Note to Editors: The following speech was delivered in Parliament today by DA Shadow Minister of Science and Technology, Dr Annelie Lotriet MP, during the Budget Vote on Science and Technology.
Honourable Chairperson,
The role and challenges of Science and Technology were brought to the world’s attention when scientists around the world decided to march for science on 22 April this year.
South Africa’s scientists joined by having a march in Durban. These marches highlighted the critical role of Science and Technology in all of our lives.
The message at the marches was clear: we all benefit from the products of science, technology and innovation. However, we seldom ask or consider how science, technology and innovation (STI) impact on our lives and what is needed to ensure that we continue to benefit from STI.
Without science, technology and innovation we will not be able to address critical and life threatening challenges such as food security, clean water, sufficient energy, preventing and treating diseases, epidemics and climate change.
The investment in Research and Development is crucial for the health, social and economic welfare and growth of any country. Without scientists, researchers and investment in STI, a country cannot develop and progress.
Scientific knowledge should in fact underpin government policy.
Hence, it is essential that there is sustained, adequate and strategic support by government and that an environment is created that will encourage investment in STI.
A country cannot afford to fall behind in the field of STI, as the cost to catch up, has to be measured not only in increased costs, but also missing out on innovation opportunities and knowledge acquisition.
However, not falling behind does not mean that it is sufficient to just maintain the status quo. There is the added challenge of staying abreast with a technological revolution such as the Fourth Industrial Revolution that will fundamentally alter our world.
Our country cannot afford to be behind these developments. The Fourth Industrial Revolution has an impact on almost every industry and entire systems of production and management will be transformed. It also has the potential to raise income levels and to improve the quality of life of people.
The Department of Science and Technology has to be at the forefront of this Revolution. Not only in the sense of enabling research and development in the fields of artificial intelligence, robotics, the Internet of Things, 3-D printing, nanotechnology, biotechnology, big data and so forth, but also in terms of research on the effect this revolution will have on jobs, inequality and society as a whole.
All of this however, requires sufficient funding and support.
The question is, does this budget do this?
The budget for the department has increased from R7.4 billion in 2016-17 to R7.5 billion in 2017-18.
Although any increase is welcomed, even as modest, as 1.7%, the reality is that there is in fact a budgetary decrease of 4.3% when inflation is taken into consideration. In other words, the budget for Science and Technology has not increased in real terms.
Not only is inflation a problem, our researchers also have to compete internationally. Equipment, journals and other resources are priced in foreign currency and a weak local currency creates a major obstacle.
According to the World Economic Forum 2016 Global Information Technology Report, the largest barrier in South Africa is reversing the trend of a deteriorating business and innovation environment. There is a deterioration in South Africa’s technology and venture capital availability, government procurement of the latest technologies and the time and procedures it takes to start a business.
Investment in science and R&D plays an important role in raising economic productivity. Stimulating innovation can lead to start-ups, SMMEs and jobs.
However, a concern that was also raised was the bureaucratic stumbling blocks that innovators face when they want to take their innovations to the level of commercialisation especially by starting small businesses.
In a country where we have almost 9 million unemployed people, this is the area where it should be made as easy as possible to become an innovator and to create jobs. It is therefore mind boggling why the ANC rejected the DA’s Red Tape Bill that was designed to make it easier for SMME’s to do business and to create jobs.
The harsh reality in 2017, following the latest decisions by President Zuma, is that we unfortunately now also have to factor in the effect of the country being downgraded to sub investment grade. This will have a negative impact on foreign investment in R&D so desperately needed and will also lead to capital outflow.
This can have a serious effect on the level of investment by local businesses in R&D. Up to now government has been the largest spender on R&D as opposed to the situation in other countries where business drives R&D spend.
This does not auger well for our science institutions. An institution such as the Human Sciences Research Council (HSRC) is dependent on external funding for research. Currently 52% of its budget comes from government and with a cut of R20 million in its budget there is the possible danger of retrenchments. There is a real concern, given the current economic situation, whether the HSRC can remain a going concern. South Africa cannot afford to lose one of the pillars of research.
Another concern that was raised by a number of the entities when the Portfolio Committee interacted with them, was the issue of duplication on the one hand, and fragmentation on the other. It is becoming increasingly important to address this, given the current economic situation. Minister, hopefully this will be addressed in the revised White Paper.
I earlier referred to the international science marches and one of the reasons for these marches is the current international threat to the science project. This is most prominent in the Trump administration in the USA where there have been severe cuts in the science and technology budgets. This concern was also raised by some of the department’s entities as this could have a negative impact on funding from the USA.
These are realities that have to be taken into account and there will have to be contingency planning from the side of government to support the entities affected by this.
Minister, this department is referred to as the “Good News” department. As usual the department and the entities have to be commended for the excellent work they do. However, we cannot continue to expect of them to perform wonders when their financial support is dwindling. Something is going to give.
The ANC-government has not been able to successfully utilise the country’s science and technology potential for sustainable growth and development.
The DA understands the critical role science and technology has to play. And in terms of our vision of freedom, fairness and opportunity, our Innovation policy places innovation at the centre of economic growth and job creation. It focuses on greater coordination and cooperation between the different role players and a simplified coordinated funding system. This is the only way we can provide a bright and sustainable future for generations to come.
This is elegantly described by astrophysicist Neil deGrasse Tyson:
“Once you have an innovation culture, even those who are not scientists or engineers – poets, actors, journalists – they, as communities, embrace the meaning of what it is to be scientifically literate. They embrace the concept of an innovation culture. They vote in ways that promote it. They don’t fight science and they don’t fight technology”.