Directions under Section 23 of the Industry Research and Development Act 1986 to Committees appointed under that Act

Overview

The Industry Research and Development Act 1986 (IR&D Act) was enacted to address the need for a coordinated approach to research and development within Australia, ensuring that industry-led innovation is adequately supported and aligned with national economic and strategic objectives. The Act establishes mechanisms for the funding and oversight of research and development activities, fostering collaboration between industry, research institutions, and government. The Commonwealth Parliament enacted this legislation to enhance Australia's research and development capabilities, ultimately contributing to economic growth and competitiveness. As per the notifiable instrument F2021N00154, the policy objective is to ensure effective governance and decision-making processes within committees appointed under the IR&D Act, by setting out specific practices and quorum requirements for their operations. This approach aims to maintain integrity and efficiency in the administration of research and development incentives and programs.

Scope and Application

The Industry Research and Development Act 1986 (IR&D Act) applies to the committees appointed under that Act, including the Research and Development Incentives Committee, Cooperative Research Centres Advisory Committee, Innovation Investment Committee, Biomedical Translation Fund Committee, and Entrepreneurs’ Programme Committee. These directions are issued under section 23 of the IR&D Act and apply to the Commonwealth of Australia. The directions establish that for a committee to make a decision on a substantive matter relating to its functions, there must be a quorum of at least three members participating in the deliberations and voting on the decision. If such a quorum does not exist due to reasons such as conflicts of interest, the matter must be referred to the Board for decision. These directions are effective from 1 July 2021. The Act does not specify any exclusions, exemptions, or thresholds for the application of these directions, and the scope of the application is limited to the committees specified in the directions. The application of the Act may be extended or restricted through subordinate instruments.

Key Provisions

The notifiable instrument, F2021N00154, issued under section 23 of the Industry Research and Development Act 1986 (IR&D Act), outlines specific directions for the committees appointed under the IR&D Act. These directions, effective from 1 July 2021, pertain to the practices these committees must follow in the performance of their functions (s. 2). The main operative sections of the instrument require that for any substantive decision made by a committee, a quorum of at least three members must participate in the deliberations and vote on the decision (Direction 1(a)). If a quorum cannot be achieved due to reasons such as conflicts of interest, the matter in question must be referred to the Board for a decision (Direction 1(b)). The obligations imposed by this instrument on the committees include ensuring that they maintain a quorum of at least three members when making decisions on substantive matters. This requirement is crucial for the proper functioning and decision-making processes of the committees. Additionally, if a quorum cannot be established for any reason, the committee must promptly refer the matter to the Board. This ensures that decisions are not delayed and that there is a clear and accountable process for addressing issues that arise when a quorum cannot be met. Failure to adhere to the directions outlined in the instrument may result in procedural inefficiencies and potential disputes over the validity of committee decisions. For instance, if a committee makes a decision without a quorum, that decision could be challenged on the grounds of procedural impropriety. The implications of such breaches could include the need for the Board to revisit and potentially overturn decisions made without a proper quorum, leading to delays and additional administrative burdens. Under the IR&D Act, specific penalties or consequences for breaching these directions are not explicitly stated in the notifiable instrument. However, the importance of adhering to these procedural requirements suggests that non-compliance could lead to legal challenges or administrative penalties. The Act’s broader framework likely includes mechanisms for addressing breaches of procedural requirements, although the exact nature of these consequences would need to be determined within the context of the IR&D Act and any related legislation or regulations.