Tension high as Federal Budget looms

Reports of potential reduction of industry-support programs, on the back of the Commission of Audit report, are causing angst in the biotech sector as the industry fears decisions that could seriously damage Australia’s hard-won momentum in innovation.

Still recovering after the damage caused by the sudden removal of the Commercial Ready program by the previous Labor government in 2008, which was closely followed by the GFC, the industry has clawed its way back. The ability to retain and sustain the industry in the following years has been largely credited to the three-pronged support from the R&D Tax Incentive; commercialisation support via Commercialisation Australia (CA); and venture capital support via the Innovation Investment Fund (IIF).

AusBiotech has been advocating for greater support for investment in innovation and new industries, and therefore extensions to the CA and IIF programs, to make them more meaningful; thus, the idea that these programs would be cut as rumoured is astounding to the organisation.

In a statement last week, AusBiotech said the Commission of Audit’s recommendations to remove the ‘crumbs’ of funding support that now exist for research, development and industry support was extraordinary.

AusBiotech CEO Dr Anna Lavelle said the suggestion to take away critical support for a potential key driver of Australia’s future economy was short-sighted and “reveals an unsophisticated, skewed assessment that gives no thought to investing in innovation and new industries”.

“The recommendations are regressive for Australia at a time when we should be considering extensions to these programs, rather than cuts,” she said.

The Federal Budget will be delivered tonight by the Federal Treasurer, the Hon Joe Hockey. AusBiotech will provide an update to members on Wednesday