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PoliticsJanuary 24, 2025

The science sector shake-up, explained

a turquoise background with orange giant DNA spiralling across the screen and the head of hudith collins looking severe with a blonde bob superimposed over the body of a scientist in a cliched white lab coat holding some coins and a pipette
Image: The Spinoff

The government announced some big changes to the science and research sector this week. Here’s what you need to know. 

On Thursday, outgoing science minister Judith Collins announced major changes to New Zealand’s science sector that will impact several thousand staff working across Callaghan Innovation and the Crown Research Institutes. The government contributes more than $1.2bn to the research sector each year and the reforms will “maximise the value” of this money, Collins said. 

Here’s a quick guide to what the changes are and what they might mean for research in New Zealand.

What are the Crown Research Institutes? Why do they exist? 

There are currently seven Crown Research Institutes (plus MetService, a state-owned enterprise) that were created in 1992 to do research for the good of New Zealand. While they receive government funding, the institutes are also expected to cover capital costs with commercial enterprises. They’re kind of like companies, but government ministers can appoint board members and they aren’t expected to maximise profit. The institutes are Niwa, which does lots of research around climate, freshwater and the ocean (and is about to merge with weather forecaster MetService); ESR, which focuses on human health, including forensic science, diseases and genomics; GNS, which researches geology, volcanoes and earthquakes; Plant and Food Research and AgResearch, which focus on horticulture and agriculture respectively; Manaaki Whenua-Landcare Research, which looks at environment and biodiversity issues; and Scion, with a focus on forestry, biotechnology and manufacturing. 

The Crown Research Institutes will be merged into three “Public Research Organisations” (PROs) with a focus on bio-economy (Ag Research, Manaaki Whenua, Plant and Food Research and Scion), earth science (MetService, Niwa and GNS Science), and health and forensic science (ESR). There will also be another PRO focused on “advanced technology”: buzzy areas of research like artificial intelligence, quantum computing and forensic sciences. This area isn’t currently covered by any of New Zealand’s existing CRIs. Yes, that was a lot of acronyms and initialisms.

“[The PROs] will be adaptable and responsive to government priorities, accountable through appropriate cost recovery, and set up to be well-coordinated and to avoid unnecessary duplication,” Collins said in a press release. It’s long been pointed out, for example, that both Niwa and MetService (a state-owned enterprise) provide weather forecasting services, and even before yesterday’s announcement there was a plan for the two organisations to merge.

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Weather forecasting is one of the services performed by Crown Research Institutes Niwa and MetService (Image: Tina Tiller)

I’ve survived the onslaught of acronyms, but I want to know what the other parts of this announcement mean. What does Callaghan Innovation do? 

Created in 2013, Callaghan Innovation’s main objective was, according to the act that established it, “to support science and technology-based innovation and its commercialisation by businesses, primarily in the manufacturing sector and services sector, in order to improve their growth and competitiveness”. In other words, it was supposed to turn scientific research into commercial opportunities.

In practice this meant it dealt with everything from launching GovGPT, an AI chatbot for small businesses wanting to access government services, to funding research that led to the launch of a soda designed to enhance gut health. Collins criticised the finances of the organisation. “Callaghan has simply been spread too thinly across too many functions, leading to poor financial performance and an over-reliance on Crown funding.”

Many of Callaghan Innovation’s responsibilities will be transferred to other agencies. A “one-stop shop” called Invest New Zealand will be responsible for attracting international talent and foreign investment into New Zealand’s innovation sector. In a statement, Callaghan chief executive Stefan Korn said that it would take some months to formally wind up the organisation. “We will work closely with our customers and keep them updated about what this change means for them,” he said. “We will do everything we can to support [the Callaghan Innovation team] through this process.”

a blue background with mould growing on a petri dish
Research on risks to human health would fall under the responsibilities of one PRO (Image: Science Photo Library, via Getty)

Who will supervise all these changes? 

As well as the science and technology minister, there is a (currently vacant) office of the prime minister’s chief science adviser. It seems like this role will be replaced by a council of advisers called the Prime Minister’s Science Innovation and Technology Advisory Council, which will determine what the PROs should be prioritising and where funding should be directed into the research system as a whole. 

Why are there changes to intellectual property? 

Much of the focus of these announcements was around making the government’s research funding have more direct commercialisation potential, just as the messaging around changing the Marsden Fund last year did too. “The changes… will ensure a science system that generates maximum value for the economy and, therefore, for New Zealanders,” Collins said. Referring to loosened rules around gene technology, she said the changes would “unlock enormous opportunities for our science sector”.

