Macfarlane pledges continued biotech support

The biotechnology industry is likely to be one of the beneficiaries of the forthcoming successor to the Backing Australia's Ability program, according to federal industry minister Ian Macfarlane.

"Obviously biotech is an area in which Australia has many competitive advantages. I'm keen for further innovation policy to help this cutting-edge sector and will be arguing for such in the final cabinet discussions we're yet to have," Macfarlane told Australian Biotechnology News by email today.

"The $150 million pharmaceutical program, P3, was designed with biotechs in particular, in mind. It is directed at companies looking to commercialise research and progress clinical trials up to the point that a drug is registered with the TGA, or the FDA in America. Clinical trials are also substantially assisted by the R&D tax concession schemes."

Macfarlane would not disclose too many details of the successor to Backing Australia's Ability, which will wind up in 2005-06, but said he was keen to keep the focus on the commercialisation and delivery end of the R&D cycle.

"The prime minister, [education minister] Brendan Nelson and I are well down the path of reviewing the success of the present program and considering options for the next package," Macfarlane said. "However, it should be remembered that the original Backing Australia's ability still has almost $2 billion left to run. The timing, and details, of the next package are details yet to be decided by the government. Obviously all this must feed into the budget development process."

Macfarlane said that industry assistance programs falling under the Backing Australia's Ability initiative ran the gamut from specific incentives to tax concessions and enticements for venture capital investment, and these elements would be taken into consideration when deciding on the shape of the next package.