Chairman's Review
Kia ora tātau
The Government’s pursuit of economic transformation through science and innovation and recent survey evidence highlighting nostalgia for New Zealand’s traditional quality of life values1 are often characterised as opposing drivers. In fact, these two aspirations are compatible; together they guide the mission of Landcare Research, constantly presenting us with challenges and opportunities.
When asked by researchers what “quality of life” means to them, New Zealanders overwhelmingly listed values that relate to their natural environment – urban, rural and wilderness2. A sense of entitlement to clean air, water and sustainable energy, concerns about excessive waste, climate threats to our beaches and productive lands, and a deeply held aff ection for our indigenous biodiversity were among the most frequently expressed views of respondents.
These issues represent our core business, with many examples covered in this report. With our land-based economy and regional biophysical limits being reached for some natural resources, sustainable economic growth must be underpinned by innovation from the environmental sciences.
We welcome the Prime Minister’s remarks in opening the 2005 Parliament that science and innovation are critical to driving New Zealand’s prosperity. We also acknowledge the intent of the new “More Stable Funding Environment” (MSFE) science policy announced in May 2006, providing for greater certainty in longer term research and science programmes. However, we remain concerned about how Landcare Research can maintain capability while declining state funding in real terms is producing an increasingly uncompetitive salary structure for the New Zealand science community. For Crown research institutes this could be addressed in a manner similar to the financial provision made in the 2006 budget specifically for university salaries.
In his first full year, our Chief Executive Dr Warren Parker demonstrated committed leadership and high energy, completing a major organisational restructure to equip the company for its pursuit of commercial growth and capping the year with a financial surplus of $2.155 million, a tribute to the commitment of staff and management.
In the current flat science-funding environment through Government, the directors strongly support the Chief Executive’s strategic approach to grow revenue from the private sector. We are confident that the restructure of the senior management team will promote a closer business engagement between Landcare Research and its commercial partners in the future, and better align accountability with the principal drivers of the business. We commend the senior management team for their leadership and resilience during this challenging period.
Our manufacturing subsidiary Sirtrack (page 27), which produces tele-tracking equipment for the international wildlife market, continues to perform well, particularly in export markets. Our former Deputy Chairman, Julian Raine, who has wide export business experience, is chairman of Sirtrack. We have also appointed Dean Joiner, an appliance engineer and executive, onto Sirtrack’s board. Efforts to drive further science innovation from the parent company are delivering value and synergies for both Sirtrack and Landcare Research.
At the end of the year shareholding ministers advised the reappointment of Jill White and Willie Te Aho to the board for a further term, and extended my term as chair for a further year. They also advised the appointment to the board of Ms Jo Brosnahan, a widely experienced public sector executive.
In closing I wish to thank my fellow directors for their support and commitment to their board duties and particularly to my deputy, Anne Urlwin. To Warren and his management team and staff, our commendation and congratulations on a successful year.
1 Research on Growth and Innovation, Growth & Innovation Advisory Board, Ministry of Science and Technology April 2004: 87% of respondents listed “quality of natural environment” as either very important or important to them.
2 New Zealand Business Council for Sustainable Development UMR National Survey 2005.
