ED HUSIC, MINISTER FOR INDUSTRY AND SCIENCE: Thanks for joining us. If I may, I'd like to introduce Robyn Denholm, who's going to be leading our strategic examination of research and development that we're announcing today. Robyn knows how important R&D is for future economic success, as Chair of Tesla, one of the companies, but certainly has demonstrated the value of R&D in growing a firm, and particularly creating a slice within markets that is so important to the future of those firms, and I'll invite Robyn to make some remarks in a moment.

First, I just want to explain the motivations for this examination. Responsible governments think ahead. They think about how economies will look, they think about how jobs will be created, and they do so in a way recognising that today is certainly not going to look like tomorrow.

R&D investment is one of those things that drives future economic strength. Intellectual property, ideas, will drive, sustain, strengthen economies. Ideas, innovation, know how matters, and R&D is something that we should be pressing for in our country and to improve the way we invest in it.

Over the last 20 years, and especially the last decade, our performance has been slipping. There has not been a thorough comprehensive examination of what has happened and how we can improve things. This is particularly concerning for Australia, because we're a scientific powerhouse. Our researchers regularly come up with new know-how that changes the world, not just for Australians but for people across the globe.

One of the key recommendations of the Universities Accord, for example, that was announced by Education Minister Jason Clare, was to look at the way, for instance, research funding is put on a more predictable, sustainable footing. So that's one thing we've asked Robyn and the panel to look at.

We also want to review why our strong performance in science is not translating into a stronger R&D performance. What's holding us back? How can we link up business, academia and government much more powerfully? It's going to be a big job, because there are big, difficult questions to answer, but I'm confident we've chosen the right panel to help drive this examination.

Obviously I've announced Robyn is going to be joined, is going to be chairing the panel, and will be joined by some eminent Australians: Professor Ian Chubb, former Chief Scientist, former ANU Vice-Chancellor, and will be known to many as a hugely powerful champion of our world leading research; Professor Fiona Wood, a former Australian of the Year, whose work to invent spray on skin became well known after the horrific Bali bombings where she treated burns victims in a way that was not previously imagined, and she's still involved in translating top shelf medical research into new products and techniques; Dr Kate Cornick, a well-known figure in the startup world who's had a deep connection with early-stage innovation, and a group that has a big interest in the value of research and development, being involved in a startup of her own, now CEO of LaunchVic.

Now before I invite Robyn to say a few words, I just want to end on this: as I said, governments have got a responsibility to think ahead, have a vision of the nation's future.

This R&D is crucially about that. Australian ideas, our know-how, our ability to get things done, this will be vital for driving future growth, improving the range of jobs that we produce and creating secure, well paid work for people well into the future.

And with that, I might invite Robyn    

ROBYN DENHOLM: Thank you.

ED HUSIC: - not only thanking her for her role, but invite her to say a few words.

ROBYN DENHOLM: Thanks, Ed. So, I am honoured to have been appointed the Chair of this really critical piece of work. I commend the government for actually initiating this independent review to enhance Australia's R&D framework, and it's a comprehensive review.

A robust and forward looking R&D ecosystem is vital to the future of the country, to driving innovation and also for driving and fostering economic growth and establishing Australia as a global leader in technology.

Australia has ambitious goals to become a thriving economy that leverages its greatest assets, our people, our innovation and our extraordinary know how of how to do things. We excel in research, as the Minister has pointed out, and translating that research into critical economic growth, and also development and commercialisation to realise the full impact of that research and our efforts as a country.

So, my objectives for this review is to unlock this immense potential of Australian research by turning it into tangible outcomes that deliver both economic and societal benefits. And drawing on my experience across both the global and Australian ecosystems, I hope to bring Australian business sectors into this review, and I aim to shape R&D settings that enhance our global competitiveness and secure our nation's future prosperity. It's all about the future. Thank you.

ED HUSIC: Thank you. Okay. Folks, I know it's a busy morning, so we'll try and whip through the questions as quickly as we can. Questions.

JOURNALIST: For Robyn, did you speak to Elon Musk before taking up this role?

ROBYN DENHOLM: Today is about our R&D future as a country. So, thank you.

JOURNALIST: Could I follow that question. Your background in research at Telstra and at Tesla means that there's a kind of an obvious question on our minds as we sit here, which is, Elon Musk, at the moment, you work closely with him, he's incredibly critical of the Federal Government at the moment of because of the social media ban.

Do you think that you're in a position where you can be a bridge between the Australian Government and Mr Musk because of his concerns about where Australia's heading at the moment?

You do work with him closely. Can you be that kind of bridge between the two?

ROBYN DENHOLM: So, today's all about the R&D review that the Government has announced. I want to play a critical role in that. I think it's really important for the future of Australia to actually be focusing on our assets as a country, including our huge research environment that we have here.

So for me it is all about investing in R&D so that we can continue to grow as a fabulous country. So, yeah.

ED HUSIC: James.

JOURNALIST: My question, Robyn, I just want to – it would seem that your appointment would focus more on the D than the R. Given that you're saying that we already have some great research in this country and translation has been something of an issue, or translation to impact, would you agree with that assessment, you're focused on the development of stuff that we're already looking at?

