The subject matter in the Australian Research Council Amendment (Review Response) Bill 2023 is very important to me. Indeed, it was in my first speech that I spoke of the importance of academic integrity and freedom, so I'm really delighted to be standing today in support this legislation. As someone who has had an association for quite a long time with the university sector—as a student, as a researcher and academic, and now as a federal representative with multiple campuses in my electorate—I know how significant this legislation is. It's one that I'm interested in and that my community is interested in.
We've heard from previous speakers the work that our government is doing to reform the higher education and research sector. Indeed, this is something I've been arguing for for a long time, including in my first speech in this place. Throughout the process of reform and review, I've undertaken surveys in my electorate in relation to higher education and research. I've held mobile offices in the community in relation specifically to higher education and research. The feedback I've received has very strongly supported the strengthening of research in this country, particularly the importance of academic integrity and the need to strengthen and protect the way governments see freedom in academia.
We have a very fine higher education and research system in this country. Australian research has made an enormous contribution to the world. This bill ensures that as a nation we take necessary steps to invest in future research so we are at the forefront of new discoveries and innovations. Through amending the Australian Research Council Act 2001 and making changes to the Australian Research Council's purpose, oversight and funding arrangements, we are modernising the Australian Research Council and also strengthening it. The changes in this bill mean that the Australian Research Council can continue to be the catalyst for the productivity and innovation that Australia needs now and into the future. The amendments in the bill are in response to the final report, Trusting Australia's ability: review of the Australian Research Council Act 2001, which made 10 recommendations, including to amend the Australian Research Council Act to provide greater clarity of the Australian Research Council purpose and functions, strengthen governance and accountability arrangements by establishing an Australian Research Council board, reduce legislative burden and increase accounting flexibility to fund research programs.
The Australian Research Council plays a unique and significant role in this country. It supports basic and applied research across all disciplines except medical research, and no other agency does. This financial year alone will see $895 million in research administered by the Australian Research Council, supporting more than 5,900 new and ongoing grants. And of course we know that the Australian Research Council does not just fund research; it also acts as a very important safeguard on research integrity and provides advice and support to the Australian government on research matters.
There are economic benefits that flow, too. We know, for example, that for each dollar of national competitive grants program funding administered through the Australian Research Council there is $3 of economic benefit. This is really quite remarkable, given that we as a nation account for only 0.3 per cent of the world's population but contribute about 10 times what would normally be expected when looking at our population size alone. This return on investment goes a long way to enhancing our reputation as a leader in research on the world stage. Over the last two decades, the Australian Research Council has supported the work of some truly outstanding Australians with some exceptional and world-changing ideas. From bringing the internet to Australia to getting quantum computing off the ground and driving the uptake of rooftop solar, the Australian Research Council has supported these projects. It's true to say that over the same period in which the legislation that underpins the Australian Research Council has been in operation it has not been comprehensively reviewed. So legislation has not kept pace with the times.
As the Minister for Education has stated in relation to this important area of legislation, the Australian Research Council has in recent times, appallingly, been subject to political interference and ministerial delays. This is something I feel particularly strongly about. The former coalition government were known to interfere on at least six occasions to upend the independent peer review process, something that, as a researcher myself, I find to be absolutely disgusting behaviour. I know and have worked with people in some of the most highly regarded institutions in this country who were impacted by the political interference by the previous government despite well-respected, well-credentialled peer reviewers recommending projects, which is a secondary insult to the research community—to show such disrespect to those peer reviewers who are the experts in their field. Interference such as we saw from the previous government is, frankly, an international embarrassment. Not only does it make it harder for universities to recruit and train staff, but it also damages the good standing of our world-class universities—reputations that have taken decades and so much work from dedicated academics to build. I'm really proud that our Labor government takes our responsibility seriously when it comes to protecting the integrity of the Australian university and research ecosystem. I will always stand up for the Australian university sector.
Our commitment has been demonstrated in many ways. It was demonstrated when the Minister for Education announced that this Labor government would undertake the first comprehensive review of the Australian Research Council Act. The minister tasked the review panel with terms of reference that were broad in nature, looking to what needs to be done to make sure that the Australian Research Council is both fit for today's research context and prepared for the future. The panel consulted widely. This included consultation with researchers, universities and other higher education providers, traditional owners, research organisations, industry groups, peak bodies and governments. The review concluded in April of last year and made 10 recommendations, with the Minister for Education announcing in August that our Labor government has agreed, or agreed in principle, to all of them. Some of the review panel's conclusions included that there was a need to strengthen the Australian Research Council governance arrangements and bolster its independence. This means not only getting the politics out of research funding decisions but also ensuring the end of those dark days of ministers vetoing things that they don't like.
