CRIs break half-billion revenue – pay Crown $50 million

The country’s largest science research businesses, the nine Crown Research Institutes, have broken the half-billion dollar barrier in revenue, set a new record for overseas earnings and paid the Crown nearly $50 million in dividends and taxation in the past year.

Direct economic measures are only part of how CRIs contribute to the wealth of the nation. However, the benefits of cleaner air, water and land; new or improved food and medicines; or reduced pests and improved public health are often shared across other companies or organisations and thus less easy to measure.

Each CRI has now tabled its Annual Report in Parliament. Collectively, they show that CRIs increased revenue by $29 million, from $482.6 million in the 2000/01 year to $511.66 million in the 2001/02 year. The revenue growth exceeded last year’s rise of $23 million.

Overseas earnings rose from just under $43 million to $46.95 million, a ten per cent increase over last years near doubling of overseas revenue. The continued growth emphasises the international credibility of New Zealand science.

Much of the increased revenue came from commercial contracts in New Zealand and abroad. Funding from the Foundation for Research, Science & Technology accounted for barely 50 per cent of revenue, down from last year’s 55 per cent of total revenue in what is now a well-established trend.

Shareholder funds reduced from $320 million to $290 million, primarily due to restructuring costs and payment of dividends.

CRIs paid the Crown $40.4 million in dividends, and tax of $9.23 million. CRIs have now contributed $45 million to the Government’s New Zealand Venture Investment Fund (NZVIF).

The CRIs returned net surplus after tax of $9.66 million (2001: $22.8 m). Staff numbers at 30 June were 4,092 (3,964) full time equivalents. However, this number includes some whose employment was to be terminated due to changed FRST allocations for the 2002/03 year.

Forest Research and HortResearch reported deficits after tax respectively of $1.69 million due to non-recurring items (treatment of a development cost) and $758,000 due to restructuring. Nevertheless, Forest Research paid $3 million in dividend to the Crown.

Landcare Research reinvested $3.55 million on shareholder approved projects, resulting in a deficit after tax of $69,000. It paid $3.5 million dividend in the previous financial year.

CRIs contribute to the economic, environmental, social and knowledge wealth of New Zealand in diverse ways.

In addition to creating public benefits, particularly in the environment, they enable technology transfers to private sector and public organisations, where wealth is multiplied and distributed.

CRIs also provide the essential underlying capability in people, facilities and knowledge for the long term future of science and innovation in this country.

The individual CRIs can be accessed via http:// http://www.acri.cri.nz

ACRI supports the common interests of the Crown-owned research companies, the largest providers of scientific research in New Zealand.

The CRIs undertake blue-sky and commercialised science and technology research for government and private sector markets in New Zealand and abroad.

The CRIs are: AgResearch, Crop & Food Research, ESR, Forest Research, GNS, HortResearch, Industrial Research, Landcare Research, NIWA.

Crown Research Institutes, for FY 2001/2002 2002 2001

Revenue 511.66 482.6
Overseas revenue 46.95 43.0
FRST funding 256.52 252.19
S/holder funds 289.74 320.8
Net surplus after tax (NPAT) 10.31 22.8
Dividends 40.40 3.5
Tax paid 9.23 8.66
Staff (FTE) 4,092 3,964

© Scoop Media