Prime Minister requested that the Coordination Committee on Science and Technology (CCST) develop a draft government response to the report.

Review of the Operation of External Earnings Targets for CSIRO, ANSTO and AIMS

During the 1980s, pressures developed both from within and from outside Commonwealth Government research agencies to make their research more relevant to the well-being and economic prosperity of the nation. These pressures led in 1988 to the definition of a specific external earnings target for the CSIRO, followed in late 1990 by targets for the Australian Nuclear Science and Technology Organisation (ANSTO) and the Australian Institute of Marine Science (AIMS). The targets were 30 per cent o f total income by 30 June 1991 for CSIRO; 30 per cent of appropriation income by 30 June 1994 for ANSTO; and 30 per cent of appropriation income by 30 June 1996 for AIMS. A specific goal was to promote links with industry and other research users.

The effectiveness of this policy has not been examined since its introduction, and on 25 August 1993 Senator Schacht, as Minister Assisting the Prime Minister for Science, announced the review and asked ASTEC to review the impact o f the targets.

Terms o f reference

Given the Government's policy objectives o f promoting links between Government research agencies and industry and other research users, through encouraging growth in external fo lding o f research; and recognising that there are a number o f government programs addressing business research and development needs:

Review the effectiveness o f the external earnings requirement fo r CSIRO, ANSTO and AIMS as a mechanism fo r achieving the policy objective o f promoting links with industry and other research users.

Evaluate the impact o f current external earnings requirements, and o f any reformulation o f those requirements, including the particular impacts on:

a) the level and quality o f interaction between the research organisations and industry, including small and medium sized businesses, and other research users;

b) the performance o f core research responsibilities and the balance o f research effort within

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the research organisations; and

c) the effective management o f sta ff and other resources within the research organisations.

Assess the appropriateness o f external earnings as a measure o f interaction between Government research organisations and industry by comparison with alternative performance indicators.

Recommend:

a) Whether any modifications are necessary to the way targets are set and managed.

b) Whether the Government should consider any other mechanisms to assist in achieving the policy objective.

ASTEC convened a Working Party led by Professor Ron Johnston to undertake the study. Some 60 written submissions were received on the study. Consultations were held with the heads, senior managers and research staff o f CSIRO, ANSTO and AIMS, and also with companies, industry bodies and other user representatives and trade unions representing research staff. ASTEC also commissioned Sultech to investigate the interaction between selected small and medium-sized companies and Commonwealth Government research organisations. The final report was tabled in Parliament in March 1994.

ASTEC received a strong, though not unanimous, view that the organisations had been strengthened by the targets. The targets had influenced the agencies by directing them towards work that was more intimately linked with industry and encouraged the development of new, commercially oriented skills.

The requirement for a higher level of external earnings has produced challenges for the research agencies. For example, a significant proportion o f appropriation funding has been diverted to achieve the external earnings targets; contracts with large rather than small organisations have been preferred; and free consultations (eg for smaller businesses) have become rarer.

ASTEC found the operation o f external earnings targets had been effective in promoting links with industry and other research users - and indeed had improved the effectiveness of the research agencies. ASTEC recommended that targets be retained (with minor modifications to calculation and reporting) and negotiated between each research agency and the Minister on a triennial basis. ASTEC was reluctant to recommend higher targets because of the risk (at least in the short term) that too much appropriation money could be diverted to achieve the target. This would place at risk the intellectual capital and longer term research which is the key to the effectiveness o f the organisations, as well as adversely affecting research programs of national importance and public good. However, ASTEC believed that as the benefits of externally funded research become clearer, and management more adept, the trend to higher levels will continue.

The external earnings target is an attractive indicator o f linkages with users because it is simple, quantitative and easily understood. It is a measure of serious investment decisions by sponsors who have strong interests in the outcomes of the work. However it has limitations as a sole indicator, and ASTEC recommended that a broader range of indicators be introduced, including indicators of research outcomes.

ASTEC considered that the external earnings targets have tended to focus research agencies’ efforts away from links with small and medium-sized enterprises. ASTEC recommended that the research agencies develop explicit strategies for their interaction with small and medium-sized enterprises in accord with their statutory responsibilities, and move to the best standards of

practice in their commercial interaction with such firms. Because of the difficulty o f satisfying the

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research and technology needs o f small and medium-sized enterprises in the current environment, ASTEC supported the establishment o f an active science and technology information, referral and brokerage function (possibly through the National Industry Extension Service) to help them.

ASTEC is aware that manipulating an apparently simple parameter such as the external earnings target could change the very nature of an organisation by inappropriately changing the balance between public good and commercial research. ASTEC supports the continuing development o f

linkages with industry and other users and has identified a strong trend in this direction. The spirit of ASTEC’s recommendations is to encourage this trend to continue, while providing increased accountability and minimising the less desirable effects o f the external earnings targets.

Energy Research and Technology in Australia

ASTEC released its study of energy research and technology as an Occasional Paper in January 1994. The Paper covers the challenges facing the energy sector; the structure o f the energy industry; the commercialisation and export of energy research and technology; the funding of energy research and development; the organisation and distribution o f energy research and technology development; and priority setting in energy research and technology.

Terms o f reference

Define the appropriate role o f research, development and demonstration (RD&D) in supporting Australia's competitive position in the changing world environment and energy market.

Review the distribution, organisation andfunding o f Australian RD&D activities relevant to energy production and use.

Recommend appropriate action to increase the effectiveness o f Australia's energy RD&D activities.

The Paper questions whether the present funding, allocation, priority setting and infrastructure arrangements adequately address the challenges facing the energy industry in Australia. It finds that the conduct and support o f energy research and technology development in Australia are operating reasonably well for present circumstances. But the present system will not respond well to future changes in the use and delivery of energy. There are opportunities for improved coordination and a sharper emphasis on selected areas o f activity, which will result in improvements in the efficiency and effectiveness o f Australian energy research and technology development.

Gene Technology

ASTEC completed its study o f gene technology with a presentation and release of its Occasional Paper No. 27: Gene Technology: Issues fo r Australia at the November 1993 meeting o f the Prime Minister's Science and Engineering Council (PMSEC). The Paper provides a comprehensive assessment o f gene technology issues and opportunities in Australia. Recommendations called for a program of action involving communication and public acceptance, a regulatory system that is efficient, effective and open, and, the development o f effective linkages between researchers and industry.

ASTEC Council member Dr Jim Peacock chaired the study. Two Working Parties were convened, one dealing with the applications of gene technology in plant and animal production, the other dealing with medical applications. The Working Parties commissioned papers from scientists (both industry and public-sector based) and determined the general shape and objectives of the study.

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Specific objectives

• To discuss the extent to which applications o f gene technology have advanced and to highlight the present and imminent impacts on the Australian community;

• To give a critical overview o f the Australian research, development and commercialisation effort;

• To consider the Australian scientific and industrial effort in gene technology within the international context and to map the pattern o f strategic alliances which has emerged;

• To suggest ways in which greater commercial benefit might accrue to Australia; and

• To outline a strategy through which the scientific and industrial communities can better communicate with the wider public on gene technology matters, particularly regulation.

Issues raised by the study were discussed at a gene technology round table attended by science, industry and community representatives. While the views expressed in the report are those of ASTEC, every effort was made to ensure that interested parties had an opportunity to comment on the draft report and that, as far as possible, the report reflected a consensus perspective on the evolution and application o f gene technology in Australia. A Government response is being developed.

CURRENT STUDIES

Research Data Networks

In October 1993, the then Minister Assisting the Prime Minister for Science, Senator Schacht, commissioned ASTEC to undertake a study into Australia's future requirements for national research data networks. Research data networks enable researchers throughout the world to communicate with each other, to work collaboratively, share results and publications, access experimental data, and use remote facilities such as supercomputers.

Terms o f reference

Examine Australia's requirements fo r national research data networks, including their use by universities, government research organisations, education and industry;

Examine the role o f research data networks in providing data services fo r the wider community (including international developments) and the means o f providing services; and

Recommend appropriate actions that could be taken by the Commonwealth Government.

The ASTEC Working Party was convened by Professor Ann Henderson-Sellers. From the outset the Working Party used Australia's research data network (the Australian Academic and Research Network or AARNet) to consult and communicate. For example, the call for public submissions

was made over the AARNet in addition to conventional newspaper advertisements.

