8 Aug 2013

Union says scientists concerned about future

10:03 pm on 8 August 2013

The Public Service Association says Callaghan Innovation's decision to stop a subsidiary from signing a multimillion-dollar contract for telescope lenses is symptomatic of major reorganisation.

The union says members are concerned that the restructuring could fragment New Zealand's research and development capabilities.

Callaghan Innovation - a Crown entity that manages a $140-million-a-year portfolio of government funding and grants - has stopped subsidiary Kiwistar from signing a $2.4 million contract with the Australian Astronomical Observatory to develop the lenses.

It says it made the decision because it was uncomfortable with the high risk involved in the contract's terms.

But PSA national secretary Richard Wagstaff says the move is part of the wider issue of restructuring science and technology capabilities within the Crown entity.

Mr Wagstaff says about 60 research and development staff are to be transferred into other organisations such as universities and he gets the impression the amount of change has scientists concerned about their future.

The Association of Scientists says it beggars belief that the science funding organisation has pulled the plug on the Hutt Valley firm producing telescope lenses.

Spokesperson James Renwick says the decision seems very much at odds with the vision of the late Sir Paul Callaghan, who argued that New Zealand's future lies in exploiting high-value niche manufacturing opportunities.

"The experience with the Fonterra scare tells us that it's dangerous ground to rely too much on one sector of the economy and Sir Paul said for years that we have a very innovative workforce and we've had all sorts of high-tech success stories."