Hansard transcript
2024-25 Estimates for Vote Business, Science and
Innovation (excluding appropriations related to
the Retail Crime Subsidy, the Health Research
Fund, and New Zealand Trade and Enterprise)
Economic Development, Science and Innovation Committee
17 June 2024
Members
Dr Parmjeet Parmar (Chairperson)
Dan Bidois (remote)
Hon Casey Costel o
Reuben Davidson
Hon Willie Jackson
Hon Dr Deborah Russel
Tanya Unkovich
Dr Vanessa Weenink (remote)
Scott Willis
Witnesses
Hon Judith Collins KC, Minister of Science, Innovation and Technology, and Minister for
Space
Ministry of Business, Innovation and Employment
Carolyn Tremain, Chief Executive
Robyn Henderson, Acting General Manager, Science, Innovation and Technology
Danette Olson, General Manager, Science System Investment and Performance
Prue Wil iams, General Manager, Future Research Systems
Cal aghan Innovation
Dr Stefan Korn, Chief Executive
Parmar
Thank you, Minister Collins, for coming to the select committee. We have
the Ministry of Business, Innovation and Employment, and I believe we have
Cal aghan Innovation here as wel . Thank you for your time. We have 90
minutes—thank you, Minister. We don’t have a structured agenda. I also note
that you have sent a PowerPoint presentation just before, this morning. As
the letter stated that the introductory remarks need to be short, I just wanted
to know if this presentation is part of your introduction?
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HANSARD TRANSCRIPT: 2024-25 ESTIMATES FOR VOTE BUSINESS, SCIENCE AND INNOVATION
Collins
Yes, it is. Thank you very much. First, I’d like to acknowledge the chair, Dr
Parmjeet Parmar, and the members of the committee. Lovely to see you here.
I’m pleased to be here as the Minister for both Science, Innovation and
Technology as wel as the new Space portfolio. I’m joined here today by the
Secretary of MBIE, Carolyn Tremain, on my right, and her team of SI&T
officials. Robyn Henderson is with me, and she’s on the left. I’m also joined
by Stefan Korn, the chief executive of Cal aghan Innovation. As the Minister
of these two important portfolios, I’m excited by the opportunity in front of
us to ensure that our investment in science innovation can underpin future
economic growth and that we are leveraging our advantages in the aerospace
sector.
I wil start my opening comments today by outlining how I’m approaching
both these portfolios. My office has prepared a presentation for the
committee to help outline this and to go along with the presentation. To
deliver the economic growth we need to sustain the quality of life for all New
Zealanders, we must ensure that our science innovation system is optimised
and focused on the right things. Since becoming the responsible Minister six
months ago, I have been interested in ensuring that our investment in science,
innovation, and technology has sufficient focus on tangible economic
outcomes alongside the environmental and social outcomes it also serves.
Our scientists produce amazing work. With me is not actual y a lunch box
but it is a Lumi drug detection kit. I don’t propose actual y testing anybody
for it. I’m failing that test right now. If you can open it up—there you go,
Robyn. It can currently detect P, or methamphetamine, ecstasy, MDMA, and
cocaine, and results appear on the app within seconds. It does, however, need
a degree to get into it! Someone will assist—awesome. This device is world
leading, and it won the prestigious Excel ence in Forensic Science award at
the 2023 World Police Summit in Dubai. Here it is here.
Now, see, you take this—as I said, they won’t let me have an operating one,
so I can’t test you—and you have your drug in here, or what you think is your
drug. You don’t have to take it out of the plastic, which is the most innovative
thing, which means that you can—from an evidential point of view, it is
actually very sound. Then you just pop it on there and up it comes with the
result. So that’s ESR—one of our CRIs. They actual y invented that. So this
is a world-leading invention coming out of one of our CRIs—and with a
foolproof box!
Even with al this amazing work, the status quo simply cannot go on. The
CRIs, or Crown Research Institutes, and Cal aghan Innovation are not
performing financial y, and the sector in general is not fit for purpose to
deliver the value that New Zealand needs and that our scientists deserve. To
get our sector performing, the Ministry of Business, Innovation and
Employment has recently convened a Science System Advisory Group led by
Professor Sir Peter Gluckman. This group has been tasked with developing a
set of evidence-based recommendations to strengthen the science,
innovation, and technology system and ensure its future success. This group
wil be thinking through a range of different issues with our current science
and innovation system.
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On top of this work to streamline the SI&T system is my other key piece of
work to pass enabling gene technology regulation and establish a gene
technology regulator. This wil bring about numerous benefits for New
Zealanders by giving our country access to new cancer treatments, emissions
reduction technology, and biosecurity tools.
Before handing over to the committee, I would also like to talk briefly about
my Space portfolio. I’m very proud to be the first Minister for Space, and I
see huge potential for New Zealand in leveraging our existing strengths in
this high-growth global industry. New Zealand punches above its weight as
one of only a handful of countries in the world with space launch capabilities
and as the fourth-most active launch country over the past year. Just to give
you an idea, this is the size of what satel ites can be now—that still have
amazing things happening in them. Most of them are a bit bigger than that,
but not that much bigger. So it’s quite extraordinary what can happen.
The potential here is immense. The global space sector is predicted to be
worth over $1.8 trillion per annum by 2040. New Zealand’s 0.27 percent
share of the global market was worth $1.75 billion in 2019. Taking advantage
of our natural and policy advantages, we could increase our global market
share. A New Zealand sector worth $10 bil ion a year is conceivable within
the coming decade. I’m working with my colleague the Hon Simeon Brown,
as the Minister of Transport with oversight for the Civil Aviation Authority,
to ensure that our regulatory framework for emerging aviation is enabling and
supportive of new innovation in the aerospace sector.
I’ve also recently introduced the Prime Minister’s Science Prize, along with
the Prime Minister, to help attract new talent to the space sector. Across both
these portfolios—Science, Innovation and Technology, and Space—I want
to acknowledge the significant contribution that our businesses are making
to our economy and the intent that I have in these portfolios to back this for
future expansion and growth. We have a world-class research sector, with
leading academics in a number of important fields. I look forward to working
with both research and industry communities over the coming year to
implement the much-needed reforms to bring our SI&T system into the 21st
century, to enable it to underpin and drive our future economy. Happy to
have some questions.
Parmar
Thank you, Minister, for that overview.
Russel
Thank you, Chair. Thank you, Minister. It’s a fantastic field to be working in
and to have the oversight on. I’m just going to note in passing that that
wonderfully innovative drug detection kit won a prize in 2023—so, clearly, it
came out of CRIs as they were. So they are doing some great work already.
Collins
And we can do better.
Russel
Indeed. Minister, you and I both enjoy a similar delight in words and the use
of words. I think “lessons” versus “learnings” is one of our favourites.
Collins
Ah, yes, I know! It drives me bonkers.
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Russel
Indeed. But I just want to note that this portfolio was previously named
Research, Science and Innovation. And under this current Government, it’s
shifted through to Science, Innovation and Technology. So it looks, on the
surface, like a de-emphasis on research and more pushing towards the
innovation and technology sector. Is there a reason?
Collins
Wel , I think it’s just because these portfolios don’t normal y have more than
three names. So that’s all. I mean, the science, research, innovation, tech—
the previous Government didn’t have a Minister for technology, either. And
I don’t think the previous Government would want to say that it didn’t care
about technology. The fact is, you have to have three words, apparently,
otherwise it causes conniptions!
Russel
OK. Well, we’ll work on that one.
Collins
We worked on that one.
Russel
Look, Minister, you have signalled—and it’s a pretty broad-ranging document
you’ve brought into this discussion and a pretty broad-ranging change to the
way our science system is set up in New Zealand. There was an extensive
green paper and white paper process followed through under the previous
Government with the Te Ara Paerangi Future Pathways approach, but that
seemingly has been set aside and this new, as yet unspecified, approach
adopted instead. Can you tel me why you thought it was better to set aside
al that work and do something completely new instead of building on what
had already been set in place?