The Working Party received 85 submissions and consulted widely with key stakeholders within the research and higher education community, industry and government. In April ASTEC released the study's draft findings entitled The Global Connection and invited public comment. An excellent response was achieved with over 130 written comments.

ASTEC commissioned a consultant to undertake a study of the demand for high bandwidth applications on research data networks in Australia, and the implications for future network

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requirements The report. Assessment o f high bandwidth applications demand on research data networks, undertaken by Cutler and Company, was published by ASTEC in May

In June ASTEC made a presentation on the topic o f research data networks to the Prime Minister's Science and Engineering Council as part of a theme on broadband services developments The study is due to be completed in August 1994

Matching Science and Technology to Future Needs

ASTEC is exploring the possibility o f a study, using technology foresight techniques, to place Australia's S&T effort in the context of possible social and economic developments up to 2010, and assist policy makers to ensure that benefits are gained from the effective direction of technology towards emerging needs

ASTEC intends to develop a process based on the experience of other countries (particularly Japan, the United Kingdom, the United States, Germany and the Netherlands), tailored to Australia's distinctive requirements

ASTEC views the study as a collaborative exercise, involving science and technology users, providers and policy advisers in both the private and public sectors Information, judgements and analysis will be sought from these sources to identify how well research and technology policy is responsive to longer term social and economic priorities

The study aims to identify the main changes in the socio-economic framework o f Australia From this it would assess the broad needs o f the nation and demands for S&T to 2010 The study would also analyse the directions for science and technology on a global scale and interpret how this could and should impact on Australia's S&T efforts and directions

Assessments could then be made of potential mismatches in the supply o f and demand for science and technology in Australia The study will encourage the collective identification of important themes for future science and technology planning in both the public and private sectors It is hoped that there will be an increased awareness and understanding of the value and methods of future-oriented analysis

The output of the study would be structured as information and advice which can assist government and industry to make better informed decisions on the development and application of science and technology It would need to be in a form which could guide or stimulate a long term vision of the shape of the Commonwealth's support for science and technology, identifying possible areas for change

ASTEC is conscious of the need to build commitment to the aims of the study from government and the S&T community Considerable consultation will therefore be undertaken throughout the study in accord with international best practice

ADDITIONAL PAPERS

Technology and Employment

In December 1993 ASTEC prepared an Issues Paper as an input to the Green Paper on Employment Opportunities The paper noted that all nations depend on continued technological advance to achieve economic growth Sustained economic growth is acknowledged to be the most effective way to maintain or increase employment levels Some of the surplus generated by this growth goes to employ a growing working population, and some goes to develop and acquire improved technologies In addition to its profound influence on economic growth, technology also

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affects the working population directly through its impact on the way work is organised and performed.

Frequently, technological change is seen as a process which displaces jobs. The reason for this is that it is easier to foresee the job losses which accompany labour saving innovations than to predict the labour expanding consequences of the application of product innovations. Predictions of technology related job losses have repeatedly failed to take into account the prospects for increased employment opportunities arising from the cheaper production o f existing products or the diffusion of new products with unanticipated uses or applications, often in different social or economic contexts.

Technological change may eliminate specific jobs, but in overall terms it increases employment. However, its employment impact is not confined to the industry, or even the country, in which it occurs. Hence the dynamics o f change in the structure of the economy and the labour market play a major part in determining the size of the change in employment. Technological change is only one cause among many of unemployment, but it is one of the few sources o f employment creation.

STATE, TERRITORY, AND NEW ZEALAND SCIENCE AND TECHNOLOGY LIAISON

During 1993-94 ASTEC held two meetings with State and Territory agencies responsible for providing science and technology advice to government and the New Zealand counterparts. The meetings have been an opportunity to identify and discuss joint areas o f interest and to provide briefings on recent Commonwealth and State activities and programs.

Both meetings in 1993-94 had a session devoted to a special area of interest. At the November 1993 meeting a full day forum was held focussed on two topics: Australia-New Zealand interactions in science and science-industry linkages and; at the May 1994 meeting a forum on technology and employment was held.

The November meeting was held in Wellington, New Zealand and jointly hosted by the New Zealand Ministry of Research, Science and Technology and the New Zealand Foundation for Research, Science and Technology.

The forum at the meeting took advantage of the New Zealand location for the meeting and included representatives from the New Zealand Government, research organisations and industry. The forum was chaired by Dr Laurie Hammond, New Zealand Foundation for Research, Science and Technology.

Following discussions at the November meeting on the impact of technology on employment, a forum on technology and employment was held at the May 1994 meeting.

The forum was chaired by Professor Ron Johnston who provided an overview of the relationship between technology and employment. It included contributions from: Dr John Buchannan of the Australian Centre for Industrial Relations Research and Teaching; Mr Mark Jackson of Greening Australia; Dr Barry Fox representing the Federation of Australian Science and Technology

Societies and Mr Frank Martinelli of the Association of Professional Engineers and Scientists of Australia.

PRESENTATIONS TO THE PRIME MINISTER'S SCIENCE AND ENGINEERING COUNCIL

ASTEC made two presentations to the November 1993 meeting of the Prime Minister's Science and Engineering Council (PMSEC). 11

The ASTEC study of research and technology in tropical Australia was the major presentation at the meeting. Professor Jim McLeod, convener of the study, formally released the main report and outlined ASTEC recommendations. This was followed by two presentations on two selected issues: health delivery for Aboriginal and Torres Strait Islanders and management for the tropical savanna environment. An ASTEC working group had examined the selected issues in detail and prepared a short document Research and Technology in Tropical Australia. Selected Issues. This document outlined mechanisms for improved health delivery and future management of savanna research. The Prime Minister asked that the selected issues be followed up by PMSEC through ad hoc working groups.

The ASTEC study of Gene Technology was the basis o f another presentation to the meeting. A Working Group, convened by Dr Jim Peacock, provided an overview of opportunities for gene technology. The Coordination Committee on Science and Technology has formed a working group to follow up recommendations o f the Council paper on gene technology.

ASTEC presented an overview o f its study o f research data networks to the June meeting of the Prime Minister's Science and Engineering Council. Professor Ann Henderson-Sellers, convenor of the ASTEC Working Party, made the presentation and identified the major issues and proposed direction o f ASTEC's final report. ASTEC organised a well-received demonstration of the Internet for members of the Council.

At the same meeting, the Chairman provided a brief introduction to the study Matching science and technology to future needs.

PUBLICATIONS DURING 1993-94

Reports

Research and Technology in tropical Australia and their application to the development of the region (1993)

On Target? Review o f the operation o f external earnings targets for CSIRO, ANSTO AND AIMS, (1994)

Draft reports

The Global Connection: Future needs for research and technology in Australia (1994)

Occasional papers

Gene Technology: Issues for Australia, Occasional Paper No 27, (1993)

Energy Research and Technology in Australia, Occasional Paper No 28, (1994)

Other publications

Assessment o f High Bandwidth Applications Demand on Research Data Networks, Consultants report, (1994)

COUNCIL MEMBERSHIP

Professor Michael Birt resigned as Chairman of the Council in September 1993.

Professor Tim McLeod, who was a member o f Council from 19 February 1990 to 31 August 1993,

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and Ms Margaret Jackson, who was a member o f Council from 30 August 1990 to 31 December 1993, completed their terms of membership this year.

The then Minister Assisting the Prime Minister for Science, Senator Chris Schacht, announced the appointment of Dr Don Williams as the new Chairman o f ASTEC on 5 December 1993. Dr Williams has a distinguished record of achievement in both technology development and business management.

Dr Williams was until recently Managing Director and Chief Executive Officer of the Australian Submarine Corporation Pty Ltd.

He is currently Chairman o f the Australian National Railways Commission, Chairman of two Cooperative Research Centres and a member of CSIRO's Manufacturing Advisory Committee. He was recently appointed as Deputy Chairman of the Australian Nuclear Science and Technology Organisation (ANSTO).

Senator Schacht also announced the appointment of four new members o f ASTEC, for terms of two years.

Professor Lawrence Beilin is Professor o f Medicine at the University of Western Australia and Chairman of the Research Grants Committee o f the National Heart Foundation of Australia.

Mr Donald Blesing manages a farming, grazing and ram breeding business in South Australia, and has recently retired as Chairman o f the Grains Research and Development Corporation.

