Explanatory Statement
Issued by the authority of the Minister for Industry, Tourism and Resources
Industry Research and Development Act 1986
Industry Cooperative Innovation Program Ministerial Directions
No 1 of 2006
General Outline and Legislative Authority
The Industry Cooperative Innovation Program (ICIP) is a $25 million merit-based, competitive funding program aimed at supporting business-to-business cooperation on innovation projects that enhance the productivity, growth and international competitiveness of Australian industries.
The purpose of the Industry Cooperative Innovation Program Ministerial Directions No 1 of 2006 is to confer an additional function on the Industry Research and Development Board (the Board), namely the provision of technical assessments and merit ranking of eligible applications under the competitive grants element of ICIP and to set out the policies and practices that the Board must follow in assessing and providing merit ranking of ICIP applications.
Under ICIP, eligible applications are assessed by the Board, which then provides a merit ranking of eligible applications to the ICIP Program Delegate (the Program Delegate). After receiving a merit ranking from the Board, the Program Delegate may approve an application. In doing so, the Program Delegate must take into account the merit ranking provided by the Board.
The Directions refer to the ICIP Guidelines No 1 of 2006 (the Guidelines). The Minister for Industry, Tourism and Resources has issued the Guidelines to the Department of Industry, Tourism and Resources for the delivery of ICIP. The Directions were gazetted on 10 March 2006 (Commonwealth of Australia Gazette No. S37, 10 March 2006).
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.
Consultation
The Minister for Industry, Tourism and Resources consulted the Board during the development of the Directions, as required under subsection 20 (2) of the Industry Research and Development Act 1986. Public consultation in relation to the program was undertaken from October 2004 to January 2005. This included workshops on the design of ICIP in a number of capital cities in December 2004, and a call for submissions in response to the discussion paper issued in relation to the program.
Legislative authority
The Directions are issued to the Board by the Minister for Industry, Tourism and Resources acting under section 18A and subsections 19 (1) and 20 (1) of the Industry Research and Development Act 1986.
Financial Implications
The Directions have no financial impact. The Directions provide a framework by which the Board provides technical assessments and merit ranking of eligible applications to the Program Delegate. The Program Delegate has the final decision in determining the quantum, terms and conditions of an ICIP grant.
Date of effect
The Directions commenced on 10 March 2006 being the date on which they were published in Commonwealth of Australia Gazette No. S37.
Notes on Provisions of the Directions
PART 1 – PRELIMINARY
Name of Directions
Clause 1
This clause provides that the name of the Directions is the Industry Cooperative Innovation Program Directions No 1 of 2006.
Commencement
Clause2
Clause 2 provides that the Directions commence on 8 March 2006 or on the day on which they are published in the Gazette, whichever is the later.
Object of these Directions
Clause 3
Clause 3 provides that the object of the Directions is to give Directions to the Board in relation to an additional function of the Board – namely the provision of technical assessments and merit rankings of ICIP applications under the competitive grants element of the ICIP - and the policies and practices that the Board must follow in the performance of this additional function.
Interpretation
Clauses 4-5
Clauses 4 and 5 define key terms used in the Directions.
PART 2 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS
Procedure
Clauses 6-7
Clause 6 provides that the Board, subject to Clause 8, will assess eligible applications referred to it by the Program Delegate under clause 15 of the Guidelines and then provide the Program Delegate with a merit ranking of those applications.
Clause 7 provides that the Board will, once an application has been referred to it, consider the application as soon as practicable.
The Board may decline to provide merit ranking
Clause 8
Clause 8 provides that the Board may decide to refuse to provide a merit ranking in respect of applications that it considers are either ineligible or show unsatisfactory merit.
Assessment of eligible applications
Clauses 9-10
Clauses 9-10 provide that the Board must assess each application against the merit criteria and must take into account advice provided to it by the Department of Industry, Tourism and Resources on ICIP policy issues that are relevant to, or impact on, the merit criteria.
Merit Criteria
Clause 11
Clause 11 provides that different merit criteria apply depending on whether an applicant seeks funding for a Stream A project or a Stream B project.
Stream A project merit criteria
Clause 12
Clause 12 sets out the merit criteria for Stream A projects.
Stream B project merit criteria
Clause 13
Clause 13 sets out the merit criteria for Stream B projects.
PART 3 – ASSESSMENT OF PROPOSALS FOR VARIATION TO THE AGREED PROJECT
Clauses 14-16
Clause 14 provides that, should a proposal be submitted to vary a project supported by ICIP or to materially vary the consortium membership responsible for the project, the Program Delegate may refer the proposal to the Board for assessment.
Clause 15 provides that the Board will assess such proposals as soon as practicable and provide the assessment to the Program Delegate.
Clause 16 sets out the matters that the Board must determine in making its assessments.
PART 4 – OTHER TECHNICAL ASSESSMENTS
Clauses 17-19
Clause 17 provides that the Program Delegate may request the Board to provide an assessment of technical matters associated with ICIP applications, activities and projects, including eligibility, technical milestones, compliance, national benefit and technical merit.
Clause 18 states that, in carrying out such assessments, the Board must take into account any relevant policies relating to the administration of ICIP that are issued under the Guidelines.
Clause 19 states that the Board must conduct such assessments within a reasonable time and provide the assessment to the Program Delegate.
PART 5 – BOARD TO PROVIDE ADVICE ON POLICIES AND OPERATIONS OF THE PROGRAM
Clauses 20-21
Clause 20 provides that the Board may advise the Minister on non-financial administration matters relating to ICIP, including program administration and the extent to which ICIP meets its policy objectives.
Clause 21 provides that the Board may collect and analyse data related to ICIP’s performance, provide advice to the Minister on such performance, and must cooperate with any independent evaluation of ICIP.
PART 6 – TRANSITIONAL PROVISIONS
Clauses 22-23
Clause 22 indicates that the ICIP Directions that were in force immediately prior to the commencement of these Directions are revoked on and from the date these Directions take effect.
Clause 23 states that the ICIP Directions that were in force immediately before the commencement of these Directions, continue to apply to grants that were approved when they were in force.