The science community is in shock after a proposal to restructure the Crown agency, Callaghan Innovation, which employs more than 300 staff.
In a consultation document sent to employees last week, the institution said it was suffering from "significant financial pressures" and could no longer operate within its "current financial envelope".
It also highlighted the need to become more commercial, highlighting a possible move towards more revenue-generating and in-demand capabilities for businesses.
The Public Service Association said there was a risk Callaghan could be turned into a commercial-led organisation, which would limit scientists' research abilities.
'They have the answers to our problems' — Public Service Association
"These kinds of funding cuts mean we will lose our best and brightest scientists, like those at Callaghan, to overseas countries who are investing in science," PSA assistant secretary Fleur Fitzsimons said.
"Callaghan scientists and researchers are doing critical work on issues such as climate change. They have the keys to answer our infrastructure deficit problems or our ageing population.
"As a country we need to be investing more in science," she said.
Co-president of the New Zealand Association of Scientists, Dr Lucy Stewart, said successive governments had failed to invest in research and development, despite pledging to spend 2% of GDP on the sector.
"Compared to other small, developed economies — think of Singapore or Ireland or Denmark or Australia — we are far behind in terms of our research sector," Stewart said.
Callaghan's financial problems followed a decision to scrap "Wellington Science City" — a $450m programme to upgrade and create three new science hubs for institutions like Callaghan, GNS Science, NIWA and universities.
Stewart said that decision was linked to this latest restructure proposal.
"Wellington Science City was a desperately needed injection of capital to allow that rebuild," Stewart said.
"Now it's been taken away, the board and management are simply out of options, and I don't think they can really be blamed for this restructure, they have no money," she said.
An 'expectation' of being financially sustainable — Collins
Science Minister Judith Collins said in a statement that as a Crown agent, Callaghan Innovation had not been directly asked to make any cost savings.
But she also said it was her "expectation" that the board continued to ensure that Callaghan Innovation was financially sustainable into the future as it was required under the Crown Entities Act.
Asked about wider science sector investment, Collins said she intended to identify and implement changes that improved the efficiency of the entire science, innovation, and technology sector with minimal disruption.
She added that she was also cognisant that the Government was operating in an extremely tight fiscal environment.
Auckland University physics Professor Nicola Gaston described the Government's record on science as "hypocritical".
"It came in with a focus on science education in schools and the Minister says she cares about the sector, but there is absolutely nothing to match in terms of sizeable investment in research," Gaston said.
"We are seeing things cut all over the place; in research, in baseline university funding as well, and in the infrastructure needed for the operation of our research."
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