Dr Doreen Clark is Managing Director o f Analchem Bioassay Pty Ltd, a high technology company, and National President o f the Royal Australian Chemical Institute.

Dr Kerry Schott is an Investment Banker, Bankers Trust Australia, and has been a director of Australian Airlines, a member o f the Australian Manufacturing Council and a ministerial consultant on trade matters.

The full membership of the Council at 30 June 1994, with terms of appointment, can be found at Appendix 1.

MEETINGS OF ASTEC

During 1993-94, Council met on eleven occasions. It met every month from July to December in 1993 and it met every month from February to June 1994. The majority o f meetings were held in Canberra but meetings were also held in Melbourne, Brisbane, Adelaide and Sydney.

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C o r p o r a t e m a n a g e m e n t

MANAGEMENT ISSUES

As mentioned earlier in this report, the then Minister Assisting the Prime Minister for Science, Senator Chris Schacht, announced on 24 June 1994 some important changes to the Government's science and technology advisory arrangements. Whilst the Government retained ASTEC as a statutory body providing independent advice on science and technology matters, the ASTEC

secretariat is no longer covered by the ASTEC Act. Once changes to the ASTEC Act came into effect on 15 March 1994 the staff o f the ASTEC secretariat were formally transferred to the Office o f the Chief Scientist within the Department o f the Prime Minister and Cabinet.

Given the new operating arrangements being introduced throughout the 1993-94 year, ASTEC's Management Committee did not meet during the period to 14 March 1994. The Department of the Prime Minister and Cabinet has assumed responsibility for all staff formally transferred to the Department and those staff are now covered by the Department's various staff management

policies and practices

Social Justice and Equity

ASTEC’s activities throughout the year continued to reflect the social justice objectives o f the Government. Whilst ASTEC did not specifically undertake any major role or initiatives in social justice and equity, many of its activities during the year related to the understanding and adoption o f science and technology by industry, government and the wider community. ASTEC continued

to consult widely whilst undertaking studies and was conscious o f taking into account aspects relating to social justice when reporting to government.

As in previous years, ASTEC continued to participate in the Department o f the Prime Minister and Cabinet’s Access and Equity Plan.

Internal and External Scrutiny

The were no evaluations commenced, completed or continued during the year. ASTEC’s charter empowers the Council to operate by conducting inquiries, gathering information, engaging consultants, appointing committees and producing reports. To this end, the following summarises the activities undertaken which have been discussed in detail earlier in this document:

• Research and Technology in Tropical Australia (completed);

• Review of the Operation o f External Earnings Targets for CSIRO, ANSTO and AIMS (completed);

• Gene Technology (completed); and

. Energy Research and Technology in Australia (commenced).

Fraud

As in previous years, ASTEC continued to participate in the Department of the Prime Minister and Cabinet's Fraud Control Plan. The Prime Minister's Portfolio - Fraud Risk Assessment Report 1993-1995 was revised during 1993. The revised report was approved by the Minister and evaluated by the Office of Federal Justice o f the Attorney-General's Department. The overall risk level for ASTEC was assessed as minimal.

The Department of the Prime Minister and Cabinet is currently reviewing its fraud control procedures as a result of the recommendations of the recent House o f Representatives Standing 14

Committee Report Focusing on Fraud. As o f 15 March 1994 ASTEC has been covered by the Department of the Prime Minister and Cabinet’s policies relating to fraud control.

No cases of fraud were referred by ASTEC to the Australian Federal Police during 1993-94, nor were there any internal investigations conducted.

AN AO Reports

Report No. 27, Report on Ministerial Portfolios, by the Australian National Audit Office (ANAO) noted that the audit report on ASTEC's financial statement was unqualified and the audit of the accounts and records was satisfactory.

Industrial Democracy

As mentioned earlier in this section, ASTEC’s Management Committee, which took an active role in promoting and contributing to ASTEC's commitment to industrial democracy, did not meet during the period 1 July 1993 to 14 March 1994. However, in line with ASTEC’s Industrial Democracy (ID) Plan, there continued to be a commitment to ID practices through consultations

with staff on a range o f issues and promotion of participative work practices.

The ASTEC secretariat is now covered by the Department o f the Prime Minister and Cabinet's Industrial Democracy (ID) Plan 1993-1997.

Equal Employment Opportunity

Until the formal transfer of ASTEC staff to the Department o f the Prime Minister and Cabinet on 15 March 1994, ASTEC's EEO program continued to be implemented throughout the year. ASTEC's EEO program for 1993-96 was endorsed by the Public Service Commissioner on 15 October 1993. As the program was only in place for a relatively short time it was not possible to measure the achievements of the new program. The ASTEC secretariat is now covered by the Department of the Prime Minister and Cabinet's 1993-96 Equal Employment Opportunity (EEO) Plan.

Appendix 3 provides details of the representation of EEO groups in the Office of ASTEC as at 14 March 1994.

Occupational Health and Safety

ASTEC continued to use the Department o f the Prime Minister and Cabinet's Occupational Health and Safety Agreement until the formal transfer o f staff to that Department. No incidences of occupational accidents were reported during the period 1 July 1993 to 14 March 1994.

The ASTEC secretariat is now covered by the Department of the Prime Minister and Cabinet's OH&S Agreement.

Performance Pay, Training and Use of Consultants

Performance Pay

1993-94 was the second year in which ASTEC's performance appraisal scheme for Senior Officers operated. With the announcement that ASTEC was to operate under new arrangements, the second appraisal cycle for Senior Officers was varied with the introduction of two link cycles to cover the periods 1 July to 31 December 1993 (six months) and 1 January to 31 August 1994 (eight months). This variation from the guidelines was supported by the then Public Sector Union and was necessary to facilitate the alignment o f ASTEC's appraisal cycle with that of the

15

Department o f the Prime Minister and Cabinet's. ASTEC staff were thus integrated into the department's scheme with the next appraisal cycle commencing 1 September 1994 and concluding 31 August 1995.

The appraisal cycle for ASTEC's Senior Executive Service Officers was for the period July 1992 to June 1993.

Eight officers, including both Senior Executive Service and Senior Officers, were eligible to receive performance pay and a total o f $17,447 was paid.

Training

For the period to 14 March 1994, ASTEC's salary expenditure for calculating the Training Levy under the Training Guarantee (Administration) Act 1990 was $652,973 resulting in a minimum training requirement o f $9,795. Net eligible training expenditure was $10,754.

The total number of staff, excluding paid and unpaid inoperative staff and unattached officers, in ASTEC on 14 March was twelve. The total number o f person days spent by staff participating in eligible training programs during the year was 65 of which seven were women.

Categories o f eligible training programs attended by staff included: information technology and financial management.

Consultancies

A total of three consultants were engaged by ASTEC from 1 July 1994 to 14 March 1994 at a total cost of $19,812. All consultants were selected because o f relevant expertise and because the specialist knowledge or resources essential to the performance o f the task was not available within ASTEC.

Details of consultants engaged and paid during the period 1 July to 14 March 1994 are provided at Appendix 4.

Those consultants who were engaged before or after 14 March 1994 but not paid until after 14 March 1994 will be reported in the Department of the Prime Minister and Cabinet's 1993-94 Annual Report.

FINANCIAL MANAGEMENT

ASTEC's total Running Costs appropriation in 1993-94 was $1,842,000 through Appropriation Act No. 1. Net receipts totalling $1,731 were collected through ASTEC's Section 35 Account but were not appropriated. Total expenditure in 1993-94 was $1,229,458.

ASTEC's Financial Statements, which appear at Appendix 7, were prepared in accordance with the disclosure requirements o f the Financial Statement Guidelines for Departmental Secretaries (Modified Cash Reporting) issued in January 1994. As ASTEC ceased to be a "prescribed authority" from 15 March 1994, Section 50 o f the Audit Act, which compels Secretaries of departments to prepare financial statements, no longer applies to ASTEC. From 15 March 1994, the Secretary of the Department o f the Prime Minister and Cabinet is responsible for the financial management and control functions o f ASTEC and ASTEC's financial data will be incorporated in the Department's annual report.

Payment of Accounts

It is Commonwealth policy to pay accounts on the due date. The due date is the date specified in the agreement with the supplier. Unless otherwise agreed with the supplier, the Commonwealth's

16

standard terms are payment 30 days from acceptance of goods and services and the receipt of a correctly rendered invoice.

