Explanatory Statement
Issued by the authority of the Minister for Industry, Tourism and Resources
Industry Research and Development Act 1986
COMET Program Directions No 1 of 2006
General Outline
The Commercialising Emerging Technologies Program (COMET) is a merit based, competitive program designed to facilitate the commercialisation of innovations by early stage growth companies, spin-off companies and individuals.
The Directions provide the Industry Research and Development Board (the Board) with an additional function. This additional function relates to the administration of the Program including the policies and practices to be followed by the Board in the performance of the function. In accordance with the Directions, the Board assesses applications against merit criteria outlined in the Directions and provides a ranking of those applications. The Program Delegate determines which eligible applications will receive funding and takes into account the merit ranking provided by the Board, the available Program funding, and the policy objectives of the Program.
The Directions do not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on that person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration on the Federal Register of Legislative Instruments.
Legislative authority
The Directions are issued to the Board by the Minister for Industry, Tourism and Resources (the Minister) acting under subsections 18A(1), 19(1) and 20(1) of the Industry Research and Development Act 1986.
Consultation
The Minister consulted the Board in amending the COMET Program Directions No. 1 of 2004 which is now replaced with these Directions.
Financial Implications
The Directions have no financial impact. The Directions provide a framework by which the Board provides assessments and merit ranking of eligible applications. The Program Delegate makes the final decision in determining the quantum, terms and conditions of grants under the Program.
Date of effect
The Directions commence on and from the day on which particulars of the Directions have been registered with the Federal Register of Legislative Instruments and published in the Gazette.
Notes on Provisions of the Directions
PART 1 – PRELIMINARY
Name of Directions
Clause 1
The Directions constitute the Commercialising Emerging Technologies (COMET) Program Directions No 1 of 2006. These replace the COMET Program Directions No. 1 of 2004.
Commencement
Clause 2
The Directions commence on and from the day on which particulars of the Directions have been registered with the Federal Register of Legislative Instruments and published in the Gazette.
Object of these Directions
Clause 3
The object of the Directions is to provide the Industry Research and Development Board (the Board) with instructions in relation to an additional function of the Board – namely the provision of assessments and merit rankings of eligible applications under the Program and the policies and practices that the Board must follow in the performance of this function. These instructions are given by the Minister to the Board for the effective delivery of the COMET program so that the stated objectives of the program are achieved.
Interpretation
Clause 4
This clause explains key terms used in the Directions. These include Business Advisers and COMET National Manager who play an important role in the delivery of the program. The clause also enumerates a range of eligible activities which are supported through COMET funding under an Assistance Plan.
PART 2 – CONSIDERATION OF APPLICATIONS TO PARTICIPATE IN THE PROGRAM
Board to have regard to certain policy objectives
Clause 5
The Board must have regard to the policy objectives of the Program in giving effect to the Directions. The policy objectives relate to increasing Australia's sustainable economic growth and building sustainable and high growth businesses through commercialisation of innovations. A key element of the policy objectives is to encourage commercialisation through the raising of capital by COMET grantees and through collaboration and partnerships with other business entities.
Procedure
Clause 6
The Board must assess and rank each eligible application for COMET grants and provide this to the Program Delegate within a certain time limit (60 days). The Program Delegate is authorised by the Minister to administer the COMET program, including determining which applications for funding under the program will be successful and which applications will not be successful.
Board may refuse to provide merit ranking
Clause 7
The Board may refuse to provide a merit ranking of a particular applicant if it is not satisfied that its application shows sufficient merit for COMET funding. The merit criteria against which an application is assessed and ranked are enunciated in clause 9.
PART 3 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS
Assessment of applications
Clause 8
The Board assesses the merit of each applicant against the merit criteria contained in the Directions. In assessing the merit of each application the Board determines the extent to which the application satisfies the merit criteria for COMET funding.
Merit Criteria
Clause 9
The Board will assess applicants against the merit criteria in the Directions. These criteria are:
(a) Actual or potential management capability to commercialise the innovation with appropriate COMET support;
(b) Market opportunity and strategy of the innovation;
(c) Technical feasibility of the innovation; and
(d) Demonstrated need for COMET funding.
The merit criteria are used to assess the key capabilities of the applicant to commercialise innovations and to determine if there is an identified need for COMET funding to undertake eligible activities under an Assistance Plan.
PART 4 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS
Ad hoc technical assessments
Clause 10
The Program Delegate may request the Board to provide a technical assessment on any matter arising from the COMET Assistance Plan, which describes the tailored package of support for the COMET grantee to assist in the commercialisation of innovations.
PART 5 – EVALUATION OF THE PROGRAM
Clauses 11
The Board may advise the Minister on non-financial administration matters relating to the program such as administration of the COMET program and whether and to what extent the objectives of the program are being achieved. The Minister may also request such advice from the Board if necessary.
Clause 12
This clause provides for the Board to collect data, review performance of the program and advise the Minister on such performance. The clause also provides for cooperation of the Board for any independent evaluation of the COMET program. Evaluation or review of the program is undertaken from time to time to assess the appropriateness, effectiveness and efficiency of the program in meeting identified needs concerning commercialisation of innovations in Australia.