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Science Forum Index » Medicine - Nutrition Forum » Research grants committee chairman is also Bionomics chairma
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 Posted: Tue Feb 06, 2007 6:27 pm |
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http://www.theage.com.au/news/business/research-grants-committee-chairman-is-also-bionomics-chairman/2007/01/10/1168105052291.html
Research grants committee chairman is also Bionomics chairman
Email Print Normal font Large font Mark Hawthorne
January 11, 2007
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SERIOUS conflicts of interest exist in the Federal Government's system
of issuing hundreds of millions dollars of scientific research grants.
Under the Co-operative Research Centre (CRC) program, which the Hawke
government established in 1990 to encourage research and development,
scientists and private companies are brought together to work on
government-funded projects.
Chairman of the 13-member CRC committee, which makes recommendations
to the Government on CRC grants, is Peter Jonson. Dr Jonson is also
chairman of Bionomics - a listed company that will benefit from the
new $37.7 million CRC for Cancer Therapeutics.
Dr Jonson, who has been Bionomics non-executive chairman since
November 2004, directly owns 413,757 shares and 1 million options in
Bionomics, and indirectly holds a further 130,000 shares.
On December 22 last year, the federal Minister for Education, Science
and Training, Julie Bishop, announced the establishment of the CRC for
Cancer Therapeutics. It will try to develop profitable anti-cancer
drugs in Australia.
On January 2, Bionomics told the Australian Stock Exchange it would
benefit from the $37.7 million grant.
In the statement, Bionomics chief executive Deborah Rathjen
highlighted how the grant would not only help the development of new
cancer treatments - the key purpose of the CRC - but also help
existing research into Bionomics drugs, including BNO69 for treating
breast cancer.
"This is a tremendous scientific and commercial opportunity for
Bionomics," Dr Rathjen said. "It provides the company with access to
valuable resources to further develop its own oncology portfolio.
"In addition, we stand to benefit from the discoveries of a large
number of top researchers and others working in cancer, one of our
core areas of expertise."
Accusations of systemic impropriety have been levelled at the CRC
system since 2002, and it is not the first time Dr Jonson has been
involved.
In November 2002, Ron Boswell, the Nationals Senate leader, said
"millions are being spent on funding the commercial goals of some well-
connected investor scientists" in Australia.
Senator Boswell added: "There is a pattern of research funding
decisions that raises serious questions about conflict of interest."
While under parliamentary privilege during a Senate debate, Senator
Boswell named Dr Jonson, who joined the CRC committee in April 2002,
as a person with a potential conflict of interest
Dr Jonson wrote to the Senate Committee of Privileges on November 13,
2002, to defend his reputation against accusations of what he called
"possible impropriety in matters of decisions about Commonwealth
grants".
In his letter, Dr Jonson stated that "careful and explicit attention
is paid to avoiding actual or potential conflicts of interest".
He also noted that his personal and family share portfolios were
managed by a fund manager "with no input from me".
This is no longer the case - shares and options have been paid
directly to him as part of his Bionomics remuneration package.
In June 2004, Australia's chief scientist, Robin Batterham, conceded
there was an "undeniable" perception of a conflict of interest between
his government position and his role as research head of mining for
Rio Tinto.
In 2004, Rio Tinto was a major beneficiary of a $500 million Federal
Government energy package. Dr Batterham was also a member of the 13-
member CRC selection committee.
"That there exists a perception of conflict of interest is
undeniable," Dr Batterham told a Senate inquiry into his role.
Dr Jonson, who started his career as an economics lecturer at
Melbourne University in 1971, was once a contender to be governor of
the Reserve Bank. In 1972, he joined the RBA as an economist, where he
worked on floating the dollar and deregulating the financial system.
He says he encouraged former treasurer Paul Keating's famous comments
about Australia's future as a "banana republic".
"We did a five-year projection of the economy and it didn't look
good," he said years later.
In 1997, he was in the running for the RBA governorship, a job that
went to Ian Macfarlane.
Dr Jonson could not be contacted for comment.
*******
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