As at 14 March 1994, an amount of $30,926 was owed to trade creditors. There were no amounts overdue.

With the announcement on 24 June 1993 that ASTEC was to operate under new arrangements, action to acquire a new FMIS was terminated. On 1 July 1993, ASTEC was allowed access to the Department o f the Prime Minister and Cabinet's Government Accounting Management Estimates System (GAMES) for the payment o f accounts.

ASTEC's performance in processing accounts during 1993-94 is set out below.

Accounts Received and Processed

Number o f accounts received:

Number o f accounts processed so that payment is received prior to due date:

Number o f accounts processed for payment on the due date (or 2 days prior):

Number o f accounts processed for payment within 30 days after the due date:

Number o f accounts processed for payment later than 30 days after the due date:

Number of cancelled claims:_________________________________________

Source: Department o f the Prime Minister and Cabinet - GAMES System.

NB: The above statistical data includes some accounts that were paid after 14 March. Those accounts were deemed to relate directly to ASTEC's operations as a "prescribed authority".

Property Usage

The Office o f ASTEC occupied leased office accommodation in the AMA Building, 42 Macquarie Street, Barton. The total office area occupied by ASTEC was 546.8m2 at $322.50 per m2 and three car parking bays at $1,800 per annum.

Whilst the ASTEC secretariat was formally transferred to the Department of the Prime Minister and Cabinet on 15 March 1994, the leased premises in the AMA Building were not vacated until 10 June 1994. As at 14 March 1994 an estimated amount o f $70,223 relating to the operating lease on the AMA Building remained unperformed for the period 15 March 1994 to 30 June 1994. The residual operating lease liability was transferred to the Department of the Prime Minister and Cabinet.

Claims and Losses

ASTEC had no claims or losses which individually resulted in net costs to the Commonwealth.

328

148

110

43

24

3

17

Purchasing

As at 14 March 1994, 15 items with a value above $2,000 were notified in the Commonwealth (Purchase and Disposal) Gazette.

Information Technology Purchasing Arrangements

ASTEC's Information Technology (IT) Committee was responsible for reviewing and assessing IT requirements and purchases. There were no IT acquisitions during the period to 14 March 1994 only IT maintenance and purchase o f IT consumables.

Advertising and Market Surveys

Appendix 6 details expenditure required to be reported under the Commonwealth Electoral Act as amended 1991.

Energy

As in previous years, ASTEC continued to consider energy saving measures but with the impending changes to ASTEC's operations, work on developing an energy management plan ceased. With the ASTEC secretariat's relocation to 3-5 National Circuit in Barton energy usage and management issues are the responsibility of the Department o f the Prime Minister and Cabinet.

To the period ending 14 March 1994, ASTEC's principal energy consuming assets were the office building services and vehicles.

Total energy consumption for the period 1 July 1993 to 14 March 1994 is detailed in the following table.

Energy Consumption

Electricity Fuel

(kW h) (Litres)

AMA Building 41,761 -

Vehicles - 3,713

Self drive private plated Commonwealth vehicles were leased from the Department o f the Arts and Administrative Services by ASTEC for the period ending 14 March 1994. ASTEC maintained an average o f two private plated vehicles during the reporting period. Lease arrangements did not include fuel.

Environmental Matters

ASTEC continued to have a sensible approach to environmental matter by recycling unclassified and classified paper waste, utilising recycled stationery products and conserving fuel and electricity. With the ASTEC/Office o f the Chief Scientist merger, ASTEC will adopt the policies of the Department of the Prime Minister and Cabinet on environmental matters.

Freedom of Information

There were no requests received under the Freedom o f Information Act 1982 during 1993-94.

Applicants seeking access under the FOI Act to documents in the possession the ASTEC Branch

18

in the Department of the Prime Minister and Cabinet should forward a $30 application fee and apply in writing to:

The Secretary Department o f the Prime Minister and Cabinet 3-5 National Circuit BARTON ACT 2600 Attention: FOI Coordinator

The FOI Coordinator is available at the above address or by telephone, (06) 271 5534 between 9.00 am and 5.00 pm Monday to Friday.

Privacy

No reports or determinations under the Privacy Act 1988 were served on ASTEC by the Privacy Commissioner in 1993-94.

ASTEC ceased to maintain documentation relating to the employment o f staff when staff were transferred to Department o f the Prime Minister and Cabinet.

Relevant documentation maintained previously by ASTEC has now been incorporated into records held by the Department of the Prime Minister and Cabinet and it is the Department that now has formal responsibility for such records and for privacy issues.

Information and Library Services

ASTEC continued to be a very active user o f information and library services which are provided by the Department o f the Prime Minister and Cabinet.

Staffing

At the end o f the reporting period, ASTEC was supported by a secretariat, the OffieeofASTEC, of twelve o f which one was a temporary officer on contract. The organisation chart as at 14 March 1994 for the Office of ASTEC is at Appendix 5.

19

G l o s s a r y o f a c r o n y m s

AARNet Australian Academic and Research Network

AIMS Australian Institute of Marine Science

ANAO Australian National Audit Office

ANSTO Australian Nuclear Science and Technology Organisation

APS Australian Public Service

ASTEC Australian Science and Technology Council

CCST Coordination Committee on Science and Technology

CRC Cooperative Research Centre

CSIRO Commonwealth Scientific Industrial Research Organisation

EEO Equal Employment Opportunity

FMIS Financial Management Information System

GAMES Government Accounting Management Estimates System

ID. Industrial Democracy

IT. Information Technology

OCS Office of the Chief Scientist

OH&S Occupational Health and Safety

PMSEC Prime Minister's Science and Engineering Council

R&D Research and Development

RD&D Research, Development and Demonstration

S&T Science and Technology

20

Co m p l i a n c e i n d e x

I

Letter o f Transmission iii

Aids to Access

Table o f Contents iv

Glossary 20

Index 52

Contact Officr V

Objectives 2

Social Justice and Equity 14

Internal and External Scrutiny 14

Industrial Democracy 15

Equal Employment Opportunity 15,28

Occupational Health and Safety ^ 15

Freedom o f Information 18

Advertising and Market Research 18,31

Staffing 19,30

Performance Pay 15

Training 16

Consultancies 16,29

Financial Statements 32

21

a ppen d ix

m e m b e r s o f a s t e c

Dr Don Williams (Chairperson) Commenced: 15 December 1993 Expiry date: 14 December 1996

Mr Peter Laver (Deputy Chairperson) Commenced: 30 June 1989 Expiry date: 24 July 1994

Professor Lawrence Beilin Commenced: 15 December 1993 Expiry date: 14 December 1995

Mr Donald Blesing Commenced: 15 December 1993 Expiry date: 14 December 1995

Dr Doreen Clark Commenced: 15 December 1993 Expiry date: 14 December 1995

Dr Gregory J Clark Commenced: 28 February 1990 Expiry date: 27 February 1996

Professor Ann Henderson-Sellers Commenced: 28 February 1990 Expiry date: 27 February 1996

Professor R Johnston Commenced: 28 February 1989 Expiry date: 27 February 1995

Professor Don Nicklin Commenced: 28 February 1989 Expiry date. 27 February 1995

Dr W J Peacock Commenced: 25 July 1991 Expiry date: 24 July 1994

Professor Michael Pitman Commenced: 13 July 1993 Expiry date: 23 April 1995

Dr Kerry Schott Commenced: 15 December 1993 Expiry date: 14 December 1995

Mr John D Vines Commenced: 25 July 1991 Expiry date: 24 July 1994

22

Appen d ix 2

PUBLICATIONS OF ASTEC 1977 - 1994

REPORTS

1977

Future Arrangements for the Australian Science and Technology Council Energy Research and Development in Australia Report of the Interim ASTEC for the period 29 April 1976 to 29 March 1977

1978

Science and Technology in Australia 1977-78, Volume 1A The Bureau o f Mineral Resources, Geology and Geophysics Supplement to the Report on the Bureau o f Mineral Resources

Science and Technology in Australian 1977-78, Volume 2 The Direct Funding o f Basic Research Report of ASTEC for the period 30 March 1977 to 30 June 1978

1979

Science and Technology in Australia 1977-78, Volume IB Science and Technology in Australia - Summary and Recommendations The Next Generation o f Australian Telescopes Marine Sciences and Technologies in Australia - Immediate Issues Report for the Period 1 July 1978 to 30 June 1979

