Treasury admits flaws in Rudd’s R&D plan
26-February-2010
Negative publicity across several industries criticising the Government’s proposed changes to research and development have unsettled the sensitive Rudd Labor Government.
After ignoring submissions on proposed R & D changes last year Treasury has now been forced to backflip and say “the proposed rules could have unintended consequences.”
This exposure draft bill has been in Treasury’s bottom draw for years and its recent manifestation was a try-on. This proposal gives no regard for R & D policy, it is merely a revenue raising measure.
It’s difficult to believe the Department of Innovation, Industry, Science and Research which is responsible for policy implementation of R & D had any substantial input into this bill. The Department hoodwinked the responsible Minister, Senator Carr, and admitted in Senate estimates recently that there was no Treasury modelling conducted regarding the assertions and assumptions made in the exposure draft bill and explanatory memorandum.
Research and Development is fundamental to increasing our productivity as a nation. This bill would gut the very important incentives that have enabled Australian innovation to flourish from the bio-tech sector to manufacturing.
The Government needs to abandon this fundamentally flawed bill and go back to the drawing board. Any rushed attempt to patch up this bill and rush it through the Parliament would only result in yet another poorly conceived bill with grave and detrimental consequences for Australian businesses across all sectors of the economy.