The Minister for Education had previously instructed the Australian Research Council to commence work to implement three of these important recommendations. These included that we help universities attract and retain talented academics through meaningful fellowships and promoting academic careers in research, that we advance the support for Indigenous Australian academics through better consultation and additional fellowships and that we encourage more consultation between the Australian Research Council and stakeholders in the academic and research community. Six of the 10 recommendations require legislative amendments, which are addressed in this bill which will amend the Australian Research Council Act. The establishment of an Australian Research Council board as the accountable authority of the Research Council will also be facilitated through this bill. The board will be responsible for the approving of research grant programs under the National Competitive Grants Program, which is one of the essential changes that were recommended by the review.
The current act, as previously mentioned, has given rise to reprehensible political interference and ministerial delays when it comes to the approval of grants. Thousands of grants and every decision previously were at the discretion of the minister, and there were some pretty appalling consequences of that for the research community in this country. I'm really pleased that our government knows that that is appalling and should not be the case. Our nation's best researchers deserve to have their work assessed through an independent expert peer-review process that provides them with the confidence that their research will be assessed on merit and not treated as some political plaything. Our government wants to send a loud and clear message to Australia's best and brightest that this government supports clear and transparent research selection processes based on research excellence.
On a practical level, the Minister for Education will be responsible for setting the funding rules that the board must follow when making grant decisions. Importantly, this will be a disallowable legislative instrument and a safeguard against future ministers seeking to circumvent the Australian Research Council board without the oversight of parliament. There will also be some provisions within the legislation for the minister to retain funding decisions as they relate to the approval of nationally significant investments. Importantly, this discretion will not be used for individual research grants in and of themselves, but rather for investment in research as it relates to infrastructure, training, collaboration and helping to move the needle on our nation's broader research efforts. This might include projects similar in nature to the Australian Research Council centres for excellence and industrial transformation research hubs.
Naturally, there are also provisions within the bill for the minister to instruct the Australian Research Council board to not approve a grant or to terminate funding altogether based on national security grounds. If this occurs, the bill stipulates that the minister must notify the parliament and the Parliamentary Joint Committee on Intelligence and Security. The number of times that this occurs will be reported in the Australian Research Council's annual report, demonstrating very clearly our commitment to transparent and accountable process here.
This bill will also change the funding arrangement from that of a special appropriation arrangement to an annual appropriation arrangement. Doing so will provide both funding visibility and confidence for researchers and the university sector.
The bill will also strengthen research integrity measures to support the Australian Research Council functions, reflecting another important recommendation of the review panel. Organisations will be required to enter into funding arrangements with the CEO to receive financial assistance, and the CEO is able to terminate an agreement if the organisation breaches a term or condition. Additionally, the board and the minister may terminate funding approval for breach of an agreement. If an organisation's agreement or approval is terminated there will be powers for recovery of grant amounts, including the ability to set off a debt to the Commonwealth. These measures are appropriate and provide the integrity mechanisms that will allow the Australian Research Council to ensure that Commonwealth funding is being spent as intended. These important and much-needed changes to the Australian Research Council Act are going to be supported, I think, by most fair and reasonable people in this building. I would really question why people would not want to see academic integrity placed at the heart of Australia's research ecosystem.
The response from the sector and key stakeholders have been overwhelmingly positive. There is support from groups such as Innovative Research Universities and the Australasian Council of Deans of Arts, Social Sciences and Humanities, and the bill has also received support from Universities Australia, the peak body for universities in this country.
Researchers know that, when it comes to supporting Australian research, it's only a Labor government that has their best interests at heart and actually treats them with the respect that researchers deserve. It's only a Labor government that will not meddle and run political interference with their life's hard work and expertise through calculated ministerial interventions and vetoes. It's only a Labor government that will act in a supportive and transparent way when it comes to elevating Australian research and, in doing so, will help position our researchers at the forefront of discovery and innovation.
I'm really proud of the researchers that live and work in my community. I'm proud of the people that I've worked with through my own research career. I'm proud of this bill before us today, which ensures that academic integrity and freedom and a strong research community remain the bedrock of higher education and research in this country.