1980

Marine Sciences and Technologies in Australia - Priorities for Additional Research and Development 1980-81 Interaction Between Industry, High Education and Government Laboratories Annual Report 1979-80 Industrial Research and Development: Proposals for Additional Incentives

1981

Basic Research and National Objectives Towards a Marine Sciences and Technologies Program for the 1980s Australia: Characteristics Relevant to Science and Technology Annual Report 1980-81 Microelectronics Medical Research in Australia, Parts 1 and 2

1982

Office of the Supervising Scientist Earth Resources Satellites: Australian Facilities New Telescopes for Australian Astronomy in the 1980s Australian Science and Technology in International Co-operation and Development Assistance Robots Annual Report 1981-82

23

Biotechnology in Australia Biotechnology in Australia - Supplementary Report The Australian National Animal Health Laboratory - The Use of Live Exotic Animal Pathogens

1983

Technological Change and Employment Incentives for Innovation in Australian Industry Videotext in Australia - Interactive Information Services Annual Report 1982-83 Operation o f National Research Granting Schemes

1984

Guidelines for the Operation o f National Research Facilities Technology and Handicapped People Australia's Role in the Nuclear Fuel Cycle Australia's Broad-Spectrum Bilateral Science and Technology Agreements Government Purchasing and Offsets Policies in Industrial Innovation Annual Report 1983-84

1985

Computer-Related Technologies in the Metal Trades Industry Annual Report 1984-85 Nuclear Science and Technology in Australia Public Investment in Research and Development in Australia Future Directions for CSIRO Telecommunications Research and Development

1986

New Office Technology: Review and Discussion Mechanisms for Technology Transfer into Australia Towards a Cashless Society? New Office Technology, The Report Annual Report 1985-86 The Defence Science and Technology Organisation and National Objectives

1987

Improving the Research Performance of Australia's Universities and Other Higher Education Institutions After the Harvest: Opportunities and Technologies in Horticulture Computerised Assistants: New Tools for Society Annual Report 1986-87 Improving Australia's Competitiveness through Industrial Research and Development Education and National Needs Wealth from Skills: Measures to Raise the Skills of the Workforce Wealth from Skills: Measures to Raise the Skills o f the Workforce - Appendix

1988

Casting the Net: Post-Harvest Technologies and Opportunities in the Fishing Industry Annual Report 1987/88

24

1989 i

Health Politics Trade: Controlling Chemical Residues in Agricultural Products The Core Capacity o f Australian Science Profile of Australian Science The Future o f Australian Astronomy Annual Report 1988-89

1990

Science, Technology and Australia's Future Small Country - Big Science Environmental Research in Australia: A Review Setting Directions for Australian Research

Government Funding o f Academic and Related Research Annual Report 1989-90 Environmental Research in Australia: The Issues

1991

An Australian International Gravitational Observatory Research and Technology: Future Directions Annual Report 1990-91

1992

Major National Research Facilities: A National Program Annual Report 1991-92

1993

Bridging The Gap: The Social Sciences, Humanities, Science and Technology in Economic Development

1994 (till June 1994)

Research and Technology in tropical Australia

DRAFT REPORTS

1993

Research and Technology in Tropical Australia: Draft Report

1994 (till June 1994)

The Global Connection: future needs for research data networks in Australia

OCCASIONAL PAPERS

1988

1 Key Technologies and their Role in Economic Development of Small Countries 2 Superconductivity 3 After the Myers Report: Improving the Management of Technological Change 4 Government Purchasing Policy and Industrial Innovation

25

1989

5 The Contribution of Science and Technology to Australia's Balance o f Payments to the Year 2000 - Service Sector 6 Comments on the ASTEC Review of CSIRO 7 The Contribution of Science and Technology to Australia's Balance o f Payments to the

Year 2000 - Manufacturing Sector 8 The Contribution of Science and Technology to Australia's Balance o f Payments to the Year 2000 - Private Sector 9 Public Policies for the Exploitable Areas of Science': A comparison of the United Kingdom,

Japan, the Netherlands, and Sweden

1990

10 Report on Overseas Study Tour of Science and Technology, Policies in Selected Small Countries (Netherlands, Norway, Sweden and Finland) 11 Decision Making and Evaluation in Publicly-Funded Science and Technology 12 The Interaction Between National and International Programs in Science and

Technology, With Particular Reference to Europe 13 Education For Change: The Role o f Engineering in Australia in a Changing World Economy

1991

14 Funding the Fabric: Should Commonwealth Government Competitive Research Granting Schemes Contribute more to Research Infrastructure Costs? 15 The Assessment of Impacts of Climate Change by Working Group 2 o f the Intergovernmental Panel on Climate Change 16 The Demand and Supply o f Scientists and Engineers in Australia 17 Seminar Proceedings: Setting Directions For Australian Research October 1990 18 Science, Technology and Australian Federalism: Getting the Best from the System 19 Major National Research Facilities: Expressions o f Interest

1992

20 Research Data in Australia. Proceedings of a Workshop held on 14 November 1991 21 Research and Technology: Perspectives on Industry 22 Submission by ASTEC to the ASTEC Review Committee 23 Research and Technology in Tropical Australia - Symposia 24 Research and Technology in Tropical Australia - Survey 25 Indonesia and Australia, Science and Technology Linkages - Case Studies of Remote

Sensing, Telecommunications and Biotechnology

1993

26 Small Things-Big Returns: The Role of Nanotechnology in Australia's Future 27 Gene Technology: Issues for Australia

1994 (till June 1994)

28 Energy research and technology in Australia

ADDITIONAL PUBLICATIONS

1979

Industrial Innovation - A Discussion Paper

26

1987

The Advanced Facility at the National Acoustic Laboratories

1989

Controlling the Genie, The Human-Computer Interface: Issues and Opportunities, A Discussion Paper

1990

Profile of Australian Science Forum Proceedings Your Word Is My Command Policy Choices in Industry and Technology - Joint Symposium with PCEK and AMC Environmental Research in Australia: Compendium

Corporate Plan 1990-1992 National Purposes, Federal Government

1991

Environmental Research in Australia. Case Studies Research and Technology: Future Directions. Summary Report

1992

Review of ASTEC: An Evaluation of the Australian Science and Technology Council Nanotechnology and Australia's Future

1993

Research and Technology in tropical Australia

27

A p p e n d ix 3

REPRESENTATION OF EEO GROUPS WITHIN SALARY GROUPS AT

14 MARCH 1994

Non English Non English Non English Aboriginal People Staff with

Total Staff Women Speaking Speaking Speaking and Torres with a EEO Data

Salary Range Background Background Background Strait Disability

1st 2nd (Total) Islanders

Generation Generation

Below $23748 1 1 0 0 0 0 0 1

(inc. ASO 1)

100% 100%

$23749 - 3 3 0 0 0 0 0 2

$2696 (inc. ASO 2) 100%

66.6% '

$26968 - 3 2 0 0 0 0 0 2

$29894 (inc. ASO 3) 66.6%

66.6% --------------- - ■

$29895 - $33519 (inc. ASO 4)

0 0 0 0 0 0

0 0

$33520 - 1 1 0 0 0 0 0

1

$36511 (inc. ASO 5) 100%

100%

$36512- $42719 (inc. ASO 6)

0 0 0 0 0

0 0 0

$42720 - 5 2 0 1 1 0

0 5

47814 (inc. SOG C) 40% 20%> 20%

1 0 0 %

$47815- $62063 (inc. SO G B )

2 1

50%

0 0 0 0 0

2 *

1 0 0 %

Above $62064 2 1 0 1 1 0

0 2

(inc. SEB1A)

50% 50% 50%

100% >

TOTAL 17 11 0 2 2

0 0 15 M

64.7% 13.3% 13.3% M M .

Source:

* Based on actual occupancy, including paid and unpaid inoperative staff, unattached officers

and temporary staff. , , .

** Percentages for women and staff with EEO data are based on the total number of staff. Percentages for other groups are based on staff for whom EEO data was available.

28

APPENDIX 4

CONSULTANTS ENGAGED AND PAID AT 14 MARCH 1994

Consultant Cost Purpose

Paul Jones & Associates $625 To prepare for a workshop on issues arising

from the changes to the ASTEC Act and administrative orders.

Dr J Stewart $1, 060 To finalise the Occasional Paper on gene

technology.

