25 July 2002
CRIs Not More Concerned About Profitability Than The Public Good
The co-leader of the Green Party Ms Jeanette Fitzsimons, spoke in a debate on this morning's Radio New Zealand nine to
noon programme. The topic involved discussion on the appropriate role of Crown Research Institutes (CRIs).
Ms Fitzsimons referred to "...Government science structured as a corporation under an Act which tells them they must be
more concerned about their own profitability than about the public good. I mean they are funded largely by taxpayer
money..."
The Association of Crown Research Institutes represents the CRIs. It is not our intention to become involved in party
political debate. However, it is important to correct a misunderstanding in Ms Fitzsimon's statement.
1. Funding The nine Crown Research Institutes are owned by the Crown. They derive their revenue from contracts with
Government agencies, commercial research contracts and consulting activity.
Collectively, CRIs receive about 55 per cent of their revenue from the government's main science purchase agency, the
Foundation for Research, Science and Technology. Individually, a number receive less than half of their revenue from the
Foundation.
2. Profitability The Crown Research Act 1992 does not tell CRIs to be more concerned about profitability than about
the public good. Indeed, the Act explicitly states the CRIs' purpose to be research, undertaken for the benefit of New
Zealand.
The Act sets out the principles by which CRIs have to abide. These are: to pursue excellence in all its activities; to
comply with any applicable ethical standards; to promote and facilitate the application of the results of research and
technological developments; be a good employer; and exhibit a sense of social responsibility.
The Act requires CRIs, in fulfilling their purpose, to "operate in a financially responsible manner". Financial
responsibility is defined as providing an "adequate rate of return on shareholders' funds".
Ends