Collins
Yes, I’m happy to answer that. Look, I don’t wish to cause offence, but I
thought that that paper wasn’t worth the paper it was written on, and I say
that primarily because I was looking for some substantive change. There was
almost nothing about gene technology. There was nothing about addressing
the system as it is. It did not deal with things such as the ridiculous situation
we have at the moment where scientists in seven CRIs and Callaghan and
universities are often competing for the same research money for the same
scientific areas, which is a total waste of their time and totally debilitating. I
actual y thought it was a missed opportunity.
Very early on when the then Minister, Dr Ayesha Verrall, became the
Minister, I approached her and said, “Look, would you like us involved in
this? Because we’d like to be part of it so we can talk about how we need to
change the system.” And she said that I could consult like every other
person— I could make a comment—and that was about it. Look, you know,
there’s a reason we’re talking about these things now, because I actually want
to be able to involve this committee in some of that thinking that we’re
waiting for from the report. I expect we want to be very ful with saying to
you, for instance, and other members of Parliament who are interested in this
area, “This is our thinking on it. What do you think?” So that you actual y
have an input, because there’s no point having a system set up that changes
with every single Government change. So it’s a very important thing for the
future that we do that.
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Russel
OK. Thinking still more in this space, about something that was going on
under Te Ara Paerangi, was a little bit of an emphasis on the value of research
and, in particular, on fundamental research. I noticed that in this current
Budget there is no increased funding for the Marsden Fund, and similarly,
over in the universities, which of course impacts on this, the PBRF has been
halted and funding has been continued just at existing levels. So it looks rather
as though funding for fundamental research has been frozen. And, of course,
in effect, with current economic conditions that does mean it’s effectively a
cut in funding for fundamental research. What do you see as the value of
fundamental research in the science system?
Collins
Well, clearly, fundamental research is extremely important, but I’ve been
looking at what Ireland’s done and looking at what Singapore’s done, and
what I’ve seen is where research is—obviously, you need fundamental
research, as in terms of, say, the public good research, but we also need to
have research that turns our scientists into knowing that their work is actual y
going to an end, which means they can invent things, that they can have some
share in the proceeds of that, that we can protect our intel ectual property,
that we can also think more economically about what science and research,
innovation, and technology can do for us.
I mean, our share of the Budget is, what, $1.2 billion. That is not to be
sneezed at. It’s a big chunk of money. And, of course, it hasn’t gone up yet,
and the reason is, of course, we don’t have our new science system in place,
but also, it’s real y important we get those fundamentals right. But I’m not
going to stand back and have our scientists al competing for the same money.
That is just ridiculous when we have that and that’s what’s happened. So we
just need to fix that, and that’s one of the things we’re trying to fix. But, while
you’re fixing it, you can’t pour more money into it.
Russel
Right. I take your point. What I’m hearing from the sector, of course, is a
whole lot of uncertainty, and that’s unsurprising, but that uncertainty—and
coupled with extensive public sector cuts—is creating real anxiety and a
whole lot of people who say that that makes them question whether or not
there is a place for them to do science in New Zealand. When do you think
people in the sector wil have some more certainty about what the sector is
going to look like?
Collins
I think once we get the report through from the Science System Advisory
Group and Cabinet has had a look at it and decided what it’s prepared to do.
Also, I think, too, once people realise things like scientists have been leaving
New Zealand for years, from things such as biotechnology not being enabled
in this country. Australia is on to it. The European Union is on to it. These
are the sorts of things that are going to make a big difference. And I think
there’s a lot of scientists who are going to see that there’s a real point in them
being here.
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But we do need to understand that there is always change, and change does
bring about uncertainty, but it also brings about opportunities. There’s some
of our scientists graduating with their PhDs looking for work, and they may
well find that the new system, once it’s put in place, will actually have quite a
lot in it for them. I expect that there wil be quite a lot around innovation,
and it’s just the fact that that’s where we need to be. If I’m looking at very
successful countries in this, like Ireland and Singapore, they’re not holding
back on what they do, but they’re not only doing what they once did 30 years
ago, which is what we’ve been doing.
Willis
Thank you, Minister. And I note your point about stability. I think the
Parliamentary Commissioner for the Environment has also talked about the
need for stability in funding, and we’ve seen that the National Science
Chal enges have come to an end and that funding, rather than being
reallocated into the system, has gone. It seems to have been taken out of the
system. So I’m wondering, firstly, what is the risk? It seems to create
uncertainty and a lack of stability to the workforce, to the capability that we
have within the sector, when we lose that funding and we lose those
programmes.
Collins
Look, I understand, Mr Willis, that it is real y hard for people going through
uncertain times, but what I’d also say is the Government is not the only
funder of science and research, and that much of the research and science
developed in this country is from the private sector. But we cannot continue
down the pathway, which the National Science Chal enges ended up doing,
where we had—at one stage, I think it was seven of the CRIs all competing
for similar funding on a similar issue. It’s simply not acceptable, and I’ve had
scientists say to me that they’ve had to become experts in trying to put
funding proposals together, and al slightly tweaked differently depending on
which fund they’re applying to. But I think what you’l find is that even
though that money is not there in this Budget, the Science System Advisory
Group wil come up with some ideas around how we handle that research
funding and what is the gatekeeper, rather than multiple gatekeepers—how
do we deal with it? And so these are some of the things we’re trying to look
at. I think it’s really important that our scientists have a clear path forward,
which is why this report is due relatively soon. We’l have it in the next few
months, and we’l be able to actually give people some certainty.
Willis
The National Science Chal enges have come to an end, clearly, but there are
the Centres of Research Excel ence, and it looks as though that’s an
appropriate place. But if we’ve taken the resource out of it and we’re not
putting it back into that research, do we risk a bleed? Do we risk losing bright
minds?
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Collins
I think we’re going to have some scientists who choose to end their careers
with us, but we’l have plenty of other scientists wanting to start their careers
with us. But remember, too, that much of research funding comes from the
private sector, and so many of our successful industries help fund our
research sector as wel . So we just need to be aware of it. It’s not only
Government money, as in taxpayer money; it’s also the private and industry-
led groups. The fact that we have, for instance, 25 industry research institutes
tel s me that the current system is not working for them, otherwise they
wouldn’t be funding 25 separate industry research institutes. It’s real y
important that we look at the whole sector.
As to money that has been lost to the Science Challenges, it was only ever a
10-year programme. It was only ever funded for 10 years. It’s not a cut,
because it was never expected to continue on after that. In terms of what
other Budgets might do in the future, that’s very much in the future, but we’re
not going to be pouring money in until we sort the sector out.
Bidois
Thank you, Minister, and to your team. Just a supplementary on this. So, yes,
there has been some cuts, but I also noticed there’s some increase in funding
for various funds—for example, the Endeavour Fund, the Strategic Science
Investment Fund; I’m looking at the Catalyst Fund, and so forth. I’m
wondering if you could talk us through what’s the rationale for the increases
there? What do you hope to achieve, and how are we going to measure
success for those increases in funds?
Collins
I’ll ask Robyn to because she’s got a very detailed knowledge of it.
Henderson
Yes, thank you. So, in Budget ’24, we were able to reprioritise some funding
from within the Science, Innovation and Technology portfolio. That funding
was able to be allocated to some initiatives that were otherwise going to have
to come to an end—that funding had finished; they were on time-limited
funding arrangements. So some funding has gone into supporting ongoing
work around an infectious diseases platform. There’ll be $42 million going
into that, starting next year. The national hazards and resilience platform,
which has been work that’s been under way since, I think, about 2009, and it
was picked up in one of the National Science Chal enges—that work will be
able to continue with this funding of $40 million. We were also able to
continue the MedTech translator. This is an initiative that is in the health
sector. It’s very much around enabling some of our health-tech companies to
develop their ideas and apply them in a healthcare setting.
Similarly, the HealthTech Activator, which is work that Cal aghan Innovation
have been doing over the last few years—that didn’t have ongoing funding,
so we’ve been able to keep that going. And that wil work, again, with quite
early stage healthcare health-tech companies to grow that industry. Also
funding into the Product Accelerator. This is an initiative that is based in
Auckland University, but it works with lots of other universities around the
country and matches researchers with different manufacturers and helps
them solve the real-world problems that they’re grappling with as a business
and links them into the particular research expertise that could help solve
those for them.
