R & D Start Program Directions No. 2 of 2002

Overview

The Industry Research and Development Act 1986, enacted by the Parliament of Australia, aims to foster research and development activities across various industries by providing financial assistance and loans. To temporarily halt the process of accepting, assessing, and granting applications for financial assistance or loans under the R&D Start Program, the Minister for Industry, Tourism and Resources, Ian Elgin Macfarlane, issued the R&D Start Program Directions No 2 of 2002 on 7 May 2002. These directions serve to suspend the aforementioned activities until revoked, applying to all applications regardless of when they were made or under which Ministerial directions they fall. The purpose of these directions is to ensure the cessation of accepting, assessing, and granting applications for financial assistance or loans, and any applications received but not granted prior to the commencement of these directions are deemed refused.

Scope and Application

The R&D Start Program Directions No 2 of 2002, made under the Industry Research and Development Act 1986, are applicable to the Industry Research and Development Board and any entities seeking financial assistance or loans under the R&D Start Program. These directions temporarily suspend the acceptance, assessment, and grant of applications for financial assistance or loans under the R&D Start Program. They apply to all applications regardless of when they were received or under which Ministerial directions they were made. Any applications received but not granted by the Board prior to the commencement of these directions are deemed to be refused. The Board is prohibited from accepting, assessing, or granting any applications for financial assistance or loans after the directions commence. The directions are intended to operate in addition to and take precedence over the R&D Start Program Directions No 1 of 2002 in the event of inconsistency. The directions have a national jurisdictional reach as they apply to the Board and entities seeking assistance under the Commonwealth-administered R&D Start Program. There are no stated exclusions, exemptions, or thresholds in these directions, though their effect may be extended or varied by subordinate instruments made under the Industry Research and Development Act 1986.

Key Provisions

The R&D Start Program Directions No 2 of 2002 (the Directions) are a set of temporary measures issued under subsection 20(1) of the Industry Research and Development Act 1986. These Directions have been issued by Ian Elgin Macfarlane, the Minister for Industry, Tourism and Resources, and they suspend the acceptance, assessment and grant of applications for financial assistance or loans under the R&D Start Program until such time as these Directions are revoked (section 3). The Directions came into effect on the date of their publication in the Gazette (section 2). Under the Directions, the Industry Research and Development Board is required to refuse any application for financial assistance or a loan that it received but had not yet granted before the Directions came into force (section 7). Furthermore, the Board is prohibited from accepting, assessing or granting any applications for financial assistance or loans under the R&D Start Program after the Directions commenced (sections 8, 9 and 10). It is important to note that these Directions apply to all applications for financial assistance or loans under the R&D Start Program, regardless of when they were received or under which Ministerial directions they were made (section 6). There are no specific offences, penalties or consequences outlined in these Directions. However, by failing to comply with the Directions, the Industry Research and Development Board could potentially be subject to legal action or other consequences as may be appropriate in the circumstances. The Directions are to operate in addition to the R&D Start Program Directions No 1 of 2002, and in the event of any inconsistency, these Directions will prevail (section 5). Overall, the Directions provide a temporary halt to the R&D Start Program while the Board and the Minister assess the situation and determine the best course of action.