Dr Noel Sullivan $18,127 For an examination of the relationships

between small and medium business and science agencies for ASTEC's external earnings study.

Total $19,812

29

a p p e n d ix 5

O r g a n i s a t i o n C h a r t a t 14 m a r c h 1994

Secretary C. Astley-Boden

Assistant Secretary SEB 1 M. Wardrop

SOGB P. Berman (A/g)

J. Madden

SOGC P. Cook

D. Mylan (A/g) L. Thomson

AS0 5 B. Anderson

ASO 3 K. Brennan

S. O'Neil

ASO 2 J. Elliott (Temp)

E. Quilter

30

Appendix 6

ADVERTISING AND MARKET RESEARCH

Category Payee and Amount Purpose

Media Advertising Directory

$345

Inclusion in Australian Business and Fax Directory.

Media Advertising Mirror Australian Telegraph

Publications $356

Advertise symposium for Social Sciences and Humanities study.

Media Advertising AAP Information Services

$44

Advertise release of Genetech study.

Media Advertising Neville Jeffress Advertising

$12,565

Advertise call for submissions to Research Data Networks and External Earnings studies.

Direct Mailing Koomarri Printers

$1,006

Packaging and distribution of a range of publications.

Total $14,316

31

a p p e n d ix 7

FINANCIAL STATEMENT

FINANCIAL STATEMENT For the period 1 July 1993 - 14 March 1994

CONTENTS

Financial Statement

Certification of the Financial Statement Aggregate Statement of Transactions by Fund Detailed Statement o f Transactions by Fund Program Statement

Statement of Supplementary Financial Information Notes to the Financial Statement Glossary of Terms

Audit Report

. Audit Report

32

STATEMENT BY THE DEPARTMENTAL SECRETARY

AND

PRINCIPAL ACCOUNTING OFFICER

CERTIFICATION

We certify that, in our opinion, the attached financial statement for the period 1 July 1993 - 14 March 1994 is in agreement with the Australian Science and Technology Council's (ASTEC) accounts and records, and the financial statement has been prepared in accordance with the disclosure requirements of the Financial Statement Guidelines for Departmental Secretaries (Modified Cash Reporting) issued in January 1994.

On 15 March 1994 amendments to the ASTEC Act 1978 received Royal Assent. Prior to the amendments, ASTEC was a "prescribed authority" under the Audit Act 1901, meaning that the regulatory framework of the Audit Act, Finance Regulations and Finance Directions applied to ASTEC as if it were a separate department. It had resources allocated direct, in Program 6.1 of

the Prime Minister and Cabinet Portfolio. Prior to 15 March 1994, the Act provided for a "prescribed officer" (ie a person who had all the powers of a Secretary under the Public Service Act 1922), who would be either a full-time Chair or the Secretary of ASTEC (ie the most senior public servant working for ASTEC). The amendments which came into effect in March

1994 remove the reference to the "prescribed officer" so there is no longer a person within ASTEC itself who has the powers of a Secretary. This means that ASTEC is no longer treated as a "prescribed authority" and therefore a separate entity under the Audit Act and related legislation. Financial reporting as required by Section 50 of the Audit Act which compels Secretaries of departments to prepare financial statements no longer applies to ASTEC. The secretariat support will be provided to ASTEC by the Department of the Prime Minister and

Cabinet. From 15 March 1994, therefore, ASTEC no longer separately reports on its financial operations, as the Secretary of the Department of the Prime Minister and Cabinet is responsible for the financial management and control functions for ASTEC. The resources required to support the Council are now provided through the Department as part of Sub Program 3.3 Science and Technology Policy, in the Portfolio. From 15 March 1994 ASTEC's audited financial data will be incorporated in the Department's annual report.

Signed

C. Astley-Boden First Assistant Secretary Office of the Chief Scientist

M. Wardrop Assistant Secretary ASTEC Branch

Dated: V- J f ( ^

33

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL AGGREGATE STATEMENT OF TRANSACTIONS BY FUND FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

This Statement shows aggregate cash transactions, for which the Australian Science and Technology Council was responsible, for the Consolidated Revenue Fund, a component o f the Commonwealth Public Account (CPA).

1/7/93-

1992-93 1993-94 14/3/94

ACTUAL BUDGET ACTUAL

$ $ $

CONSOLIDATED REVENUE FUND (CRF)

18 977 Total Receipts 31 000 1 731

1 961 340 Expenditure from Annual Appropriations (see Note 1(d)) 1 842 000 1 229 458

1 961 340 Total Expenditure 1 842 000 1 229 458

The Australian Science and Technology Council was not responsible fo r Special Appropriations, or transactions on the Loan Fund or the Trust Fund.

34

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL DETAILED STATEMENT OF TRANSACTIONS BY FUND FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

This Statement shows details o f cash transactions, for which the Australian Science and Technology Council was responsible, for the Consolidated Revenue Fund. ASTEC was not responsible for any transactions of the Loan Fund or the Trust Fund.

CONSOLIDATED REVENUE FUND 1CRF1

RECEIPTS TO THE CRF

The CRF is the main working fund of the Commonwealth and consists of all current moneys received by the Commonwealth (excluding loan raisings and moneys received by the Trust Fund). The Council was responsible for the following receipt items:

1992-93 SUB 1993-94

1/7/93­ 14/3/94

ACTUAL PROGRAM BUDGET ACTUAL

$ $ $

18 960 Section 35 o f the 6.1

Audit Act 1901, to be credited to Running Costs (see Notes 2 and 3)

30 000 1731

37 Miscellaneous Receipts 1 000 Nil

18 997 TOTAL RECEIPTS TO CRF 31 000 1 731

35

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL DETAILED STATEMENT OF TRANSACTIONS BY FUND FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

EXPENDITURE FROM CRF

The Constitution requires that an appropriation o f moneys by the Parliament is required before any expenditure can be made from the CRF. Appropriations follow two forms:

• special (or standing) appropriations; and • annual appropriations.

ASTEC was responsible for the following expenditure items:

1992-93 ACTUAL $

1/7/93­

1993-94 14/3/94

APPROPRIATION ACTUAL $ $

Annual Appropriations

(Appropriation Act No 1 (see Note 1(d)) 1 842 000 ) 1 961 340 ( )

(Appropriation Act No 5 Nil ) 1 229 458

(Annotated Appropriations Nil )

(pursuant to Section 35 )

(of the Audit Act 1901 )

1 961 340 Total Expenditure from 1 842 000 1 229 458

Annual Appropriations

1 961 340 TOTAL EXPENDITURE 1 842 000 1 229 458

FROM CRF

36

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL DETAILED STATEMENT OF TRANSACTIONS BY FUND FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

1992-93 ACTUAL $

1/7/93-

SUB- 1993-94 14/3/94

PROGRAM APPROPRIATION ACTUAL $ $

APPROPRIATION ACT NO 1

Division 501. - Australian Science and Technology Council

1 961 340 1. - Running Costs 6.1

(Annotated Appropriation see Notes 1(d), 2 and 3)

1 842 000 1 229 458

Total Expenditure from

1 961 340 Annual Appropriations 1 842 000 1 229 458

37

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL PROGRAM STATEMENT FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

This Statement shows details o f expenditure from annual appropriations for the sub-program administered by the Council. Each annual appropriation item contributing to the sub-program is identified by its description followed by its appropriation code in brackets. This statement also shows details o f revenue for the sub-program. Appropriations are through the Prime Minister and

Cabinet portfolio, Program 6: Portfolio Policy Advising Agencies, Sub-program 1 - Australian Science and Technology Council.

1992-93 ACTUAL S'000

1993-94 BUDGET $'000

1/7/93­ 14/3/94 ACTUAL $'000

6 6.1

Portfolio Policy Advising Agencies Australian Science and Technology Council

1 074

Running Costs (501.1) Salaries 1055 826

680

Administrative Expenses 570 263

207 Property Operating Expenses 217 140

N/A Section 35 Receipts 30 N/A

1 961 Expenditure from Appropriations 1872 1229

Less : Receipts offset within Outlays

19 Section 35 of the Audit Act 1901 -

to be credited to Running costs

30 2

Nil Miscellaneous Receipts 1 Nil

1 942 Outlays 1 841 1 227

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AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL STATEMENT OF SUPPLEMENTARY FINANCIAL INFORMATION AS AT 14 MARCH 1994

1992-93 $'000

NOTE

1/7/93­ 14/3/94 $'000

1

CURRENT ASSETS

Cash 4 1

17 Prepayment 5 nil

135

NON-CURRENT ASSETS

Property, Plant and Equipment 6 100

7

CURRENT LIABILITIES

Creditors 7 31

N/A Provisions 8 58

N/A

NON-CURRENT LIABILITIES

Provisions 8 116

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AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 JULY 1993 TO 14 MARCH 1994

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) The financial statements have been prepared in accordance with the Financial Statement Guidelines fo r Departmental Secretaries (Modified Cash Reporting) issued in January 1994 by the Minister for Finance.

