Last-minute reprieve for parts of Callaghan Innovation

Callaghan Innovation scientists will get a temporary extension of their funding.

By Mary Argue for RNZ

The Government is ramping up the transition to a new science system, with major shake-ups now due to happen this year, and an 11th hour reprieve for parts of Callaghan Innovation.

The changes are part of the Government’s overhaul of the science sector which will see Crown Research Institutes merge into new Public Research Organisations (PROs) and Crown-owned entity, Callaghan Innovation, disestablished.

Callaghan scientists facing redundancy said they had been left in the lurch by the changes, highlighting the gap between losing funding mid-year and the original 12-18 months signalled for the PROs to be formed.

But in an announcement on Wednesday, Science, Innovation and Technology Minister Shane Reti said he expected the new organisations to be up-and-running by October this year, with formal legislation to follow in 2026.

“Moving quickly to establish these new organisations that align with Government’s priorities of driving economic growth will make sure these organisations are better placed to deliver excellent science.”

Reti said funding would also temporarily be extended to parts of Callaghan Innovation signalled to be axed by 30 June.

He said in addition to the functions already confirmed for transfer to the Ministry of Business, Innovation and Employment (MBIE) or a PRO, funding for the applied technologies group would continue for another three months, and for the biotechnologies group until June 2027.

“The temporary extension of funding is intended to make for a smoother transition for clients and greater certainty for Callaghan Innovation’s scientists.”

The funding extension for Applied Technologies would allow contracted work to be delivered and a “more orderly wind down” over the coming months, he said.

In response, the Public Service Association said it was “good news that Dr Shane Reti has seen the ridiculousness” of stopping funding to Callaghan’s biotechnology teams.

National secretary Fleur Fitzsimons said the move would keep expertise in New Zealand and save about 40 jobs.

However, she said about 30 staff in applied technologies still had no home to go to when their funding ceased in September.

Fitzsimons criticised the Government’s approach as “clumsy from the get-go” but said the announcement that PROs would be set up by October would give current Crown researchers some certainty about their futures.