Policies and Practices of the IR & D Board in relation to the Pre-Seed Fund (PSF) Program Direction No. 1 of 2003

Commonwealth of Australia

Industry Research and Development Act 1986

Policies and practices of the IR & D Board in relation to the Pre-Seed Fund (PSF) Program Direction No. 1 of 2003

I, IAN ELGIN MACFARLANE, Minister for industry, Tourism and Resources of the Commonwealth of Australia, acting under subsection 20(1) of the Industry Research and Development Act 1986, give the following direction to the Industry Research and Development Board.

Dated 28 August 2003

IAN ELGIN MACFARLANE

Minister for Industry, Tourism and Resources

PART 1 – AMENDMENTS TO PRE-SEED FUND (PSF) PROGRAM, POLICIES AND

   PRACTICES DIRECTION NO. 1 OF 2001

Citation

1. This direction may be cited as the Pre-Seed Fund (PSF) Program, Policies and Practices Direction No. 1 of 2003.

Commencement

2.                   This direction commences on the day on which particulars of the direction are signed and dated.

[NOTE: For the publication of the particulars, see s. 20(3) of the Act.]

Purpose

3.                   The purpose of this direction is to amend the Pre-Seed Fund (PSF) Program, Policies and Practices Direction No. 1 of 2001 (“Existing Direction”).

Interpretation

4.                   Unless otherwise specified all defined terms in this direction have the same meaning as in the Existing Direction.

Amendments

5.                   The definitions of “AusIndustry”, “eligible institution” and “ineligible institution” in clause 3 of the Existing Direction are deleted in their entirety and replaced with the following:

“AusIndustry” means AusIndustry, a business unit of the Department of Industry, Tourism and Resources, and its successors.

“eligible institution” means:

(a)                an institution of higher education specified in section 4(1) of the Higher Education Funding Act 1988 or Bond University;

(b)                the Commonwealth Scientific and Industrial Research Organisation (CSIRO);

(c)                the Defence Science Technology Organisation (DSTO);

(d)                the Australian Institute of Marine Science (AIMS);

(e)                the Australian Nuclear Science Technology Organisation (ANSTO);

(f)                 a Cooperative Research Centre as defined in the Cooperative Research Centres Program Guidelines; or

(g)                an institution which the Board considers to be a Commonwealth public sector research agency having regard to the following criteria:

(i)                  it is at least 50 per cent owned, controlled or funded by

 the Commonwealth or an Eligible Institution referred to

 in paragraphs (a) to (f) of this definition;

(ii)               it is primarily carrying out R&D activities; and

(iii)             it is:

(A)              providing services, or making facilities available, in relation to science or technology; or

(B)               training, or assisting in the training of, persons in the field of scientific or technological research; or

(C)               collecting, interpreting or publishing information relating to science or technology.

  “ineligible institution” means:

(a)                    an institution controlled, or more than 50 per cent owned, by a state or territory government;

(b)                    a non-profit health and medical research centre;

(c)                    a government business enterprise; and

(d)                    any organisation which the Board considered does not meet the criteria required to qualify as an eligible institution.

6.                   Clause 27 of the Existing Direction is deleted in its entirety and replaced with the following:

27.               An eligible company is a company, at the time of initial investment by a licensed fund:

(a)                which is undertaking pre-seed R&D activities;

(b)                which is incorporated in Australia;

(c)                which, if not controlled by some or all of the qualifying researchers actually carrying on those R&D activities within the company:

(i) is controlled by an eligible institution or qualifying researchers; or

(ii)               utilises in its R & D activities intellectual property at least 50% of which is owned by eligible institutions or by qualifying researchers;

(d)                has no sales revenues;

(e)                which has a majority of the personnel carrying on its R&D activities (by number) and assets (by value) inside Australia;

(f)                 which will use all of the licensed fund’s initial investment in Australia;

(g)                which is not a company that is a Cooperative Research Centre as defined in the Cooperative Research Centres Program Guidelines; and

(h)                which meets such other requirements as the Board thinks fit,

and whose purpose is at all times to commercialise the outcomes of those R&D activities and not solely or primarily research.