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And then other initiatives are Space Institute, also based at Auckland
University; funding for the Prime Minister’s Chief Science Advisor—the new
appointment wil be announced on that soon; and then also some funding
into the Strategic Science Investment Fund, and that wil be useful for when
the Science System Advisory Group reports back with its recommendation.
Parmar
I just want to make everybody aware, all the witnesses and the Minister, if
you see members on line, as we are running a hybrid system—if you see
members with their electronic hand up and their one finger, two fingers, that
is the indication for primary or supplementaries.
Collins
I am so pleased. As long as they get those around the right way!
Weenink
Thank you, Madam Chair, and thank you, Minister. Earlier this year, along
with yourself and some other people, I attended a meeting where the Horizon
Europe initiative was brought up. I was just wondering how we’re going to
be leveraging the opportunity through that initiative.
Collins
Yes, wel , thank you for that question. The Horizon Europe initiative was
something that the previous Government was able to put in place last year,
and we completely supported that from Opposition, looking to the best
interests of New Zealand. And, to date, around 90 New Zealand partners
have been involved in consortia applying for Horizon Europe funding. So
far, we have a relatively high success rate of 23 percent—so that’s 12 out of
the 51 projects with funding decisions. At this moment, it’s going very wel .
Recently, I was at the OECD on Science meeting. I shouldn’t tel you the
name of the country, but there was one Minister of science from a country
who came to me and said she wanted to know how—oops, she/he; any
gender at all—wanted to know what our feelings were about the success of
New Zealand joining into Horizon Europe. And I said we’re finding it very
successful, because our scientists want to work with scientists from around
the world, and getting them into labs or being part of even virtual labs in
consortia actual y helps them hugely, and they can stil live in the best country
in the world.
Willis
Thank you, Minister, again. I think we can all agree that the creation of a
scientifically literate public is essential to a healthy science ecosystem, but
we’ve had cuts to MBIE in particular, I’m thinking about, that created the
loss of Unlocking Curious Minds funding, which was outreach—it was
science outreach going out into the communities. And we’ve seen the great
exhibition that Tūhura Otago Museum put on recently where the containers
would go out into communities to help build awareness in the communities.
Do you think there is a need to relook at the way in which we build more
scientific understanding in our communities, and where the budget lines
might be found for that?
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Collins
Well, I think, speaking hypothetical y—because, obviously, I can’t talk about
what might happen in future, but what’s real y clear to me is not enough
people in our country understand the crucial role that science and technology
has in the fact that we are an agricultural and a horticultural giant. We’re a
giant because of science and technology and, obviously, our willingness to
accept science and technology. But that wonderful place needs to be—also,
we have to understand that we have something else to sel to the world, and
that is our scientific expertise and our technological expertise.
So we have to stop thinking that we’ve got it all made. It’s like in business: as
soon as you think you’ve got it al sorted, then, actually, probably someone
else has surpassed you. It’s the same in politics, frankly, as wel : once you
think you know it all, you’ve actually lost the plot. So it’s really important. I
think we do need to do a lot more talking up science and tech—the
innovation side, the research side. We need to be constantly talking about the
frozen container shipments, al these sorts of things—basically, invented
through New Zealanders taking risks and taking chances and looking at the
science that they knew then. These are real y important things, and we’re just
holding ourselves back.
If I can give an example—and I’ve talked to a lot of audiences, and you wil
too; not necessarily science audiences, just people about various things. And
I talk to them about the fact that we have, in Scion, one of our Crown
Research Institutes, the science to end wilding pines, and that science can’t
be used at the moment because we don’t have a biotech-enabled regulator to
enable this to be even field trialled. This would mean that pines, instead of
dropping pine cones—therefore their seeds everywhere—would not drop
pine cones and their seeds everywhere. Imagine what a wonderful product;
we could then sel that to the world. And, by the way, that could help other
countries not have wildling pines everywhere, ruining our biodiversity and
actual y just ruining our beautiful places al around Central Otago and other
areas.
So these are some of the things we could do, but we need to be talking it up
and tel ing people what that means. We tend to talk about science and
sciences are good, which is right, but, actually, most people need to know
what’s in it for them. What are we going to do for them? It’s like the CAR T-
cel therapy being undertaken at the Malaghan Institute, which is actual y one
of my favourite things at the moment, because it cures cancer using
someone’s own cel s. I mean, it’s amazing: stage 4 breast cancer cured in the
woman who had this CAR T-cel therapy, which at the moment was able to
be used, given special permission for her to be able to have it. If we could
have that available to people in our health system, it’s a lot better than pretty
tough drugs that are having to be given to people, with chemotherapy.
We’ve got some solutions, but we need to talk about what’s in it for the New
Zealand public and also the world—great inventions to sel , so we’re not
known only for our wonderful kiwifruit and our wonderful dairy products
and our wonderful meat, but, actually, for our wonderful science and health
tech, which I just love, too.
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Willis
And do you think—because we’re also seeing cuts across the Public Service,
and in NIWA it looks as though the cuts are leading to the loss of 10 of our
gold-plated climate scientists. Now, it does look—and to your point that we
do need this expertise, and we need to be showing leadership, and we
particularly need climate scientists who understand the specific situation we
face in Aotearoa, particularly for our agriculture, for our primary sector, do
you think we are in a good place when we are losing some of our brightest
minds? And what can we do to ensure that those losses aren’t there, because
it’s hard to build up that capacity? That’s not something you can just hire.
They’re not cogs; they’re bright minds.
Collins
Wel , I think one of the things to always bear in mind is that decisions about
which staff are let go or whose job changes are for those boards and for the
chief executives of the CRIs. I can tel you, though, that part of our climate
change response needs to be around what the solutions are, and the solutions
cannot be destroying our agricultural and horticultural sectors. They have to
be about solutions that enable those sectors to continue the good work
they’ve been making over the years. Those are the sorts of things. So I just
think we need to—I can’t get into the detail about individual scientists or
parts of it, because those are absolutely to the board and the chief executive
of those CRIs, including NIWA. I also feel that we just need to look
constantly at what’s the solution, because we’ve got plenty of people, by the
way, who can tel us the problems; we need solutions as wel , and I’m sure
that those scientists wil find other work in the system as wel .
Willis
And I’ve certainly been talking with both older and younger scientists
concerned about the changes in the sector, and a student who works on
climate change adaptation and mitigation wrote to me and said that the
Government’s decision to reverse the $450 million lifeline given to the
science sector, Wel ington Science City time, meant to create a Wel ington
science city, “real y ruined any hope I have of being able to stay in New
Zealand”. This is a massive funding opportunity that would’ve fostered the
scientific community in New Zealand and helped us retain our most highly
skil ed young graduates and young people. The money simply isn’t there.
Collins
Oh, you’re talking about the Gracefield project?
Willis
This is the Wellington Science City. So we’re seeing students who are
finishing off their PhDs who no longer see a future in New Zealand, in
science, because the funding is drying up or it’s not in the places that they see
are crucial. And I wonder, if we’re thinking about stability, it looks as though,
instead, we’ve created instability.
Collins
Look, I appreciate you reading that out fully. The student seems to have been
misinformed, because even though we’re not going to fund the Gracefield
new project, the reason for that is that, number one, most of that money was
going to buildings, and it was only part of what was needed. So that was really
clear from Callaghan when I became the Minister: that there was a major
financial problem there. And so the $400 million was only the start of it. In
fact, Stefan might be able to help me with this. Do you want to just come up
here, Stefan? Stefan Korn, the chief executive of Callaghan. So, Gracefield?
