Budget 2025 Robs Researchers To Pay For Regulation

NZAS Co-Presidents Lucy Stewart and Troy Baisden have made initial comments on the Budget released by the coalition government this week, highlighting the ‘re-prioritisation’ of frontline research funds to pay for the government’s science reforms. Pre-Budget commentary has emphasised that Aotearoa New Zealand’s research and science system has been under-funded by successive governments for decades and that meaningful new funding is needed if we want to achieve the same level of science and innovation as other small advanced economies [1]. The need for funding from government was also a key theme of the first Science System Advisory Group report released in January 2025 [2]. 

Prof Troy Baisden laments, “Following last year’s nothing-burger budget for science, this year edges toward a black hole budget for the research system. Many areas of research may now be heading across a threshold where there’s no escape and they can no longer rebuild what is being lost.“

Dr Lucy Stewart comments, "The Government signalled that there was unlikely to be new spending for research and science in this Budget. They have also, in the past six months, demonstrated a willingness to take funding away from areas of research that they do not see as priorities. This was most clearly illustrated by the changes to the Marsden Fund in December 2024, which removed social sciences and humanities from the eligible areas of research. In recent weeks they have also announced that the Endeavour Fund will not award new funding in 2026 and will only offer extensions to current projects which are considered to be ‘value for money’ and to align with the government’s priorities. 

At the same time, they have committed to significant reforms to the science system including the establishment of three - or perhaps four - new Public Research Organisations, two created by merging existing Crown Research Institutes, as well as the establishment of a new regulator for genetic technologies. These reforms will cost money. In this Budget, we learn that they propose to pay for them by cutting yet more money from our core research funds - primarily the Health Research Fund, which has $17 million less budgeted in the 2025/2026 financial year, as well as the Catalyst Research fund, which loses $12 million. The Strategic Science Investment Fund is also hit by significant ‘reprioritisation’ of funds forecast across the next three years, and cuts of approximately $5 million are proposed for the Marsden Fund in 2026/2027 and 2027/2028 as well. The Marsden Fund has effectively not received any new funding for nearly a decade, so it is already very hard-hit by inflation. 

As I said last year, I expect to see more job losses across the sector before the end of the year. Many researchers depend entirely on contestable funding to support their jobs and less contestable funding available means fewer researchers will be employed.

I do note that there are small but relatively meaningful increases budgeted for funds supporting the development of mātauranga Māori researchers and organisations, PhD students working on applied science, and early and mid career researcher fellowships. This is good to see. However, at the same time the research system that these researchers are part of is being torn down around them. Small increases cannot make up for that."

Prof Troy Baisden adds: "Today’s budget continues to double down on a pattern spanning four decades, in which New Zealand’s governments have been world leaders in choosing not to invest in the future. We appear determined to fall behind peer nations with our investment in research, science, innovation and technology. This is increasingly true for universities, which continue to see the increasing support they saw across the decade to 2020 reversed.

There’s almost no good news, with significant areas now having gone many years without any adjustment for the pulse of inflation. Areas we depend on such as GeoNet, which helps us understand earthquakes and tsunamis as they affect us, are seeing budget cuts of around 13%. The significant research programmes supported through the Ministry of Primary Industries are not immune, with reductions of $25 million across areas such as sustainable land management and greenhouse gas emissions reductions. We’re seeing not just funding cuts in the future, but also ‘efficiencies’ where underspending has occurred relative to signalled allocations. Relatively small new initiatives in space science, touted as an important new area while Judith Collins was Minister, appear to be petering out to nothing.

The Table of Estimates produced with Budget 2025 also allows us to look back, from an estimate for the year just ended to finalised funding in previous years. Funding for the entire tertiary education sector has flatlined then declined, following the period when Government helped stabilise the sector during the pandemic’s impacts. Up until 2019 the sector was growing consistently. Although the current budget is consistent with the pre-2019 trend in dollar terms, it doesn’t account for the recent pulse of inflation. Institutional budgets are undergoing increasing stress and provide little solace to top research teams who miss out or are now deemed ineligible for contestable research funding such as the Marsden fund.  A very disappointing case is the significant cuts to the Health Research Fund, slowing the front of a pipeline into an innovation ecosystem where New Zealand has global companies.

When last year’s budget emerged with cuts to science, we noted that our hope for this year sat with Sir Peter Gluckman’s Science System and University Advisory Groups (SSAG and UAG) to make a case for future funding. The first SSAG report made a very strong case, in part noting that we should focus more on the foundation that core public research investment provides. When carried out with sufficient quality, core public research investment of about 0.6% of GDP ensures that additional investments by government and business have strong payoffs. These payoffs across the economy have been tallied as an average of $11 for every dollar invested in Europe, or $5–20 for every dollar invested in Australia. The government is calling for that further investment, but we continue to undermine the foundation that’s needed for these payoffs to be reliable. 

This year’s budget allows us to update our analysis showing how far short of the 0.6% of GDP target we fall. We advocate for alternative budgets that initially restore core public research investment to inflation-adjusted 2019 levels and then proceed to the 0.6% target over 5 years.” 

1 How to grow a deep tech economy, but for real this time - Newsroom; NZ Budget 2025: science investment must increase as a proportion of GDP for NZ to innovate and compete: https://newsroom.co.nz/2025/05/19/how-to-grow-a-deep-tech-economy-but-for-real-this-time/

2  https://www.mbie.govt.nz/assets/science-system-advisory-group-report.pdf

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