Source: PSA
Last month’s announcement on the new Applied Technology Institute failed to reveal that science funds were being cut to finance it.
MBIE has now revealed to media that there is no new money for the institute, but the $231 million budget comes from cutting science funds and from other science pools.
This includes the Government chopping nearly $70 million from four key science research funds – Endeavour Fund, Marsden Fund, Health Research Fund and the Strategic Science Investment Fund, plus $21 million from National Science Challenges, a programme the Government abandoned last year (see MBIE media statement below)
“The Government says it wants to kick start our economy with investment in science – meanwhile chopping science off at the knees and hoping no one will notice,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“It’s robbing Peter to pay Paul, raiding science funds without providing the increased funding science needs to drive growth. The economy will be worse off, and we will keep losing scientists to other countries which value them.
“You can’t grow the economy by cutting science funding. Just ask Sir Peter Gluckman and the Science System Advisory Group which said in its report that greater investment in science was key to driving productivity.
“Scientists rely on these funds for ground-breaking work; they deserve ongoing support. These secret cuts on top of closing down Callaghan Innovation show that this Government has no commitment to science.
“It’s ironic that less than a year ago then Science Minister Judith Collins said the ‘Endeavour Fund round being funded is focused on economic growth and commercial outputs’.
“How does cutting $13.5m from the fund in 2025 make sense when this year was supposed to be all about going for growth?
“It just shows how mixed up the Government’s economic strategy is.”
See statement from Science Minister Judith Collins on 16 September 2024 here.
“This is happening at the same time the Government is giving a $300 million tax break to big tobacco – this funding sleight of hand speaks volumes to the real priority the Government places on science.
“The Government should be open and transparent about these changes not making them in secret.”
The PSA has written to the Minister for Research, Science and Technology, Shane Reti, seeking an urgent meeting to discuss the impact of these cuts and the need to protect the science workforce and the science and research institutions that are now at risk.
Statement from MBIE released to media
The Government is investing over $231 million in the New Zealand Institute for Advanced Technology over four years. This new public research organisation will invest in science and technologies like AI, quantum computing, and synthetic biology – fields with the potential to transform industries, grow exports, and lift New Zealand’s global competitiveness.
Of the $231 million, $150.4 million is being reprioritised within the Science, Innovation and Technology portfolio. This reflects a shift in priorities within the Science, Innovation and Technology portfolio towards emerging technologies that can be commercialised.
The majority of this funding will continue to go into science – but into new areas of research that have significant potential, where New Zealand is developing greater capability.
Funding is reallocated from:
Endeavour Fund – $13.489m (from 2028/29)
Health Research Fund – $11.487m (from 2028/29)
Marsden Fund – $15.119m (in 2028/29)
New to R&D Grant – $18.084m across 2025-2028
Callaghan Innovation Operations – $24.336m across 2027-2029
Contract Management – $3m across 2026-2029
$37.537m has also been reprioritised from the Strategic Science Investment Fund (from 2025/26 to 2028/29) to the Institute for Advanced Technology from contracts which are coming to an end over the next three years and $21.603m has been reprioritised from unallocated National Science Challenge funding.
The remaining funding, of just over $80 million, will continue to support functions transferring to the New Zealand Institute for Advanced Technology from Callaghan Innovation. These are the HealthTech Activator, the New Zealand Product Accelerator and the Technology Incubator.
The relevant briefing will be released on the MBIE website in due course.