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Korn
There was about $200 million ring-fenced from the $450 million for
infrastructure improvements at Gracefield. So most of this does need to go
into infrastructure. I see the point about, for scientists to be able to work,
obviously they do need fit for purpose infrastructure and equipment, but also
one thing that I would highlight, which was actual y part of Wel ington
Science City as well, was the mobility of the workforce. I think, for a lot of
our younger scientists, I would encourage them to also look at—you know,
it’s not only research jobs in Government; there’s research being done a lot
in industry, and I think what we need to do is to encourage them to say, “Let’s
not set up your career so that you have to rely on the Government making
all of these things available, but you can actually dip in and out, go between
businesses and public sector, and al that.”
Collins
Universities too.
Korn
Yeah, universities as wel .
Collins
Some of the real y—I don’t know, Madam Chair, if I can just sort of throw
this in here, if your committee might be interested into having a look at some
of the research that’s going on at the moment. If you go to the Robinson
Research Institute, businesses like OpenStar and others—really exciting
work. And I think, if you want to have a field trip, we could help organise
that.
Parmar
We will discuss that.
Collins
I’m thinking also Auckland University. I’d real y love you to be able to see, if
you haven’t already, the aerospace institute there, where there’s a mission
control and they’re involved in the Rocket Lab launches, and it’s very exciting
but also incredibly cutting-edge stuff. And, also, the other part there would
be the health tech—what’s it called, the advanced—
Unidentified Biological institute, ABI.
Collins
ABI—the Auckland biological institute. That is involved in some incredible
health tech stuff, like using science and tech to avoid operations and al sorts
of things. It’s just amazing stuff. So I think it would be quite good. At the
moment, this is going on in these different places, like the universities and
the private research institutes, and the CRIs are doing some great work here
and various other parts, but there’s not a lot of cohesion. That is really what
Sir Peter Gluckman’s group is looking at: how can we do this more? We don’t
really have anything that’s dedicated to things like AI, for instance; quantum;
these sorts of biotech, either. So how do we have our system that’s fit for
purpose for not only our older technologies, our older needs, but our newer
needs? And I think that’s one of the things we’re trying to get right. So it’s
going to be—you know, any change is always chal enging for people, but it’s
also, I think, enormous opportunity for us to deliver a lot more for our
people—a lot more.
Russel
Thank you, Chair. I want to go back to the Endeavour Fund, because I’m
confused by some of the numbers here. In this current year, we’ve seen an
increase in the Endeavour Fund—the funding that’s gone to it—of about—
Unidentified Nine million.
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Russel
Something like that. Yes, it’s gone from about $236 million to $245 million,
or something like that. But then if I look in the return of funding for—
Collins
I’ve got a specialist for this one—so off you go!
Russel
If I look at the return of funding for science, innovation, technology—so I’m
looking on page 69 of vote business, science, and technology. And we look
down there and it says in the—this is the return of funding; the money going
back into the Crown. It says, in the 2027-28 year, there’s $9 million going
back. So it looks like $9 mil ion on one hand this year and then $9 million
back in future years. The same thing has happened with the health research
fund, but I know the Minister is talking to the Health Committee about that.
The Marsden Fund: there’s $3 million going back off the Marsden Fund in
that 2027-28 year, and so on it goes. So, over time, there’s a pretty significant
return of funding. If you could just talk me through that, it would be real y
helpful.
Olsen
Sure. There’s two things happening with the Endeavour Fund. The $9.5
million that you’ve pointed out—or $9.7 million, I think it might be—in
2027-28—that was cost savings in the current Budget process. So that was
also the Marsden decrease that you’re referring to. So Marsden and
Endeavour have taken small cuts in 27-28 as part of Budget ’24. But the other
thing that’s happening—so, you know, there was a cost savings—
Russel
So we are taking from the future in order to fund today? That’s the way I’m
hearing it.
Olsen
No, no, no; there’s a separate thing, and I’l explain the phasing in a minute.
The first thing is Cabinet ’24 made a decision to reduce funding for
Endeavour in the year 27-28. That’s just a decision of the baseline funding
into the future. The other movements that you’re seeing in the Endeavour
Fund is because we need to phase the funding each year. So the Endeavour
Fund funds two sets of initiatives: Smart Ideas, which are for up to three
years, and research programmes, which can be anywhere between three and
five years. And the amount of funding for research programmes is quite
variable. So that we can have a funding round every year of about the same
amount of money—so currently about $39 million—we have to phase the
funding. We sometimes move money between financial years to ensure that
we’ve got enough money to pay for the contracts that the Science Board
enters into each year. So most of that is just a movement of money to align
with contract payments.
Russel
OK, but can I see the—is this shown over the four out-years anywhere in
these documents?
Olsen
Not to the degree of granularity, I think, that you’re looking for, but it’s
something we could get and give to the—
Russel
It would be useful, because otherwise I’m not going to—because it does look
like just—it’d be good to get that granularity—
Olsen
It’s simply about phasing to align with contracts.
Collins
If we could get that to the committee?
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Olsen
We can do that.
Russel
Thank you. That would be great. And the same thing on the Marsen Fund as
wel : $3 million down in—
Olsen
Wel , that was a Budget ’24 decision.
Russel
OK. So it’s not just that it’s continued; it’s actually $3 million down in the
out-years?
Olsen
Correct.
Russel
OK. All right. Thank you. There’s another few that are like that as wel , but
I might come back to you post the hearing—
Parmar
All right, we’ll go to Hon Willie Jackson.
Jackson
Minister Collins.
Collins
Hello.
Jackson
How are you? I’m really interested in the relationship and your view in terms
of Māori going forward. I don’t real y see anything, Minister, but I know that
there is some history there in terms of National and Māori and partnerships
going forward. Where do you see that going?
Collins
Wel , actually, thank you. I accept that the National Party has been a great
partner with Māoridom over the years and has delivered more than many
others. I think it’s real y important, for instance, that we look at how we
enable and encourage Māori, particularly at school and at universities, to take
up careers in science and maths, and that the best way forward for Māori is
for young people to be at school, active, interested, and seeing a future in
science and maths in particular, because I’m just such a keen person on
science and maths, and tech.
So, if I look at things in particular, I would say the Data Iwi Leaders Group,
which has been involved in discussions around the use of AI and AI in
Government, and I’l pull this in because it is actual y part of this portfolio. I
have found my discussions with the Data Iwi Leaders Group to be
invigorating and actually really enlightening on how progressively the Data
Iwi Leaders Group is thinking about how to use data and technology for
better outcomes for the people that they are most concerned with, which are
Māori, obviously, for no particular reason. And they are actually showing us
a way forward to us using this in Government and giving us a lot of ability to
do so. So these are the sorts of things that I think are important.
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In terms of mātauranga Māori, I think it’s real y important that we properly
define and work out what we mean, and that’s part of what the Science
System Advisory Group is looking at. We have people on that group who are
wel versed in the area. But we also are very aware—and I’m not at al
concerned to say—that not every application for funding should have to have
a Māori component. People should be able to put their applications for
funding that fal or rise based on their ability to actual y show why they should
have it and also what it is they’re about to achieve. But I actually think that
the worst thing that we could possibly do is not to encourage more children,
more tamariki, to be interested in and see themselves as having careers in
science. I just think it’s just—and tech. And I have yet to find one young
person who’s not interested in tech—everyone is.
Jackson
Your previous Government, of course, invested in mātauranga Māori. In fact,
Vision Mātauranga was something that Minister Mapp green-lighted, and
actual y talked about Māori components being part of everything. So I just
want to get some—
Collins
I’m not sure that I would see it as necessarily involved in everything, but I do
think—and I’ve certainly had complaints from researchers who have said that
they couldn’t get any research funding unless they had a Māori component to
it, and they felt that that was unfair and it was holding them back. So some
of those people were looking to Australia and other countries. But I think
that it’s much—we don’t have to be so blunt as that. What we can do is we
can look to see where the value is and the value—there is a lot of value. You
know, I feel I’m quite good chums with Sir Ian Taylor, and we’ve often talked
about that particular issue. I think there are huge opportunities for us as a
country, but what we shouldn’t do is to word everything so that a whole
chunk of researchers feel that they’re being left out when they don’t need to
be. We can actually be in it together. In this country, we’re too small, with
just over 5 mil ion people, to feel we need to be divided. We need to be
working together.
