The Federal  Government will continue its matching contributions to rural research and development corporations, following the release of a review on Research and Development Corporations (RDCs) by the Productivity Commission. 

 

The Productivity Commission was asked by the Government last February to conduct an inquiry into RDCs which included an examination of the rationale for Australian Government investment in rural R&D and the effectiveness of the model overall.

 

That inquiry found that current funding arrangements, as well as the high level of industry engagement and support offered by all sectors, made the RDC model unique amongst others around the world.

 

It also found a need to increase private investment in rural R&D, and recommended lowering the cap on Government contributions to encourage industry to contribute their own funding.

 

However, the Minister for Agriculture, Fisheries and Forestry Senator Joe Ludwig, has not accepted that recommendation.

 

“While I fully support the need to increase private investment in rural R&D, I do not believe cutting Government contributions is the appropriate method to achieve greater industry investment,” he said.