Directions under Section 23 of the Industry Research and Development Act 1986 to Committees Appointed under that Act – 5 July 2024

Overview

The Industry Research and Development Act 1986 was enacted to address the need for a coordinated approach to research and development activities across various industries in Australia. This Act was introduced by the Commonwealth Parliament with the policy objective of fostering innovation and enhancing the competitiveness of Australian industries through research and development. The Act provides a framework for the establishment of committees to advise on matters related to industry research and development, including the setting of research priorities and the allocation of research funding. The notifiable instrument issued on 5 July 2024, signed by Andrew Stevens as Chairperson of Innovation and Science Australia, provides specific directions to committees appointed under the Act, outlining the practices they must follow when performing their functions, such as requiring a quorum of at least three members to make decisions on substantive matters and providing a mechanism for referring matters to the Board in the absence of a quorum. These directions aim to ensure the effective and efficient operation of the committees in line with the objectives of the Industry Research and Development Act 1986.

Scope and Application

The Industry Research and Development Act 1986 applies to various committees established under its authority, specifically the Research and Development Incentives Committee, Cooperative Research Centres Advisory Committee, Innovation Investment Committee, Industry Growth Program Committee, and Entrepreneurs’ Programme Committee. These committees are tasked with overseeing and advising on industry research and development initiatives in Australia. The Act mandates that for any substantive decision on matters within their functions, a quorum of at least three members must participate and vote. If such a quorum cannot be achieved due to reasons such as conflicts of interest, the matter must be escalated to the Board for resolution. This legislative direction, effective from 5 July 2024, ensures structured and accountable decision-making processes within these committees, maintaining the integrity and effectiveness of industry research and development activities in Australia.

Key Provisions

The key operative sections of the notifiable instrument F2024N00691 require specific practices for committees appointed under the Industry Research and Development Act 1986 (IR&D Act). Section 1(a) specifies that for any decision on a substantive matter, a quorum of at least three members must participate and vote. If a quorum cannot be achieved due to reasons such as conflicts of interest, section 1(b) mandates that the matter be escalated to the Board for resolution. The committees affected by these directions include the Research and Development Incentives Committee, Cooperative Research Centres Advisory Committee, Innovation Investment Committee, Industry Growth Program Committee, and Entrepreneurs’ Programme Committee, as listed in section 2. The Act imposes several obligations on these committees, primarily centred around ensuring decisions are made with an adequate representation of the committee’s membership. This includes the requirement to maintain a quorum of at least three members for decision-making processes, which is essential for the validity of the committee’s decisions. Additionally, if a quorum cannot be achieved, the committees must refer unresolved matters to the Board, ensuring that the decision-making process remains intact and unbiased. Failure to adhere to these directions can result in significant consequences. While the instrument does not explicitly detail the penalties for non-compliance, breaches of the IR&D Act typically result in civil or criminal penalties, including fines or imprisonment, depending on the severity and intent of the breach. The maximum penalties for such breaches can be substantial, reflecting the importance of adhering to the legislative requirements set forth in the IR&D Act. These consequences serve to reinforce the importance of compliance and the integrity of the decision-making process under the Act.