Jackson
But would you agree, though, Minister, that, in fact, it’s been Māori
researchers who have been left out, because the investment in terms of Māori
research from your own organisation—and you’ve said it, Carolyn, and your
organisation has said this—there’s been minimal investment in terms of
Māori research. And that’s why your former Minister was very clear in terms
of mātauranga Māori that aspects and components of mātauranga Māori
should be included in everything that comes forward, because of the minimal
investment in Māori, Minister.
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Collins
Wel , look, Hon Jackson, Dr Wayne Mapp hasn’t been the Minister for
science for a very long time. We’ve had a couple of Governments since then,
and Wayne Mapp and I are good chums—good friends—and his views will
be wel -known. I’m looking to the future. That’s why, when Dr Mapp was
the Minister for science, we didn’t have AI, for instance—or if we did, we
didn’t know we had it. We didn’t have quantum; we didn’t have biotech like
we should have. There’s lots of things that have changed. I actual y think the
best thing we can do is to get people interested, excited, and understanding
that there are genuine careers. Personal y, I’d like to see—and this is
completely going to upset al those people with communications degrees. I’d
just like to see more kids taking science and maths at school, and less in
communications and media.
Jackson
Could I ask one more question?
Collins
I think we’ve got some parents who’d agree with me!
Parmar
There’s a supplementary. I’ll go to Vanessa. Vanessa Winnick, do you have a
supplementary?
Weenink
Thank you. Just a supplementary on that. Minister, are you aware of any
partnerships with any of our many fantastic [
Inaudible] that are enabling our
advanced aviation and aerospace sector?
Collins
Yes, thank you. That was all about advanced aviation and aerospace. So
there’s the University of Auckland space institute, Te Pūnaha Ātea, and then
there’s also Tāwhaki, just south of Christchurch, which was set up in a
partnership between local rūnanga and the Government—the Crown. So
that’s doing a lot of advanced aviation, in terms of horizontal launch—so
drones, uncrewed aircraft, those sorts of things; uncrewed air taxis, I hope,
in the future, as we get across the blockages in Auckland transport! And then
we have the University of Auckland space institute, which I’ve already said
you should go and visit as a group, if you wish to. These are both good
innovations, which, obviously, we support, and we believe that it is important.
I would say, though, that the most productive of al would have to be the one
owned by Rocket Lab at Mahia Peninsula. I mentioned before in my speech
that New Zealand is the fourth-most prolific launcher in the world—
successful launches—and when I look at what we do in the sector, a lot of
it’s down to Sir Peter Beck, actual y, and his innovation and his courage. I just
look at that and think, wow, I’m really pleased that we’re part of it.
Bidois
Thank you, Madam Chair and Minister. Great comments about encouraging
more people in STEM subjects—very, very encouraging indeed. I just want
to zoom out and talk more about private R & D. So you’ve mentioned before
there’s actually probably a lot more R & D going on in the private sector than
public. What’s the latest estimates that you have on how private R & D is
going in New Zealand, because I understand that, relative to OECD
countries, our proportionate rates of private sector R & D are quite low. I’m
keen to get a sense from you on what the current data is showing us. What
are the low-hanging fruit, and what’s your aspirations to improve it?
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Collins
Look, that’s a real y good question, thank you. There’s some interesting
figures on this. Our R & D expenditure as a percentage of GDP is about
1.5 percent. The business R & D expenditure—so the private sector—is
actually 1 percent. That puts us as 27th in the world, on the figures I’ve been
given. Interestingly, Ireland has 1 percent R & D expenditure and business
R & D is 0.8 percent, and they’re 21st in the world. We’ve got Israel at
6 percent, Switzerland at 3.3 percent, Denmark at 2.9 percent, Singapore at
2.2 percent—you know, clearly it’s not just about the money, but it’s how it’s
used, and what we consider science funding as wel .
So, look, I think there’s no doubt that we do need to research more, but we
also need to implement more. It’s like there’s no point in Scion, our CRI
based in Rotorua, having the answer to wilding pines that does not involve
chemicals poisoning things and helicopters, and that sort of thing, if we can’t
implement it. We have to look at, from a Government point of view, it’s not
just about providing the money; it’s about providing the right regulatory
environment so that things can get done and people can get the benefit from
it. So, yes, there’s stuff we can do, but I just really think we need to make the
regulatory system useful and fit for purpose.
Parmar
That’s good, and, members, can I just say that this discussion is not about
general policy stuff, policy direction. It’s about the Estimates. So if you could
just bring your questions back to the Estimates—that’s what we are
scrutinising.
Russel
Thank you, Madam Chair. Just in terms of increasing our percentage of
R & D as a proportion of GDP—that’s what I’m trying to get the words out
for—it’s interesting to see that the expenditure on the R & D tax incentive is
going up a little more than we expected; so that’s tricky because you’ve got
to fund it somehow—yada, yada. Are you happy with that kind of swap over,
or that increase there, or do you see any risks floating through?
Collins
I think it’s quite easy to get fixated on percentages of GDP. I mean, because
if you really want the GDP percentage, all you can do is—you know, you can
actual y shrink the economy, and suddenly it becomes a bigger percent. So
let’s not do that—let’s not do that one. The private sector: at the moment,
it’s, what, 0.95 percent; so it’s about 1 percent total R & D—1.47. We’d love
to see more, but the fact is it’s not so much that—it’s not just that; it’s
implementation. When we have solutions for some of the world’s great
problems, around climate change, around al sorts of things, we have to be
able to implement them, if we can implement them—I mean, that’s the way.
I’d love to see more, but I’m also realistic. I know there’s a health budget; I
know there’s everything else. Everyone else has got budgetary needs,
including defence.
Russel
Yeah, it just strikes me that one of the issues there—and I’m sure you’d
probably agree with me—is often not so much the research but what can
legitimately get called development and so be eligible for this.
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Collins
That’s right. And I mean, I think some of the rules that we always put in
place—because everybody has to put in rules around these things, right? If
the rules are too easily gamed, we could end up with very strange things
happening—
Russel
And not even just the strange research.
Collins
No, just very strange research that seems to have very little to do with actual y
an innovation that you wouldn’t just consider a bit of a tweak. And, of course,
that is al money that’s not then being used for other things, as well. So it’s
about having a balance and also, I think, being flexible enough to deal with,
and to change rules when they need to be changed.
Russel
And just one final point on this—I mean, I take your point about you could
faff around with al sorts of ways to measure this, but are you stil hopeful of
increasing or working towards increasing the amount of R & D as a share of
GDP—no matter that we can fool around with numerators and
denominators there?
Collins
Well, I think the main thing, from my point of view—and I know that
Carolyn Tremain wants to make a comment, and she’s going to in just a
moment—which is I’d like the economy to keep growing faster. So that
would be helpful. But, anyway, Carolyn.
Tremain
Thanks, Minister, and just to say that we are coming up to a five-yearly
evaluation of the R & D tax credit incentive. I think that’ll look not only at
the administration of the system but also the impact and compliance—so that
issue about re-characterisation of research.
Russel
That’s good information.
Collins
But you’re right—I mean, as a tax policy person yourself, you will know—
Russel
There are ways to manage that.
Collins
There are ways to manage, and I think we have—you know, fewer massaging
of it and a little bit more actual would be good.
Davidson
Thanks, Madam Chair, and I thank the Minister for your answers so far. Just
to pick up on the “T” for tech that’s replaced the “R” for research in the
portfolio, and looking specifically at the balance, I guess, in relation to the
game development sector rebate scheme. So, I mean, I guess the first
question is the balance between the $38 million for the rebate versus the just
over $2 million going towards the Centre of Digital Excel ence, and the
decisions around getting that balance—some comments on that, and then
some supplementaries.
Collins
From memory, we actually, basically, kept the same policy that the previous
Government announced last year on this, so that there wasn’t too much of a
change. But you might have some—any further detailed information? Just a
moment; we’l get the current expert. That’s the thing with MBIE: there are
experts.