(b) The financial statements have been prepared on a cash basis with the exception of the Statement o f Supplementary Financial Information which includes certain accrual-type information.

(c) Amounts shown in the Aggregate Statement of Transactions by Fund and the Detailed Statement o f Transactions by Fund have been rounded to the nearest $1; other amounts have been rounded up if the three end digits are greater than 500, or down if the three end digits are less than 500. If the three end digits equal 500 then the amount is rounded up or down to an even figure. All totals are rounded additions of unrounded figures.

(d) As discussed in the certification at the front o f this financial statement on 15 March 1994 an amendment to the ASTEC Act 1978 resulted in the secretariat support being provided to ASTEC by the Department o f the Prime Minister and Cabinet (PM&C). At the time of the Additional Estimates the estimated balance o f financial resources of $411,000 as at the date o f the enactment o f the changes together with the ASTEC assets and liabilities were transferred to PM&C. The Budget allocations detailed in these statements are Budget Appropriation as detailed in Budget Paper No. 2 1993-94. PM&C has assumed reporting responsibility post 14 March for ASTEC's financial operations and position in accordance with the Section 50 of the Audit Act 1901. Therefore this financial statement reports for the period 1 July 1993 - 14 March 1994 with the Department reporting for the balance of the 1993-94 financial year. In future ASTEC's financial operations and position will be incorporated into the PM&C annual report.

(e) As part o f the transfer o f resources to PM&C assets with a written down value totalling $100,280 have been transferred with effect 15 March 1994. Assets values are based on historical cost less depreciation. Assets include all items that have an original value equal to or greater than $2,000. As required by paragraph 3.6.42 of the Financial Statement

Guidelines depreciation has been reported for the first time. The calculation of depreciation is in accordance with the ASTEC Secretary's Instruction Chapter 19 - Assets Management using the following per annum (straight line method used) rates of depreciation - Computing Equipment including Software 25%; Office Equipment 20 %; Furniture and Fittings 20%.

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(f) A liability for annual and long service leave is recognised in the balance of Provisions in the Statement o f Supplementary Financial Information. Long service leave is recognised up to the reporting date on a pro rata basis in respect of employees with in excess of five years' service.

(g) Foreign currency transactions which have occurred during the year have been converted at the rate o f exchange prevailing at the date o f each transaction.

NOTE 2 RUNNING COSTS (Annotated Appropriations)

The following 1993-94 Appropriations were annotated pursuant to section 35 of th& Audit A ct 1901 to allow the crediting o f certain receipts.

The arrangements relating to the annotation o f the appropriation include the crediting o f receipts received from the following:

. contributions from officers towards the provision o f motor vehicles;

. reimbursement o f officer liability for semi official telephones;

. sale o f surplus or under performing personal (ie non real estate) assets;

. contributions from participants towards the cost of conducting conferences; and

. FOI charges.

Net Receipts Appropriation Expenditure

Appropriations (see Note 1(d))

$1,430,000 $1,731* $1,430,000 $1,229,458

* These receipts were not appropriated.

NOTE 3 RECEIPTS

The receipt figures in the Detailed Statement of Transactions by Fund represent net amounts o f the following:

Description Gross Refund Net Balance

Section 35 $1,851 $120 $1,731

Misc. Receipts nil nil nil

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NOTE 4 CASH

NOTE 5

NOTE 6

NOTE 7

ASTEC held a petty cash advance o f $500 as at 14 March 1994 (1992-93 $500).

No investments or Trust Fund balances are applicable.

PREPAYMENTS

1/7/93 -

1992-93 14/3/94

$'000 $'000

16,648 Administrative Expenses Nil

PROPERTY PLANT AND EQUIPMENT

In accordance with paragraph 3.6.39 o f the Financial Statement Guidelines the accumulated effect o f depreciation on the asset value has been reflected. The calculation of depreciation has been in accordance with the ASTEC Secretary's Instruction Chapter 19 - Asset Management, see Note 1(e). For the 1993-94 Financial Statement the Council is required to disclose depreciation on its Property, Plant and Equipment for the first time. For comparative purposes the 1992-93 figure reported in that statement has been adjusted to take account o f depreciation to 30 June 1993.

1992-93 $'000 Gross Accum Net Value Depn Value

1993-94 $'000

Gross Depreciation Net Value Charge Value

150 62 88 Computer Equipment# 163 96 66

54* 29 25 Office Equipment 54 37 17

35* 13 22 Furniture and fittings 35 18 17

239 104 135 252 151 100

# Computer software o f $12,340 was not previously reported and has been included this year for the first time.

Items were transferred between categories.

CREDITORS

As at 14 March 1994 an amount o f $30,926 was owed to trade creditors. There were no amounts overdue.

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NOTE 8 PROVISIONS

NOTE 9

NOTE 10

NOTE 11

NOTE 12

The provision for employee entitlements being recreation leave and associated bonus and long service leave totalling $173,857 has been reported this financial year for the first time in accordance with paragraph 3.6.54 of Financial Statement Guidelines. Current Provision - Recreation leave and bonuses totalling $58,053 and Non Current Provision - Long Service Provision $115,804.

COMMITMENTS

As at 14 March 1994 there were no outstanding commitments.

CONTRACTED EXPENDITURE

15/3/94 -

1992-93 30/6/94

$'000 $’000

1 70

As at 14 March 1994 an estimated amount of $70,223 being the operating lease on the AMA Building remained unperformed for the period 15 March 1994 to 30 June 1994. The residual operating lease liability of $327,246 was transferred to PM&C (see Note 1(d)) and represents:

< 1 year 1 - 2 years

Property Operating Expenses $189,000 $138,246

UNACQUITTED ADVANCES

There was one unacquitted advance of $550.16 as at 14 March 1994. The advance was overdue for more than 60 days.

ACT OF GRACE PAYMENTS

No payments had been made as at 14 March 1994 pursuant to authorisation given under section 34 A o f the Audit Act 1901.

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NOTE 13 WAIVER OF RIGHTS TO PAYMENTS OF MONEYS

No payments had been waived as at 14 March 1994 under subsection 70C(2) of the Audit Act 1901.

NOTE 14 AMOUNTS WRITTEN OFF

No amounts had been written off as at 14 March 1994 under subsection 70C(1) of the Audit Act 1901.

NOTE 15 LOSSES AND DEFICIENCIES ETC IN PUBLIC MONEY AND OTHER PROPERTY

No action had been taken as at 14 March 1994 under Part XIIA of the Audit Act 1901.

NOTE 16 CONTINGENT LIABILITIES

The Australian Science and Technology Council had no contingent liabilities as at 14 March 1994.

NOTE 17 GUARANTEES AND UNDERTAKINGS

The Australian Science and Technology Council had no guarantees or undertakings as at 14 March 1994.

NOTE 18 RESOURCES RECEIVED FREE OF CHARGE

Up until 14 March 1994, a number o f services were provided to the Australian Science and Technology Council without charge. The major services received include the following.

Department of the Prime Minister and Cabinet

Salary and personnel services.*

Registry and some office services. *

Department of Finance

The provision o f accounting and budgetary services in the form o f computerised Finance Ledger and payroll services *

* Unable to quantify.

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GLOSSARY OF TERMS

ACT OF GRACE PAYMENTS

Section 34A of the Audit Act 1901 provides that, in special circumstances, the Commonwealth may pay an amount to a person notwithstanding that the Commonwealth is not under any legal liability to do so.

ADMINISTRATIVE EXPENSES

Includes not just expenditure on office-based activities but all operational expenditure (excepting salaries). The item includes both direct costs and overhead expenditure: it includes inter alia, minor capital expenditure (ie items less than $250,000) which is considered part o f ordinary annual services; it does not include, inter alia, major capital expenditure, grants, loans or subsidies.

