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SurfaceUnits
12-24-05, 11:15 PM
IRL losses worry scientists
Stuff.co.nz,New Zealand
IRL losses worry scientists
24 December 2005
By KELLY ANDREW

Scientists at crown research institute Industrial Research have told board members they are shocked and dismayed by the deterioration of the company.

In a letter to chairwoman Liz Coutts, staff say they are concerned recent managerial decisions have eroded the institute's financial viability, career prospects for employees, and its ability to create value for New Zealand.

For the past three years IRL has reported financial losses by its two commercial businesses, BioPharm and GlycoSyn, and last month it announced a $5.4 million loss for the year to June.

Lack of equipment and qualified staff, growing bureaucracy, and a "burdensome" management system were high on the list of staff concerns.

The 185 people who signed the letter urged the board to address the problems, appoint a chief executive with a "credible scientific research background", and establish a transparent management structure. They also requested a meeting with the board.

National Party spokesman Paul Hutchison called for a parliamentary committee inquiry after the letter was made public.

Dr Hutchison said the company had suffered three years of financial losses, last month 41 people were made redundant, and former chief executive Nigel Fitzpatrick had resigned suddenly soon afterward.

"It's pretty worrying when Industrial Research was one of the eminent crown research institutes with a terrific record and an international reputation till the last three years, so somewhere they've clearly got into difficulties."

A spokeswoman for duty minister Trevor Mallard said it was up to the board to resolve the difficulties.

Acting chief executive Tony Price said IRL had sustained financial losses but it was still a "productive, stable organisation".

"Recent cost saving measures such as the redundancies . . . were taken to absolutely ensure the financial viability of the organisation and to ensure a firm focus on its core activity, which is the development of world-class science."

National calls for inquiry into IRL
Radio New Zealand,New Zealand
National calls for inquiry into IRL

Posted at 6:24pm on 23 Dec 2005

The National Party's science spokesperson is calling for a parliamentary inquiry into problems at Industrial Research Limited.

Scientists working for the Crown Research Institute have sent a letter to their board of directors condemning what they call suicidal policies that see government contracts going unfulfilled.

They say project teams are being moved from their area of expertise to follow research where they have little credible track record and little hope of establishing one.

National's Paul Hutchison told Checkpoint the letter is very worrying. He says he hopes to gather support for an inquiry from other parties next year.

The Government is not commenting, saying it is a governance issue.
Losses for three consecutive years

Industrial Research Limited recorded a $5.4 million loss last year - its third consecutive year of net losses.

Morning Report was told on Friday that IRL's revenue last year was $60m, with more than $36m directly from a government agency that funds science and technology.

Former CEO Nigel Kirkpatrick quit suddenly last month. Redundancies were announced: around 60 personnel have lost or are set to lose, their jobs. The Auckland site is closed and Christchurch has been cut.

Board chair Liz Coutts would not talk to Radio New Zealand News yesterday. Nor would CEO Tony Price, who said it was an internal matter.


Funding agency monitoring IRL contracts
Funding agency monitoring IRL contracts

Posted at 5:05pm on 23 Dec 2005

The state agency which contributed around $30 million to Industrial Research Limited, says it is monitoring its contracts.

A letter from IRL scientists to their Board of Directors is critical of the management of the company and labels its policies as suicidal.

It states that science project teams are being moved from their area of expertise to follow research where they have little credible track record.

The scientists' letter said the company could not fulfill contracts because there were staffing shortages and inadequate equipment.

The Foundation of Research and Science Technology says it has contracts with IRL worth "about $30m".

A spokeswoman says the agency will not comment about the letter, but it is monitoring the contracts.
Losses for three consecutive years

Industrial Research Limited recorded a $5.4 million loss last year - its third consecutive year of net losses.

Morning Report was told on Friday that IRL's revenue last year was $60m, with more than $36m directly from a government agency that funds science and technology.

Former CEO Nigel Kirkpatrick quit suddenly last month. Redundancies were announced: around 60 personnel have lost or are set to lose, their jobs. The Auckland site is closed and Christchurch has been cut.

Board chair Liz Coutts would not talk to Radio New Zealand News yesterday. Nor would CEO Tony Price, who said it was an internal matter.

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This stuff parallels the IRL we know and love. Like deja vu all over again. Too weird. :p

RacinM3
12-25-05, 02:47 AM
Shouldn't this be in the "Other Research Institutes" forum? :confused: ;)

NismoZ
12-26-05, 12:01 PM
Well, how 'bout this then? Lee White, Toyota USA boss told CC Audio Roundtable he'd give CC a 9 out of 10 for what CC accomplished last year and he'd score a 1 of 10 for the HRL! :D