Henderson
Sorry, was the question around whether it’s—
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Davidson
It was, really, around the balance between the rebate, at about $38 million,
versus the investment into the Centre of Digital Excel ence, at around $2
million.
Henderson
Yeah, so I think it’s about—yeah, another $10 million was allocated to the
Centre of Digital Excel ence over four years. So that was enabling that to
continue, but it was to have a broader national focus—so not just being based
in Dunedin. It now has to work with gaming companies around the country.
Collins
I think they were very worried that they were going to lose that whole—
Henderson
The momentum.
Collins
—the momentum that they had—because, you know, I’m quite permissive
on this sort of stuff. I think that computer gaming is not what I do, but I love
that other people do it, and I think New Zealand has some great gaming
people, who need to be able to create more games and sel them to the world,
because it’s the—whatever generation it’s called these days! Whatever that
generation is, it’s their entertainment. They don’t go to movies; they do this
and create them, and we have some great expertise. It’s a fledgling industry,
but I think last year it sort of contributed—what was it—about $400-and-
something million—
Henderson
I think so.
Collins
—to the economy. And it’s a weightless export. So it’s really great in al sorts
of other ways, and we have such creative people. I’m sort of trying to hope
that this is one of those things that gets everyone excited about tech—
particularly at school—and they want to do anything to do with tech and
science and create new careers.
Davidson
And less comms and media?
Collins
And less comms and media. I know that that’s going to upset al the media
people here, and Willie, but that’s—you know, I just take that on board. But
I do think that we need to—I mean, comms and media needs to be into this
world, too, in many ways. It’s understanding that this is a potential massive
growth area for us, and it’s worth a bit of investment.
Davidson
So the supp’ on that, real y—and just to dig a bit deeper into it—is around
the balance of that funding, because it’s such a relatively smal percentage that
goes into the development, which is the part that, arguably, is going to drive
the growth. So it’s real y around—is there a case, or was there a case, for
investing more funding into the development side of things, potential y
retaining the rebate at the level it is? Is that something you looked at or you
plan to look at in the future?
Tremain
It’s, really, only the first year that the rebate wil come into play, so I guess
we’l get a better understanding of how it’s being utilised. I would expect, in
the first year, it’l probably be underspent.
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Collins
We’l see how it goes, because this is the first one. I mean, the previous
administration announced it and we said, yes, we’d do the same, and I think
that they felt they needed to do it, and we agreed, because the Australians
were trying to grab al our game developers, because our game developers,
obviously, are superior to theirs. Well, you know, we’re not stealing theirs. So
I think we’ll see how it goes. But we think it’s probably enough, but we’l see.
Jackson
I just wanted to touch back on what we were talking about earlier, Minister,
in terms of Māori relationships and funding going forward, given, as I said
earlier, your good chum Wayne Mapp certainly kicked things into shape—
Collins
Wel , watch it or I might start talking about some of your good chums, too.
Jackson
In 2010, when he was—
Collins
2010! You’re so last—almost last century!
Jackson
Yeah, your former Government, and he was ahead of the game and he
initiated Vision Mātauranga and supported it, and I thought he was
exceptional, “Mappy”, doing that sort of stuff. What I need to know is, going
forward, what—and I take into account some of your comments. What is the
plan in terms of the funding? Wil you continue the work that he started, and
that we continued, in terms of Vision Mātauranga? And can I ask you and
your officials: wil the investment strategy that MBIE had put in place—the
Tumanakotanga investment objectives, which was about partnering up with
iwi, hapū, communities, Māori groups. Is that stil in place in terms of a
strategy going forward for this Government—because it certainly was in
place last year? Wil there be a continuation of that partnering strategy and
investment in terms of Māori?
Olson
Kia ora. Yes, we’re continuing with our investments in a number of funds.
So the Vision Mātauranga Capability Fund, which was started under Minister
Mapp, continues, and we run an annual round of that. Then we have a range
of investments in what we call Expanding the Impact of Vision Mātauranga.
They’re continuing. So there’s the Ka Toro fund, which is enabling iwi Māori
organisations and communities to engage with the science and technology
portfolio. These are really small grants that they can apply for—$50,000,
$100,000—to start to make those connections. And we’re sort of taking this
stepwise approach. So then there’s another fund, called Ka Hua, which are
large, partnership-based funds. We’re going to be making some
announcements about those shortly. There’l be three organisations who’l be
proceeding through the process to write research programmes that we’ll
assess and determine if they align to the objectives of the funds—so that’s
continuing. We’ve got a range of investments in some fel owships, which was
a one-off scheme to enable Māori organisations to engage with international
agritech businesses in the US—so that’s continuing as wel . And then we’ve
got some funding through the new Tāwhia te Mana Fel owships that the
Royal Society administer, which are fel owships at different career levels,
which are open to everyone, but there’s an opportunity for Māori to engage
in that process.
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Jackson
No, no, and I can see that. All Governments have struggled too, in terms of
investment with Māori. I think we all recognise that—that the investment, in
terms of research, has been low; I think around 2.5 or 3 percent. Are there
plans in terms of strengthening that investment?
Collins
So you’re passing back to me, are you?
Olson
I think that’s SSAG, isn’t it?
Collins
Well, it is. That is, absolutely—the Science System Advisory Group. That’s
one of the things they’re looking at. So we’l let you know.
Jackson
Thanks for that.
Willis
Thank you. Looking at this globally, it looks as though we’re seeing a pivot
away from building a more science-literate public and community—mainly
through some of the unintended consequences of cuts that we’ve talked
about: the cuts to the Unlocking Curious Minds funding, the loss of science
at NIWA—and are more focused biotech as a sort of hopeful silver bullet.
Do you think this is the best way to encourage STEM subjects and interest
in science when we do face a climate crisis and we do need bright young
minds to help us through this? But we also need a real y engaged community.
Do you think—hoping that we’re going to have the tech solutions when we
have so many other solutions and we need that science?
Collins
Wel , this is science. These are science solutions, primarily, but I think those
bright young minds, they want solutions, and those solutions can’t be just not
doing things. We have to have the science solution. So gene technology,
biotechnology—that is science. But, anyway, I’m going to ask you if you’d
like to talk to that one too.
Olson
I thought it might just be helpful to understand Unlocking Curious Minds in
context. It was a small fund, as part of the Science in Society investments that
we make. So we’re stil investing in a large range of Science in Society
activities. The Unlocking Curious Minds was started at the same time as the
National Science Challenge—so in the same ilk—and had a natural end point.
But we are investing in Science Learning Hubs; our science teacher leadership
programmes to improve education of children’s science; the Science Media
Centre, which is about communicating through to the science community;
the science prizes—the Prime Minister’s science prize is a way of really
highlighting science achievements in New Zealand. We have the applied PhD
scheme that’s about to be initiated, which is to get students into PhDs that
are in the more applied space, to enable commercialisation of technologies
that the Minister’s been speaking about, and then the expanded fel owship
scheme that I mentioned just a moment ago, which is targeting—it didn’t use
to target early career researchers, and so now there’s an opportunity for early
career researchers, mid-career, and then esteemed researchers to get
fellowships. So there’s a range of these initiatives that are about lifting
engagement in science and technology, and also training and development of
future scientists in New Zealand.
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Collins
Can I perhaps just add to that too, about the STEM subjects, because you
might have seen, or might not have seen, that we’ve got these joint research
projects with NASA, which has been al ocated $9 mil ion from us, and those
are all around Earth observation research projects to contribute to the
Artemis programme, and some held in reserve for emergent opportunities.
So these are some of the things where we’ve got students involved, we’ve got
PhD students involved, we’ve got school students involved. We’re trying to
get people to see that there is not just a career as a science teacher—although
that is a very valuable thing, and we need more science teachers, and I want
people to know that—but people need to see that there are exciting careers
in New Zealand and overseas, and jointly overseas as wel , for us. But we
need to do those STEM subjects at school. Without that, we’re not going to
get anywhere. But we’ve got these projects.
Tremain
And I think we do quite a bit, when we have senior visitors from NASA and
New Zealand, to try and get quite a bit of social media and normal media
channels interested in this, just purely to create the environment where
people want to study and contribute more in the science field.
