Budget 2010: Not much for science or biotech

The 2010-2011 budget handed down by the Treasurer, Wayne Swan, last night was exceptional, if only for its unexceptional nature, with fiscal restraint overshadowing any major spending initiatives.

One area that received virtually no attention was science and biotechnology, with no major announcements of any further investment in these two sectors.

The budget was pitched by Mr Swan as a paragon of "responsible economic management" and, as such, focused primarily on bringing the budget deficit back into surplus rather than directing government spending towards investment in new programmes, or the continuation of old ones.

While last year's budget saw an injection of funds into universities to invest in new infrastructure and equipment, this budget was silent on further investment into science or science education.

The biotechnology industry also didn't garner any attention, although the lowering of the company and small business tax rates will help all biotechs of all sizes.

The health system did receive an injection of funds, following on from the federal government's emphasis on revamping the national health system. However, these changes come at the very end point of health care and do little to advance research into health or new drugs or medical devices.

The response to the budget from the scientific community has been one of disappointment in a 'missed opportunity' to invest in the long term future of Australian science and innovation.

Professor Garry Jennings, Director of the Baker IDI Heart & Diabetes Institute, welcomed the emphasis on health, but expressed disappointment that there was no investment in health research.

“The deafening silence on health research funding in the budget raises the question of where and how innovation will occur," he said.

"More money for the here and now is welcome but needs future proofing with research linked to clinical care across the health system and a workforce that is savvy to new developments."

Professor Bob Williamson, Secretary for Science Policy at the Australian Academy of Science, commented that universities have received little in this budget.

“In last year’s budget, there was a long overdue increase of about 25 per cent in Australia’s research funding, particularly to the universities, but this focussed on new buildings and large pieces of equipment," he said.

"The Academy notes that we still need to attract and retain the best people in science to occupy the labs, run the experiments, and keep Australia at the forefront of world research. Some major initiatives, such as the Australia Fellowships in medical research, come to an end this year.”

Professor Suzanne Cory, the new president of the Australian Academy of Science, held hopes that the government might choose to make a greater investment in science in the wake of an upcoming Parliamentary Inquiry into research.

“A Parliamentary Inquiry into Australia’s International Research Collaboration will report later this year, and we hope the Government will respond with renewed funding for this crucial area, guided by whole of Government strategy. Currently, valuable programmes with long term international partners are in jeopardy, as forward planning cannot be undertaken."

The revamped R&D Tax Credit is still on the table for introduction as of July 1. If that makes it through, there might still be some aid yet for the biotechnology industry from the federal government.