ROBYN DENHOLM: If you look at the composition of the panel, there are some pretty impressive Rs on that panel as well. And so, for me it's about leveraging both. But clearly, our research capability are well regarded globally. So it is translating that research into development and to commercialisation, which is my background.

But more importantly, there are no constraints on the committee's purview, actually looking across the board in terms of what we can do better as a country, leveraging what others have done globally, but also what we do really, really well as a core competency here in Australia.

JOURNALIST: The R&D tax concession has been around for decades, but R&D has not actually improved much over decades. So is that fundamental piece of the tax system flawed or broken, just not doing enough?

ROBYN DENHOLM: No. I think R&D tax credit has been an important pillar in terms of R&D in Australia. There are a lot of startups in Australia that wouldn't have started in Australia without that concession.

But having said that, this review is comprehensive. It looks at - we aim to look at a broad range of things, broad range of policy settings that actually will help us enhance the amount of R&D that we're doing.  

But R&D is all about investment, and the difference between spending and investing is actually the return. So how do we generate a return on the R&D that we're actually spending and increase that R&D so that the future of Australia is as bright as what it has been in the past.

ED HUSIC: And if I can emphasise too, again, this is not - while I appreciate the question with respect to the R&D tax incentive, this is about fundamentally looking at everything that has to do with R&D in the country.

It's not an exercise in saying, "You have to do better" or finger-point and blame-shift. I think there's a recognition that we all need to perform much better, and I think it will be important for us to work together on that front.

The different elements that make up our overall system will be looked at. I want this it be wide-ranging, but I also don't want us to make presumptions at the start, assumptions about where we get to, because clearly, we can do better.

The R&D tax incentive, which we're proud on our side of politics to have championed for many years, did play a big part in lifting R&D investment. I think the critical year, David, where things turned was about 2008, post GFC, and it's just kept sliding.

And we need to find out across all those things what's important, and critically to the way the panel's been set up is, obviously, we want industry to be able to express themselves clearly about where we should head, but also tap in to the Ian Chubbs, the Fiona Woods, and also, from an early-stage perspective, the Kate Cornicks, in terms of early-stage innovation, and be able to cover the board, cover the field, as it were.

JOURNALIST: Australia spends about 1.7 per cent of GDP on R&D. I think the OECD averages 2.7 per cent.

ED HUSIC: Thank you for closed captioning my pain.

JOURNALIST: I mean I guess my question is, the cost of bridging that gap.    

ED HUSIC: Yeah.

JOURNALIST: - our guess is tens of billions of dollars a year. Who does the heavy lifting there? Is it government, or is it business, and if it's business, how do you do it?

ED HUSIC: Well, again, if I may, James, I'll just emphasise, we are at the start of the process, not the end. We've got a bit to go between those two poles.

We want people to have a sense of ownership that have got an interest in this area, to step forward and put forward their ways about what hasn't worked well and what we need to do, and at the end of it we'll examine the type of investments required.  

I've been very particular, if I can emphasise to you, you know, there'd be - I get a lot of free advice in this role, which I gladly welcome, but one of the things has been for us to just invest right now on it. I have not wanted to throw money at this problem. I want an evidence base that's developed through this type of process to say how we can all contribute. Because there is a role, in particular, if you look at, for instance, the makeup, as you would be closely familiar in your role, with respect to business expenditure on R&D, higher ed, and government, higher ed does really well, the other two in terms of business and government, we need to look at what we do in that space in terms of investment, and how that gets made up will be really important.

So, watch to the end of the review, and we'll at that point look at what the panel comes up with.

SPEAKER: Last question, guys.

JOURNALIST: Minister    

JOURNALIST: Mr Husic, on a separate issue, some comments you made on radio this morning about fast-tracking Palestinian   sovereignty for Palestinians. Is that Labor's position, to fast track the sovereignty - the recognition of Palestine as a state?

ED HUSIC: Before I answer that, can I just ask, is there anything else on R&D? Okay. I'm going to answer this very quickly. Jade, do you want to throw it in, and I'll try and answer both very quickly.

JOURNALIST: Oh, Minister, just on a separate issue as well, Australia Day celebrations have been banned at more than 200 pubs and bars across Australia. What is your reaction?

ED HUSIC: Okay. So first, we've talked about Palestinian sovereignty, we've supported it and said that we do believe a two-state solution will be important to peace in the region, and also should give a sense of security to people, Palestinian and Israeli, that they've got their own country, and their ability to determine their future.

I don't really - I mean, obviously, we are, and there are a lot of us that are keen to see the establishment of a Palestinian state as quickly as can happen, and so I think that reflects that enthusiasm. I wouldn't be too literal in terms of what I've said.

Finally, on Australia Day, we've said for ages, we understand the significance, historical significance that Australia Day plays in the country and recognising it’s an important milestone, we want people to be able to celebrate Australia Day, while also appreciating that in particular our First Nations people look at the day from a different lens, but we can celebrate contributions one and all, and that's what we want to continue doing. Okay. Thanks everyone.