Collins
In fact, recently, I visited the European Space Agency’s Earth Watch—I think
it’s Earth Watch Project; it’s an institute—just outside Rome, on the way back
from the defence thing, to that. We went to see them, and they showed me
their real-time satel ite images of the world and the greenhouse gas emissions.
You’d be thril ed to know New Zealand was very good. Everyone else was
pretty bad, and some places like China and India were really bad, and New
Zealand was looking real y good on it. But they are constantly—I mean, this
is science actual y working in terms of giving people good information, that
people can be very wel aware that what we’re doing is obviously significantly
better than almost anyone else that we could see. But they also do things like
mapping the Antarctic, the Arctic—you know, ice floes, al those sorts of
things. You know, this is how you do it these days—it’s with satellites. So
space is also a major—I wouldn’t say it’s
the solution, but it’s an enabler of
people getting better understanding and, therefore, looking for solutions and
finding them.
Parmar
Al right. So I actual y have a supplementary on this, Minister, and this is in
regards to your role as Minister for Space. My understanding is that the
Minister for Space is not responsible for any specific appropriation and the
work is supported by teams in the ministry, which is funded through the
Economic Development appropriation. We know you’re the first Minister
for Space, so how do you see this working? You’re not responsible for an
appropriation, but ministry—
Collins
Well, of course, space is primarily, from my point of view, around—and we
have to work very closely together, the Minister for Economic Development
and myself, because she’s also the lead Minister in MBIE—so they’re always
helpful. But one of the big things is our space regulator, the New Zealand
Space Agency—do we have anyone from the space agency here?
Tremain
Yes, we do—Andrew.
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Collins
—yeah, Andrew—which is a very small agency, but it is absolutely top of the
pops, as far as I’m concerned. How many have we got—Andrew—
Tremain
17½.
Collins
—17½ people, and we do so much better than so many other space agencies
with massive budgets. But this is the space agency—and the regulator as
wel —that enabled Rocket Lab to do what it does at Mahia, and I’m now
working with CAA to help them do good work with the advanced aviation
side. So we’re, really, the regulator on that side, but we also try—and I get to
sign off all the payloads that are sent up from New Zealand. So I have
responsibility for making sure that they’re in the national interest. So that’s
really what we do. We’re not NASA. We don’t pay for other people to put
rockets up; we’re the people who enable that to be done here, and we do it
on the basis that it’s in New Zealand’s best interest. But I actually think it’s a
great model, and when I’ve been to some of these other big space agencies,
we’ve got more rocket launches—successful ones—than they’ve got, and
they’ve got enormous budgets that just blow our minds: almost as big as the
country. So we do really wel , and I think they’re a great model for an agency.
Parmar
So that means you’re saying, Minister, that you’re happy with the Minister for
Space not having responsibility for any specific appropriations, and the way
it works?
Collins
Look, we’re the regulator. So—
Parmar
So you’re happy with the current model and the way it is funded?
Collins
Wel , yes, because I’m not putting up rockets anytime soon. Although some
people have suggested that they might like to go to the moon, but it would
only be a one-way trip because we have budgetary restraints!
Parmar
Al right, so that’s good. Thank you. We have—
Collins
We don’t put up anything—yeah.
Parmar
All right, OK. We have—
Collins
Oh, you’ve got some questions.
Parmar
—a supplementary from Vanessa Weenink.
Weenink
Thank you, Madam Chair, and I appreciate that you’re doing a bit of a
balancing act here—so thank you for that. Minister, further around the stuff
around space, because, as you know, I’m very interested in al of this. The
aerospace opportunities, in terms of the advanced aviation stuff: what do you
think—you mentioned that there is a potential for growing the space sector.
Where do you see the advanced aviation sector, and what sort of proportion
of that growth do you think could come from that?
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Collins
OK, wel , thank you for that question. I mean, if we’re looking at advanced
aviation, I’m mostly talking horizontal launch. We have some really promising
emerging companies like Dawn Aerospace, Syos, Kea. These businesses that
are actually taking—mostly they’re engineers or physicists, and they’ve got
together and they’ve worked out ways to do things, whether or not it’s heavy
loads for drones or whether it’s horizontal launches to take things up to space
stations—al sorts of things going on. We’ve got these real y great people, and
what they need is real y great regulation from us, because we don’t have
bil ions of dollars to spend on this. But we do have people who want to invest
in these companies, but they need us to have light-handed enabling regulation
that enables them to get on with their job.
So one of my jobs is to, having taken over just recently the advanced aviation
space—sorry about that pun—advanced aviation area is to work with CAA,
the Civil Aviation Authority, to make sure that they become the wonderful
regulatory agency like the space agency is. And I just want to say that the New
Zealand Space Agency does everything it possibly can. Without their really
good touch, we wouldn’t have a space industry. Mind you, if we didn’t have
Sir Peter Beck’s innovation and courage, we wouldn’t have a space industry,
either. And one of the great things is we’re at the bottom of the world—this
particular trajectory, which is apparently very important for advanced aviation
and launches—and we don’t have any near neighbours. I think there’s one
flight that goes across Mahia Peninsula each week.
We’ve got some real opportunities, and we need to make use of this, because
we can’t be entirely dependent on primary industries, as we have become, and
tourism. We need to have other strings to our bow. So it’s not “instead of”;
it’s “as wel as”. So that’s how we’ve got to grow the economy. I see no way
forward to grow the economy other than science and tech, and that includes
space and gaming, and everything else fun.
Bidois
Just to change tack a little bit, to talk about AI, which I know, Minister—
Collins
Please do—thank you very much.
Bidois
—you’re very passionate about.
Collins
Yes, I am.
Bidois
Certainly there’s a big opportunity for New Zealand in that AI space. I’m just
wondering what the coalition’s plans are to support the use of AI and support
the sector but, at the same time, make sure that any downside risks are wel
managed—downside risks around data and—yeah. Happy to just leave it to
you, but real y keen to get your thoughts on that.
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Collins
Well, first off, a big thanks to those members of the committee and everyone
else who’s been part of our AI cross-party group, which I set up last year in
Opposition because it was clear to me that something needs to be done and
we need to understand a lot more than we did then. What I see as really
important for us—and if I’ve got the Data Iwi Leaders Group as an
example—is it’s real y important for us to get on board with this and to
understand that we col ect data all the time—you know, banks do; everybody
does. How do we make that work for people so that New Zealanders out
there are getting better services from the public sector, as wel as the private
sector, based on that? I know that it’s sort of fashionable at times to get very
worried about AI, but, let me tel you, the bad actors in the world are using
AI, and so the good actors need to be using it too. We need to get with the
programme.
One of the first things that MBIE has done is to put out an AI road map to
harness and to focus on AI for productivity, economic growth, diversification
and resilience, and that is a vision of an AI-enabled sector. On the other hand,
I also have my digitising Government sector as wel . I have the Department
of Internal Affairs working on how Government can be using AI better. But
we need certain principles around it. Parliament passed—when was it—two
years ago changes to the Privacy Act so that we protect data. The other thing
is the digital identity. That is really important for getting rid of this clunkiness
that we have at the moment in trying to engage with Government agencies
on a digital platform.
But the other thing to remember is that this sort of stuff has to be voluntary,
because we know that there are some New Zealanders who worry deeply
about their digital identity. If we try and do almost anything, whether it’s to
rent a property, get a loan, or open up, I don’t know, probably a power bil ,
actually—anything like that, you have to turn up with your driver’s licence,
your passport, or your digital identity, all your identity, and then someone
takes a photocopy of it and puts it in their filing cabinet, which is subject to
burglaries and everything else. So we’re not doing enough as a people to
protect ourselves, and this is one of the ways to do it, so we’re ful y embracing
that.
One of the things we are trying to do as wel is sort of guidance to businesses
based on risk management, and I’ve been meeting with our Australian
counterparts on this area too. They see it as “honey pots”. If you look at
honey pots, they have exactly the same issues. You know, rental agencies, real
estate agents—everyone wants all your details when you deal with them,
right? So who are these people and why do they have your details? They have
your details because we don’t have something that we can say that “That is
actually me.” We do use the RealMe thing, which was set up in about 2011.
