University bosses warn research freeze will threaten 1700 uni jobs

THE nation's leading university vice-chancellors have warned Julia Gillard that any freeze to research grants could cost up to 1700 jobs.

Julia Gillard

THE nation's leading university vice-chancellors have warned Julia Gillard that any freeze to research grants as part of the budget savings drive could cost up to 1700 jobs, increase sovereign risk fears among international investors and spark a brain drain of leading researchers going overseas.

A letter to the Prime Minister signed by the vice-chancellors of the Group of Eight universities, obtained by The Australian, expresses concern that the government "may be considering a freeze on government grants from research funding bodies such as the Australian Research Council and National Health and Medical Research Council".

The Group of Eight letter warns that it might lead international companies to take their innovation effort overseas and it runs counter to research funding increases in the US, in spite of difficult economic times, and the ring-fencing from cuts of research funding in Britain.

"Cuts of this magnitude would result in the order of 1700 immediate job losses," the letter says.

It warns that on the assumption each grant supported a single researcher, a freeze on funding would lead to a loss of 950 positions supported by the ARC, 450 positions supported by the NH&MRC and 300 positions supported by the Co-operative Research Centre program, which links research to the private sector.

It warns such a move would put at risk millions of dollars that would otherwise support research in universities, and that preventing the research bodies funding any new projects next year would slash about $230 million from universities and research institutes "or more than $1.3 billion if the decision were to cancel rather than just postpone new funding commitments".

The Australian reported last month that thousands of federal grants promised to groups ranging from community bodies to universities were at risk as the government's razor gang sought billions of dollars in budget savings to offset the sharp downturn in revenue.

The Gillard government imposed an across-the-board clamp on an estimated $2bn-a-year in federal grants after cabinet received its latest updates on the budget position.

The Group of Eight comprises the universities of NSW, Melbourne, Monash, Sydney, Adelaide, Western Australia, Queensland and the Australian National University. Their letter warns it takes years of training to produce quality researchers. Those who were not active lost their currency and became less effective. "Hence, researchers whose contracts end are likely to seek employment overseas or will take up alternative employment," the letter says. "In either case, Australia will lose some of its best talent; a waste not only of the opportunities they might have created but of the considerable investments, particularly by your government, made in developing their world-class expertise."

The letter warns funding freeze would have the compromise Australia's standing with international competitors and collaborators.

"The world does not stop still even if Australia decides to do so and once a research lead is lost, it is difficult to regain," it says. "Moreover, world class research builds on international co-operation and robust relationships require trust, confidence and continuity - none of which can exist in a stop-go funding environment. The uncertainty created by a freeze would encourage even those researchers not at immediate risk to look for opportunities in other countries but there would be other, broader consequences."

Asked about potential cuts to grants by opposition health spokesman Peter Dutton, Wayne Swan moved to turn the attack back on the Coalition.

"The shadow minister has the hide of a rhino," the Treasurer said. "He comes in here and wants a guarantee from me that there will not be cuts in certain areas when he has said nothing about the savage cuts in Queensland to health and education by the Newman government - absolutely nothing. He has been completely mute. The reason every single one of those over there have been mute about the cuts in NSW and Queensland is that they have the stamp of approval of the Leader of the Opposition."