BIO 2011: Kim Carr on the importance of biotechnology

This Letter from the Minister appeared in the May/June edition of Australian Life Scientist.

Biotechnology was rarely far from the headlines in 2010, and is certain to dominate the Australian agenda again in 2011. We expect great returns from the age of biotechnology, from cancer cures to clean energy – yet we cannot agree on how these miracles should be delivered. Complex legal, commercial and scientific realities are too often swept aside in the rush to easy answers.

For our part, biotechnology will remain at the centre of the Labor Government’s agenda. We have made no secret of our ambition for a world-class biotechnology research sector; nor our support for the biotechnology industry. It is the responsibility of government to create the right environment to encourage and reward private investment.

There are many levers in our control, touching every part of the innovation chain. As the primary custodians of Australian research, we have invested heavily to reinforce our reputation as a global leader in the life sciences. That includes our $85 million contribution to the new La Trobe Institute of Molecular Sciences. It will be a vital hub for biotechnology innovation.

For the clinical trials sector, we are reconstructing the regulatory framework to remove impediments to investment. We will work with our State and Territory colleagues and our networks in industry and research to strip inefficiencies, strengthen collaboration and bring down costs.

And for innovative firms, we have re-focused and expanded the support services the Commonwealth provides. Commercialisation Australia, for example, supported more than twenty related projects in its first year of operation alone.

Almost half of our case managers have specific expertise in biotechnology. We have also helped many promising firms to access vital start-up funds. In the year to 31 March 2011, more than $14 million was invested in life science companies through our venture capital programs.

The foundations for Australian biotechnology have been laid, through three years of sustained effort – and 2011 is the year to realise our ambitions. The carbon price will merely strengthen our position, building momentum for promising work in biofuels, biochemicals and biomass value chains. We will work through the Industry Innovation Councils to explore their potential.

I will not see this moment of opportunity squandered through the intransigence of our opponents in the Parliament, or our critics in the anti-science club. That is why the Government’s commitment to R&D taxation reform will not waiver.

Our new Tax Credit will re-focus the $1.6 billion we channel to business each year through the current Tax Concession, in favour of smaller firms conducting genuine R&D. I am aware this reform carries great weight for the biotechnology community, and I am determined to see firms access the benefits.

The Government will also resist calls to early and ill-considered action on the matter of patent reform. Our position is clear. We start from the premise that secure, workable, evidence-based intellectual property rights are critical to investment and jobs. That is why we have now released for consultation a comprehensive patent reform strategy. It will clarify exemptions for experimental use, and align our patent thresholds to those of our major trading partners.

We have been gathering the evidence to support that work for more than two years – and we will take the same measured approach to the specific issue of gene patents, recognising that our broader patent reform program will address many of the concerns in play.

In this regard, we are concerned about the potential impact on the industry of the Private Members Bill which is currently the subject of an inquiry by the Senate Legal and Constitutional Committee. I have already expressed my views on the vagaries I see in that Bill, and I will expect the Committee to have close regard to the concerns expressed by industry.

Biotechnology has brought hope to millions of Australians, in homes and hospitals around the country. Yet our success will prove our downfall if we cannot balance emotion with evidence. I trust we will renew our commitment to work together to deliver the great promise of the biotechnology age.

Senator Kim Carr, Minister for Innovation, Industry, Science and Research For further information, visit: www.innovation.gov.au and www.ausindustry.gov.au