Innovation Investment Fund Program Round Two (Additional Function of the IR&D Board) Direction No. 1 of 1999

Overview

The Industry, Research and Development Act 1986 was enacted to promote and support research, development, and innovation in Australia, aiming to enhance the nation's economic growth and competitiveness. This Act empowers the Minister for Industry, Science and Resources to direct the Industry Research and Development Board in managing specific programs, such as the Innovation Investment Fund. The policy objective of this legislation is to facilitate investments in companies that have the potential for significant economic and technological advancement, thereby fostering a robust innovation ecosystem within Australia. The Industry Research and Development Board, under the direction of the Minister, plays a crucial role in administering these programs, ensuring that the necessary financial and strategic support is provided to eligible entities, driving progress and innovation across various sectors. The Innovation Investment Fund program Round Two (Additional Function of the IR&D Board) Direction No. 1 of 1999, issued by Minister for Industry, Science and Resources Nicholas Hugh Minchin, delineates an additional function for the Board, specifically to administer Round Two of the Innovation Investment Fund program. This Direction, which commenced upon its publication in the Gazette on 26 November 1999, grants the Board the authority to invest in or provide finance to managed funds that subsequently invest in or finance eligible companies. This initiative seeks to address the identified gap in funding and support for innovative companies, ensuring they have access to necessary capital to realise their potential and contribute to the nation's economic and technological landscape.

Scope and Application

The Innovation Investment Fund program Round Two (Additional Function of the IR&D Board) Direction No. 1 of 1999, issued under the Industry Research and Development Act 1986, designates an additional function for the Industry Research and Development Board. Specifically, the Board is tasked with administering Round Two of the Innovation Investment Fund program, which involves investments in, or the provision of finance to, managed funds that subsequently invest in, or provide finance to, eligible companies as defined in the relevant policies and practices. This legislative instrument is applicable to the entities and individuals involved in the specified investment activities, with a clear focus on facilitating innovation and development in targeted sectors. The geographic scope of this Direction is national, impacting entities and companies across Australia. It is important to note that the policies and practices of the IIF program from Round One do not apply to Round Two, thereby allowing for tailored approaches to different phases of the program. This Direction does not explicitly outline exclusions or exemptions but rather provides a framework through which the Board can operate within the parameters set by the overarching Act. The application and interpretation of this Direction may be further refined or extended through subordinate instruments as necessary to achieve the program's objectives.

Key Provisions

The Industry Research and Development Act 1986, under the authority of the Minister for Industry, Science and Resources, has introduced the Innovation Investment Fund program Round Two (Additional Function of the IR&D Board) Direction No. 1 of 1999. This Direction, which commences on the day of its publication in the Gazette, designates an additional function for the Industry Research and Development Board (section 3). Specifically, the Board is now tasked with administering Round Two of the Innovation Investment Fund program, a responsibility that involves making investments or providing finance to managed funds, which in turn are to invest in, or provide finance to, eligible companies as defined in the IIF program (Round Two), Policies and Practices Direction No. 1 of 1999 (section 3(2)). It is crucial to note that the IIF program, Policies and Practices Direction No. 1 of 1997, does not apply to Round Two of the Innovation Investment Fund program (section 3(3)). The Act imposes specific obligations on the Industry Research and Development Board in relation to the administration of Round Two of the Innovation Investment Fund program. The Board must ensure that the investments or financial provisions are directed towards companies that meet the eligibility criteria as specified in the IIF program (Round Two), Policies and Practices Direction No. 1 of 1999. This includes overseeing the process by which managed funds are selected and monitored to ensure compliance with the program's objectives and criteria. The Board is also responsible for maintaining transparency and accountability in the administration of these funds to ensure that the intended outcomes of innovation and investment in research and development are achieved. In terms of the consequences of non-compliance with the provisions of the Act, it is necessary to understand that the Act itself does not explicitly state offences, penalties, or civil/criminal consequences for breach. However, given the nature of the legislation and its role in directing governmental functions, any failure to adhere to the prescribed responsibilities could lead to administrative or legal repercussions. These might include internal audits, investigations, or reviews by governmental bodies, and could potentially lead to more formal legal actions if breaches are found to be significant. The specifics of any penalties or consequences would be determined by the applicable laws and regulations governing the administration and enforcement of the Act. The Innovation Investment Fund program Round Two (Additional Function of the IR&D Board) Direction No. 1 of 1999 represents an important legislative instrument aimed at fostering innovation and investment in research and development within Australia. By clearly defining the additional function of the Industry Research and Development Board and outlining the specific obligations associated with this role, the Direction ensures that the program is administered effectively and in accordance with the legislative intent. While the Direction itself does not detail specific penalties for non-compliance, the importance of adhering to the outlined provisions is underscored by the potential administrative and legal consequences that could arise from any failures to meet the established obligations.