This extends to intellectual property. In a sort of announcement-of-an-announcement, Collins said the government wants to incentivise individual researchers to be directly rewarded for innovation they have been part of; this could mean that researchers on funded projects will receive financial benefits from anything that has been commercialised. For some reason the government’s plans are based on a system in place at Canada’s University of Waterloo, which describes itself as having “the most entrepreneurial IP policy in the North America [sic].”

OK, so the government wants to get more money out of science research. How have scientists responded? 

Scientists who are already concerned about funding following the changes to the Marsden Fund last year were cautiously optimistic, referring to a just-released report about the science system in New Zealand. Nicola Gaston, director of the MacDiarmid Institute, said that the principle of the reforms was sound, but she had questions about implementation. “Work done by scientists within the sector to adjust will have a cost in time not spent on science,” Gaston said. “Given the massive cuts made to both university and CRI workforces over the last couple of years, this is a lot to ask.” She said more resourcing and a commitment to ensure changes were implemented efficiently would be necessary. 

Michael Baker, a public health professor at the University of Otago, said he was pleased a PRO organisation dedicated to health would replace the ESR, although there wasn’t yet much detail about this. “It is important to remember that improving health, wellbeing and equity has economic value,” he said. “Interventions like vaccination and outbreak prevention and control are highly cost effective.”

Lucy Stewart, co-president of the New Zealand Association of Scientists, took a more pessimistic stand. She worried that the announcement’s focus on commercial research would mean other vital areas would be ignored. “The message to scientists from this government is clear: they are expected to be a source of revenue rather than working for the public good, and anything they do that isn’t directly linked to economic gain is of little interest.”

When is all of this going to happen? 

Big changes in organisations that employ hundreds of people will take a while, and the names of the new PROs haven’t even been released yet. In the first half of this year, the advisory council members will be appointed and the changes to intellectual property policy will be considered. In the second half of the year, funding will begin for the advanced technology PRO and the legislation for the changes will be passed in the house, to take effect in 2026. 

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BooksJanuary 23, 2025

Why we’re not ready to extend the parliamentary term

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Until there is a considerable strengthening of the accountability mechanisms, the parliamentary term should not be extended, argues Brian Easton in this edited excerpt from his latest book In Open Seas: How the New Zealand Labour Government Went Wrong: 2017–2023.

A British Lord Chancellor described the British political system as an “elected dictatorship”. Even so, it is meant to act in the interests of the people. Because dictators usually ignore any such responsibility, liberal democracies have accountability mechanisms to restrain them or expose them if they do. 

In a democracy there are many accountability mechanisms including the independent media, other private sector agents and the legal system. Perhaps the most important mechanism is “free” (i.e. independent) elections of a parliament which both appoints the political wing of the government and holds the entire government to account between elections.

The term of a New Zealand parliament is three years. There is some support by those in power for a longer term, although out of power they hanker for an early election. One suspects that the population generally favours a shorter period to keep “the buggers honest”. Strong and robust accountability requires mechanisms between elections. 

The government has two major wings: a political wing of cabinet ministers who are also members of parliament and a public service wing, with the main purposes of advising the ministers and implementing the government’s policies. Parliament has two main means of enforcing accountability: by challenging a minister about something for which they are responsible and by directly challenging a part of the bureaucracy.

Neither channel seems to be particularly effective. MPs prefer to personalise issues so they become too eager to blame a minister, even when it is not the minister’s responsibility, enabling the bureaucracy to hide behind its ministers. 

Nor do the select committees seem to work particularly well. An indication of the bureaucracy’s contempt for them was when “faceless [Department of] Internal Affairs officials went behind the backs of MPs to make ‘unauthorised’ changes to the bills setting in place the government’s Three Waters reforms”. The journalist, Jonathan Milne, went on to comment, “it’s indicative of the ongoing problem we have in New Zealand, that parliament is highly dependent on the executive for advice on bills and drafting. The people who are amending the bill don’t work for parliament, but for the government.”

The Australian system has two sorts of select committees. One, chaired by a member of the government caucus, deals with the government’s legislation; the other, chaired by someone from the Opposition, scrutinises government agencies. There appears little parliamentary enthusiasm for such an approach in New Zealand.

The arrogance of the bureaucracy is well illustrated by the 2020 Public Service Act. The government gave the public six weeks for public consultation after taking years to prepare the bill. Did it think that the public has little interest in the way the bureaucracy is run and no competence to comment on it? The Public Finance Act was amended in a way which weakened parliamentary control of the public finances; MPs complied. 

MMP selects a parliament which is reasonably representative of the population, but parliament itself selects the prime minister on a winner-takes-all basis so that the cabinet does not reflect the whole of parliament. Strengthening parliamentary accountability shifts cabinet’s decisions back towards the political centre.

