Commission may slow our lagging biotech research

By DANIEL RIORDAN

It's being claimed that the growth of New Zealand's biotechnology industry is being severely threatened by the royal commission of inquiry into genetically modified organisms.

Delegates at this week's industry conference in Auckland were told the industry - already lagging 18 months to two years behind Australia's - is slipping further behind due to the strong opposition to genetically modified foods.

Biotech, based on New Zealand's comparative strengths in life science derived from agriculture and horticulture, is potentially a major revenue earner for the country. The Government's Foresight Project is predicting foreign exchange earnings of more than $2 billion by 2010.

The inquiry begins scoping meetings around the country next month, and begins its work proper in September. Its deliberations are expected to take about a year.

Meanwhile, industry and research organisations have agreed to a voluntary moratorium, which will remain in place until the inquiry is finished.

The moratorium is likely to put the GM part of the industry 15 months further behind, conference participants said.

Dr William Rolleston, who chairs the New Zealand Life Sciences Network, representing research institutes and companies involved in genetic engineering, said the moratorium was a political reality but was not based on rational science.



Dr Diana Twigden, an executive with Arrow International, which provides strategic advice to biotech companies, said New Zealand was one big incubator, but 18 months to two years behind Australia in many areas.

"We have to be smart, to look at what's happening across the Tasman, and figure out what we can do to kick-start things here."

The New Zealand Government was moving in the right direction, said Dr Twigden, but its efforts were "embryonic" in comparison with Australia's. The Victorian state government is spending $400 million developing a technology precinct in Melbourne. South Australia and New South Wales are promoting similar ventures and also setting up angel networks for high net-worth investors.

This country's highly advanced agriculture and biosciences sectors, high-quality and low-cost research facilities and innovative science community, have already led to several major US companies investing here to complement their own operations.

They include Celera, which is partnering the Dairy Board, and Monsanto, working with Genesis and Fletcher Forests.

Geographic isolation and a rigorous border control protection system keeps New Zealand free from many of the significant diseases that affect animals in many parts of the world, making New Zealand an attractive place to produce pharmaceuticals based on animal products.

Biotechnology was also a tool that helped provide an understanding of plants and animals, which could improve methods of agriculture, the conference heard.

New Zealand also had much to learn from the United States, where an SME (small or medium-sized business) wore its bankruptcy "like a badge of honour," said Dr Twigden.

Comparable New Zealand ventures had to have the courage to follow their entrepreneurial instincts even if the risk of failure was high.

Australian companies seemed better at this, perhaps because the cultural models they followed in business were less influenced by the British and were less conservative.