ADVANCE TO THE MINISTER FOR FINANCE (AMF)

The contingency provisions appropriated in the two Supply Acts and the two annual Appropriation Acts to enable funding of urgent expenditures not foreseen at the time of preparation o f the relevant Bills. These funds may also be used in the case o f changes in expenditure priorities to enable 'transfers' o f moneys from the purpose for which they were originally appropriated to another purpose pending specific appropriation.

ANNUAL APPROPRIATIONS

Acts which appropriate moneys for expenditure in relation to the Government's activities during the financial year. Such appropriations lapse on 30 June. They are Appropriation Acts.

APPROPRIATION

Authorisation by Parliament to expend public moneys from the Consolidated Revenue Fund or Loan Fund for a particular purpose, or the amounts so authorised. All expenditure (ie outflows of moneys) from the Commonwealth Public Account must be appropriated (ie authorised by Parliament). The authority for expenditure from individual trust accounts is provided under the

Audit Act 1901 or 'Annual Appropriations' and ' Special Appropriations'.

APPROPRIATION ACT (No 1)

An Act to appropriate moneys from the Consolidated Revenue Fund for the ordinary annual services of Government.

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APPROPRIATION ACT (No 2)

An Act to appropriate moneys from the Consolidated Revenue Fund for other than ordinary annual services. Under existing arrangements between the two Houses o f Parliament, the Act includes appropriations in respect o f new policies (apart from those funded under Special Appropriations), capital works and services, plant and equipment and payments to the States and the Northern Territory.

APPROPRIATION ACTS (Nos 3, 4 and 5)

Where an amount provided in an Appropriation Act ( No 1 or 2) is insufficient to meet approved obligations falling due in a financial year, additional appropriation may be provided in a further Appropriation Act. Appropriations may also be provided in these Acts for new expenditure proposals.

AUDIT ACT 1901

The principal legislation governing the collection, payment and reporting o f public moneys, the audit of the Public Accounts and the protection and recovery of public property. Finance Regulations and Directions are made pursuant to the Act.

COMMITMENTS

A commitment relates to a future obligation ie. an intention, as at 30 June, to incur an obligation which will give rise to a future sacrifice of service potential or economic benefit. When such an intention crystallises and becomes a present obligation a liability arises.

COMMONWEALTH PUBLIC ACCOUNT (CPA)

The main bank account of the Commonwealth, maintained at the Reserve Bank in which are held the moneys o f the Consolidated Revenue Fund, Loan Fund and Trust Fund (other than the national Debt Sinking Fund).

CONSOLIDATED REVENUE FUND (CRF), LOAN FUND, TRUST FUND:

The three Funds comprise the Commonwealth Public Account (CPA).

46

CRF

The principal working fund o f the Commonwealth mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation o f moneys by the Parliament before any expenditure can be made from the CRF These follow two forms:

(i) Annual Appropriations consisting of Supply Acts (Nos 1 and 2), the Supply (Parliamentary Departments) Act, the Appropriation Acts (Nos 1-5) and the Appropriation (Parliamentary Departments) Acts (Nos 1 and 2) (the Supply Acts relate to the first five months of the financial year and are subsumed by the corresponding Appropriation Acts); and

(ii) Special or Standing Appropriations.

Loan Fund

Authority for its establishment comes from the Audit Act 1901. All moneys raised by loan on the public credit of the Commonwealth are credited to the Loan Fund. Expenditures from the Loan Fund require an appropriation by Parliament and are limited to the purpose(s) for which moneys were originally raised as specified.

Trust Fund

Essentially comprises trustee funds (termed Heads of Trust') established under s.60 of the Audit Act (ie working accounts covering certain government agencies and certain other accounts in the nature of 1 suspense accounts'); and trust accounts established under other Acts to meet future expenditure.

Payments into the Trust Fund may be by way o f appropriation from the CRF or Loan Fund or direct credit o f private moneys. Expenditure from the Trust Fund is appropriated for (and limited to) the specific purposes of each trust account, or head of trust, by the Audit Act or the Act establishing the trust account or head of trust. Unlike the unused portion of annual appropriations, trust account balances - as with ’ special' or 1 standing' appropriations - do not lapse at the end of the financial year.

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EXPENDITURE

The total or gross amount of money spent by the Government on any or all of its activities (ie the total outflow o f moneys from the Commonwealth Public Account including both ' above the line’ and 'below the line' transactions, c.f. Outlays'). All expenditure must be appropriated, ie authorised by the Parliament, (see also 'Appropriations'). Every expenditure item is classified to one of the economic concepts o f outlays, revenue (ie offset within revenue) or financing transactions.

LOAN FUND

See ’ Consolidated Revenue Fund'.

ORDINARY ANNUAL SERVICES

See Appropriation Act (No 1)' and 'Appropriation Act (No 2)'.

OUTLAYS

An economic concept which shows the net extent to which resources are directed through the Budget to other sectors of the economy after offsetting recoveries and repayments against relevant expenditure items (ie outlays consist o f expenditure net o f associated receipt items). See also Appropriations'; and "Receipts offset within outlays'.

RECEIPTS

The total or gross amount o f moneys received by the Commonwealth (ie the total inflow of monies to the Commonwealth Public Account including both 1 above the line' and below the line' transactions). Every receipt item is classified to one of the economic concepts of revenue, outlays (ie offset within outlays) or financing transactions. See also 'Revenue'.

SPECIAL (STANDING) APPROPRIATION

Moneys appropriated by a specific Act o f Parliament for a specific purpose (e.g. unemployment benefits, grants to states for schools). They may or may not be for a specific amount o f money or particular period of time. Special Appropriations do not require annual spending authorisation by the Parliament as they do not lapse at the end o f each financial year. A distinction is sometimes made between Standing and Special appropriations (although for the purposes o f these financial

'-tatements both are comprehended by the term 1 Special Appropriation').

48

Standing appropriations refer to an open-ended appropriation o f the Consolidated Revenue Fund by the enabling Act o f a legislatively-based program: the amount appropriated will depend on the demand for payments by claimants satisfying program eligibility criteria specified in the legislation. Special Appropriations can be regarded as somewhere between Standing and Annual Appropriations: while a specified amount is provided, it is included in a separate Bill authorising the particular program and can be specified for any number of years.

TRUST FUND

See ' Consolidated Revenue Fund'.

AUSTRALIAN NATIONAL AUDIT OFFICE

Centenary House 19 National Crt Barton ACT 260C

our ref;

AUSTRALIAN SCIENCE AND TECHNOLOGY COUNCIL

INDEPENDENT AUDIT REPORT

Scope

I have audited the financial statement of the Australian Science and Technology Council for the period 1 July 1993 to 14 March 1994.

The statement comprises:

. Aggregate Statement of Transactions by Fund

. Detailed Statement of Transactions by Fund

. Program Statement

. Statement of Supplementary Financial Information

. Notes to the Financial Statement, and

. Certificate by the First Assistant Secretary, Office of the Chief Scientist and Assistant Secretary, ASTEC Branch.

The First Assistant Secretary, Office of the Chief Scientist and the Assistant Secretary, ASTEC Branch are responsible for the preparation and presentation of the financial statement and the information contained therein. I have conducted an independent audit of the financial statement in order to express an opinion on it

The Council employs the accounting policies described in Note 1 to the financial statement.

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statement is free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statement, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statement is presented fairly in accordance with Australian accounting concepts and standards applicable to public sector reporting entities employing a cash basis of accounting, and statutory requirements, so as to present a view which is consistent with my understanding of the Council’s operations and certain

assets and liabilities.

The audit opinion expressed in this report has been formed on the above basis.

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Audit Opinion

In accordance with sub-section 51(1) of the Audit Act, I now report that the financial statement, in my opinion:

. is in agreement with the accounts and records kept in accordance with section 40 of the Act

. is in accordance with the Financial Statement Guidelines fo r Departmental Secretaries (M odified Cash Reporting) made by the Minister for Finance, and

. presents fairly, in accordance with Statements of Accounting Concepts and applicable Accounting Standards and the Guidelines, the transactions of the Council for the period 1 July 1993 to 14 March 1994 and certain assets and liabilities as at 14 March 1994.

Trevor Burgess Acting Executive Director Australian National Audit Office

Canberra

30 June 1994

51