Criticism is at the heart of the ability to hold the government to account. We need to think about weakening the control that central parties have over who gets elected because this limits the ability of MPs to criticise. A particularly onerous control is each party’s election list where a high ranking returns the MP to parliament even if they lose their electorate seat. It is standard to interpret the ranking as an indication of the degree of favour the central party bestows on the candidate not of competence or ability.

It is not obvious how to reduce the power the central party has over its ranking simply; complexity would cause confusion. One proposal is not to have a ranked list at all. Instead the additional MPs, required to make up the number above those directly elected, would be those candidates in each party who won the most electorate votes despite losing their seats.

Further power comes from the way political parties are funded. Funders are not representative of the population and the funding biases political decisions. Once every three years, parliament reviews the rules about political party financing. Yet there remain too many loopholes which parties hungry for funds exploit. That makes them vulnerable to (often secret) pressures in which dollars overrule people.

The view of the House from the press gallery.

Parliament procedures need to be strengthened. It might be useful if when introducing a bill to parliament the government distinguished between those which are central to its policies and those which come from the bureaucracy and where it is willing to consider changes if the evidence presented to the select committee suggests them. Ministers do not have to front their department’s ambitions. 

Stronger and more independent MPs are not enough. They need to hold the government accountable, which is different from “opposition” – opposing the government. Sadly, the “loyal opposition” (either party) and critics often do not seem to understand the distinction between the two tasks. Too often the issue is presented as if the only failure is failure by a government politician.

The best parliamentary accountability currently comes from officers of parliament who are appointed by statute with the powers to carry out tasks that the MPs could do but do not have the time or the technical capability to do. Currently there are three officers of the New Zealand parliament: auditor general; commissioner for the environment; Ombudsman.

There are similar positions in the bureaucracy but they are subordinate to the self-same bureaucracy. They include: chief archivist; commissioner for children; health and disability commissioner; human rights commissioner; police complaints commissioner; privacy commissioner; retirement commissioner.

Is the independence of these commissioners compromised? The short answer is that even if it is not currently, it can be. In any case, the effectiveness of independent commissioners can be compromised by under-supplying resources needed for the job, with no appeal for better funding other than to the agency they are monitoring, or by making poor quality appointments. Too often MPs have compliantly agreed to demands of the bureaucracy to reduce the independence and powers of these commissioners. The case is always made in terms of bureaucratic rationalisation – accountability is never mentioned. The logic of accountability is that such positions should become further offices of parliament. The bureaucracy will fight tooth and nail to prevent the transfer of the commissioners who are under its control. Are you surprised?

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Anna Rawhiti-Connell
— Senior writer

The 1989 Public Finance Act set out different responsibilities for ministers and the operational agencies which report to them. The idea was that ministers were responsible only for the directions they gave to their departments, while the departments were responsible only for their operational implementation of those directions. But the distinction, still in the Public Service Act 2020, has never really worked. Neither parliament nor the public pay much attention to it. The de jure distinction of responsibilities and the de facto practice of ambiguity enables the bureaucracy to escape the rigorous scrutiny that democracy demands of it.

Do not assume that accountability will always be deliberately thwarted. Sometimes who is responsible is unclear. This is particularly true in large, diverse departments, so that even a chief executive may not know what is going on. Hence the need for smaller more coherent government agencies in which the chief executive can know and be effectively responsible for it. Centralisation is a mechanism for avoiding accountability to the public. 

A key element of the New Zealand system of accountability is the Official Information Act. The OIA creates a public right to access information. It states that “information shall be made available unless there is good reason for withholding it”.

However, since the effect of the act is to increase the accountability of the government – sunlight is the best disinfectant – there has often been a reluctance to release information. Journalists are a central part of the accountability system, using the OIA as an integral part of their responsibility. A 2022 review by the Ombudsman (who is also the parliamentary commissioner for information) found multiple examples of public-sector media teams breaching the section of the law which required reasons. Media teams are failing to give journalists a reason when they refuse to provide information or inform them of their right to complain to the Ombudsman.

The incoming Ardern-Hipkins government promised a review of the OIA in its 2017 election manifesto. In July 2020 the justice minister announced that the OIA would be reviewed. Six months later, his replacement minister said that the review would be delayed until “later in this parliamentary term”. After six years in office the government had not published a review.

A four-year term strengthens the (elected) dictatorship. A liberal democracy requires that any strengthening be offset by the dictator becoming more accountable. If parliament proposes a referendum extending the parliamentary term, it needs first to strengthen its accountability mechanisms. An inability to do so would demonstrate that parliament’s ability to hold the executive to account is too weak to justify a four-year term.

In Open Seas: How the New Zealand Labour Government Went Wrong: 2017-2023 by Brian Easton ($45, Kea Point) is available to purchase from Unity Books

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