Callaghan Innovation scrapped amid major science sector revamp
Thursday, 23 January 2025
An overhaul of publicly funded science research has been described by the Government as “the largest reset of the NZ science system in more than 30 years”.
The nation’s seven Crown Research Institutes will be transformed into three Public Research Organisations (PROs) focusing on: bio-economy, earth sciences, and health and forensic sciences.
A fourth technology PRO would focus on artificial intelligence, quantum [advanced computing] and synthetic biology.
Science, Innovation and Technology Minister Judith Collins, who outlined the reforms today, said the aim was to get maximum value from the government’s $1.2 billion funding of science.
“Getting the system settings right is the best way to boost long-term economic performance and ensure our scientists can pursue meaningful careers in New Zealand,” said Collins.
Callaghan Innovation had shown “poor financial performance” with an “over-reliance on Crown funding” and would be disestablished, said Collins. Some “important” functions moved to other parts of the system.
A new Prime Minister’s Science, Innovation and Technology Advisory Council would identify ways science, innovation and technology could be leveraged for economic growth.
A new agency called Invest New Zealand will be set up as a “one-stop-shop for foreign direct investment” - excluding public infrastructure - to support the government’s goal of doubling of exports by 2034.
A new national policy will be developed for managing Intellectual Property (IP) for science, innovation and technology-funded research. Collins said the new policy would be based on the model used by Canada’s Waterloo University, which vests ownership of IP with the researchers who created it.
Collins said the new PROs would look for private sector partnerships with the aim of maximising “the long-term NZ Inc benefits”.
They would also play a role in the “stewardship of public good science”.
In a statement Kim Wallace, convenor of CRI chairs, said the group had been given a confidential briefing of review by Sir Peter Gluckman and as a group were “very supportive of the proposed changes to consolidate like-oriented science CRIs”.
“In that meeting we emphasised that many of New Zealand’s ‘best and brightest’ work in the CRIs, and harnessing their minds, their knowledge, and their passion for getting great science done will immensely benefit the creation of a reformed sector.”
Wallace added the three largest CRIs already brought in more than $1m a week each in science funding.
Chair of the Science System Advisory Group Sir Peter Gluckman said he was delighted the Government had accepted the core concepts from the group’s first report recommendations.
“This is the most substantive change in the science and innovation system since 1991. With the universities now coming under the same minister, it brings more opportunities for a productive knowledge-based society,” he said.
“Global evidence shows science and technology are core to enhancing productivity in developed economies, including in small, advanced countries like New Zealand.”
Uncertain futures
Dr Lucy Stewart, co-president of the NZ Association of Scientists said the long-awaited announcement was “entirely focused on commercialisation and commercial benefits from science and technology”.
She said the government did not announce any new funding for local research despite the sector being “critically underfunded for decades.”
The Science System Advisory Group Report had identified four kinds of research - stewardship research, policy-focused research, knowledge-generating research, and exploitable research - and the announcement only focused on the last item.
Stewart, who is also the spokesperson for the Save Science Coalition, said the message to scientists was clear: “They are expected to be a source of revenue rather than working for the public good, and anything they do that isn't directly linked to economic gain is of little interest.”
She said that “absolutely” more scientists could lose their jobs and many could go overseas, especially with the uncertainty around Callaghan Innovation employees.
“The temperature has been such that I think anybody who can reasonably think about going overseas has probably already considered it.
“Within the press release they’re saying that we need to attract skilled people to New Zealand. Well could we stop encouraging skilled people to leave New Zealand first?”
Public Service Association acting national secretary Fleur Fitzsimmons said staff at Callaghan Innovation now faced an “uncertain future”.
“Just last year, the Government rushed to axe the jobs of around 500 scientists and researchers across various agencies, many of whom have been forced to uproot their lives and go offshore where their skills are valued.”
She found it “ironic” that over a decade ago it was John Key’s National-led Government that launched Callaghan Innovation.
“It is yet another example we have seen throughout the public service where agencies are being told by this Government that they have to do more with less. It makes no sense and won’t work.”
In a statement, Callaghan Innovation said it would “work hard” to support staff and customers as it implemented the Government’s decision to disestablish the agency.
“Obviously this is a tough day for the team at Callaghan Innovation. I want our people to know that we will do everything we can to support them during this process,” chief executive Stefan Korn said.
“Planning is also under way to manage the smooth transfer to other agencies of those functions that the Government wants to continue. That process will begin in earnest once the Government confirms it’s intentions.”
Callaghan Innovation said it would not comment further.
MacDiarmid Institute for Advanced Materials and Nanotechnology director Nicola Gaston said although the announcement was a “long time coming,” there needed to be consultation as the reforms were implemented.
She had seen “a lot” of job losses at universities and research institutes in the past couple of years, and wanted to see the Government acknowledge the impact it would have on scientists.
“To get us from where we are to there is going to take an awful lot of work and that’s a real cost to us all. I don’t think they understand what that actually means.
“The cost to people’s personal lives even transferring from one organisation to another. I’d really like to see the people running it reaching out in a deliberate way and acknowledging those costs.”
The four new Public Research Organisations:
Bioeconomy: Brings together AgResearch, Manaaki Whenua – Landcare Research, Plant & Food Research and Scion.
Earth sciences, including climate and hazards resilience: Brings together the National Institute for Water and Atmospheric Research and the Institute of Geological and Nuclear Sciences Limited. (Cabinet has previously agreed that NIWA will acquire MetService.).
Health and forensic science services: A refocus of Environmental Science Research.
Advanced technology PRO to deliver research, capability, and commercial outreach around advanced technologies such as artificial intelligence, synthetic biology, and quantum.