It is pretty clunky. I mean, I’m one of few people I know who’s got it who
uses it, but lots of other Kiwis don’t. They did not get it, they didn’t
understand it, they didn’t see a need for it, but actually, with cybersecurity
such an issue as it is now, we’ve got to have some certainty and protection.
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So we’re working on al of those sorts of things. AI is crucial for that, but also
AI is crucial when it comes to things like us making sure that the right
people—as in, those that need it—are the people who get the most help.
That’s really important, and that’s where I think the Data Iwi Leaders Group
are so far ahead of where we’ve been in Government, and that’s why I’m
real y excited about our working together on this.
Parmar
That’s good. Dan, do you have a supplementary or—
Bidois
No, thank you. Thank you, Minister.
Parmar
All right, good. We’ll go to Deborah Russel .
Russel
Thank you. I do have about three primaries, but I’m happy to take them in
turn—
Parmar
All right. So we’ll see the time—
Collins
Is there something wrong with the air conditioning in here, team? It’s very
warm in here. It must be the warmth of your welcome—either that or we’re
saving money on heating.
Russel
If I don’t get to al of my questions, I’l submit them after the session. But,
Minister, you’ve talked several times about gene technology, and we haven’t
really talked about it in depth, and I am interested in that. You’ve talked
about—
Collins
Good. Are you going to come and have a briefing?
Russel
I’d love to.
Collins
Good—excellent. All right, we’ll do that.
Russel
You’ve talked about setting up a risk-proportionate future focus and an
enabling legislative framework—so a couple of questions around that. When
can we expect to see some of that first coming out—so some indications of
what that’s going to encompass? And also, I wonder if you could talk a little
bit about what you mean by a risk-proportionate framework?
Collins
Well, I can talk about some of that. Now, our Cabinet policy decisions are
expected to be made by August this year, and legislation is expected to be
introduced by the end of this year, and legislation is expected to commence
following a full select committee process in the second half of 2025.
So what we’ve looked at is the Australian model, which they set up in 2015.
We’ve also looked at the work that’s going on in the EU—so the EU is going
down the same pathway as we are—and we’ve looked at similar countries
with similar needs. So everyone’s pretty much moving in this direction—that
we can see—and if I say that gene technology has advanced incredibly rapidly
in recent years. So CRISPR technology, which was in 2012 the big thing that
changed everything—so that meant that instead of having to take a gene and
stick a gene from some other entity on to it, or whatever, you could take one
gene and do a little tweak inside that gene. That’s where you get the ability to
do things like CAR T cel therapies and using your own cel s to save you from
cancer—those sorts of things. It’s incredible technology. It won the Nobel
Peace Prize about—oh, was it four years ago? It was 2021—three years ago.
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It’s like the technologies have moved and we haven’t, so we’ve stayed stuck.
If I tel you that the Environmental Protection Authority has approved nine
GMOs for release in New Zealand since 2015, all of which are for medical
use, but at the same time things like the Scion development in wilding pine
technology can’t even be trialled, and the downside would be that it would
stop wilding pines. It’s like things have got out of proportion. So it’s very
important, but we’re not trying to do anything that is radical. What we’re
trying to do is to be very much the Australian model, with improvements,
because we’ve learnt from the Australians, and they’ve said if they did theirs
again, they’d do this, this, and this, and that’s what we’re doing. Do we have
anyone from our team on this one here? Prue, why don’t you come up—Dr
Williams? Actually, there’s one thing in dealing with the science area:
everyone’s a doctor, pretty much.
Russel
Mine’s wretched philosophy, though, rather than science!
Collins
I know, it’s the wrong one, but I mean, Prue’s got one in the right area! So
perhaps, Prue, if you could speak a bit more. You know, that’s the time
thing—so full process, we go through it al , and there’s got to be benefits.
Williams
Well, certainly, as the Minister has said, we’re trying to make sure that we can
enable our scientists to use the latest technologies and to use that to make
advances, and, as the Minister has said, the rest of the world is doing this.
With our approach, which was real y based around the Biotechnology Task
Force of many, many years ago and some regulations that were set up then,
and what those regulations said—there was a royal commission at the time
who said we need to embrace these technologies and we need to advance. So,
at the moment, it’s not that you can’t. It’s not against the rules to release a
field test—say, these pine trees out in the environment. The challenge is that
you need to go through a process of making the application and al owing
people to speak to it, and it’s actual y quite difficult and chal enging. So
scientists don’t bother to go through the process. By updating legislation and
bringing in the new updating to take account of the new technologies, we’l
be able to make some forward progress.
Russel
So “risk-proportionate”—that’s interesting. That feels a bit red raggy to me—
red rag to a bull—so that’s the bit I’m—
Collins
I’d rather cure cancer, frankly.
Russel
Well, I agree. I agree, but that’s why I want to understand that “risk-
proportionate” phrasing.
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Williams
I think that this is about—with any technology, you need to weigh up the
risks and the benefits. One of the chal enges for us is being able to think
about, with a new technology, just what are those risks. The risks of the new
technologies are different to the ones of the old technologies when we first
started out. That’s one of the things we’re trying to catch up on. So, for
instance, as the Minister said, when we first were using biotechnology 20 years
ago, you had to bring in a different species of gene. You would splice the
piece that you had and you’d bring in some foreign DNA, and now we can
manipulate it all within in the same species. The risks are quite different, so
we need to update that.
Collins
One of the things, too, is that there’s been some feedback from some
organics people and they’re worried about that—mind you, they have
neighbours next door to them who aren’t organic, and it [
Inaudible] But I’d
also point out that organics are 0.7 percent of our exports, and 90.9 percent
of those go to markets that produce or are proposing to produce products
using very similar gene technologies to what we’re using. So it’s simply, you
know—if you are subject to, in just a practical sense, Cyclone Gabriel e and
you had your apple orchards wiped out in Hawke’s Bay, that will take, what,
five to six years for those trees to be able to fruit again. There is science in
one of our CRIs that can produce those apple trees producing fruit in a year.
So, instead of entire families being wiped out economically and a whole
series—and, dare I say it, Australian apples getting into markets that should
be ours—there’s opportunities here, and since apples are all grafted anyway,
it’s not affecting anything else around. We have the most amazing science,
but then we’re not using it. I’ve certainly been to Adelaide, where they set up
a very friendly biotech area, and a whole chunk of New Zealand scientists are
working there because they can’t work here. I mean, it’s just enormous, and
a lot of it’s in medicine. So we’re just missing a trick and, worse than that,
we’re holding our health back and we’re holding al these other opportunities
back.
Parmar
So, Minister, are you saying that you’re giving assurance to the committee
that the changes would just include something that can be done with
CRISPR, or are you not giving that assurance?
Collins
No, there’s a different range of things. Once the legislation is drafted, it will
be coming here, obviously—I expect it will be this select committee. CRISPR
is the major area, but there are new technologies as wel .
Parmar
But you’re not giving any assurance of that—
Collins
Wel , we’re saying we don’t need to do those other things.
Parmar
It’s just going to be limited to that, or it wil be wider than that?
Collins
I think, until we get the full draft of the legislation, and before things go
through Cabinet, I can’t real y say much more, because it stil has to go
through Cabinet, and I can’t give you assurances on anything, really, other
than this is the time frame which was asked for and that technologies have
moved on a long way from 30 years ago.
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Parmar
Right, thank you. So we have just one minute left. Are there any concluding
remarks, Minister, you would like to make?
Collins
Thank you very much for your interest, and I think, if you want to do some
of those little field trips, particularly around space and quantum and stuff,
you’d really enjoy them. I think everyone likes space—the number of even
little kids who think I’m the “Space Lady” is great.
Parmar
Thank you, Minister, for that. Thank you for your time, and thank you to the
Ministry of Business, Innovation and Employment, and Callaghan
Innovation as wel . Thank you, everyone.
conclusion of evidence
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