AgResearch to cut 78 staff, keeps five jobs after staff submissions

AgResearch, the Crown research institute, will cut 78 staff, five fewer than first flagged a month ago, as the government puts pressure on the science body to deliver more bang for its taxpayer-funded buck.

The Waikato-based CRI will lose 31 scientists and 46 science technician roles across different research areas, while hiring 18 new scientists and nine new technicians, taking the net loss of staff to 51, out of its 769 fulltime and 95 casuals. Chief executive Tom Richardson said after reviewing submissions from staff they were able to reduce the net loss of staff from 56.

The research institute had to balance shifts in its sector's research needs, and therefore revenue, with the need to respond to emerging science opportunities to maximise the impact for New Zealand's pastoral sector, he said.

"The challenge for us all is what is the balance between the science platforms and long-term investment in areas, versus work that is seen to be more relevant in the short-term," Mr Richardson said. "The government, like every government I am aware of on the planet right now, is saying we want to understand better how the investment we're making is making a difference for the country. So this government has been really clear that their priorities around research are to increase the amount of private sector activity and investment and to make sure the work we are doing is relevant."

When news of the cuts first emerged last month, AgResearch scientist Doug Edmeades described it as a "pretty fatal blow" to agricultural research, representing a loss of about 19% of its researchers.

Mr Richardson said it was about balancing the research, and while some issues, like greenhouse gases, would see a greater focus on product development than blue-sky research, other areas like food and nutrition, would see more in-depth, early-stage research.

"In our portfolio about a quarter of what we do is blue sky, about two-quarters of what we do is in the near applied space and a quarter of what we do is in the near development phase, so we've got a product in mind we're developing it and it's almost always with a commercial co-investment, and that's our challenge is constantly looking at that balance in quite specific areas," Richardson said. The balance after the staff cuts would remain about the same.

AgResearch's first-half report flagged that it was unlikely to hit budgeted full-year revenue, primarily because of an unforeseen decrease in revenue from Ministry of Business, Innovation and Employment and Primary Growth Partnership-related contracts. The report said the board and management were continuing to "explore opportunities to replace this revenue and expenditure controls remain."

The group posted $63.7 million in revenue for the six months ending December 2014, down $5.2 million on the same period the previous year and below budgeted revenue of $69.9 million.

It made a net deficit after tax of $5.9 million, $1.1 million more than at the same time last year.

AgResearch is one of seven state-owned CRIs formed in 1992 and aims to enhance the value, productivity, and profitability in New Zealand's pastoral, agri-food and agri-technology sector

(BusinessDesk)