Submission to the Senate Community Affairs Legislation Committee Inquiry into the Medical Research Future Fund Bill 2015 and the Medical Research Future Fund (Consequential Amendments) Bill 2015

This submission by the Medical Research Future Fund (MRFF) Action Group to the Senate Community Affairs Legislation Committee inquiry into the Medical Research Future Fund Bill 2015 and its Consequential Amendments Bill is broadly supportive of both Bills, noting that earlier governance concerns were resolved by Government amendments passed by the House on 22 June 2015. It supports the definition of medical research, the transfer of the Health and Hospitals Fund balance, the Australian Medical Research Advisory Board, and the inclusion of the National Health and Medical Research Council (NHMRC) CEO on that Board, while recommending consumer representation. It proposes broadening the definition of medical innovation beyond treatments to cover diagnosis and prevention, and suggests alternative wording. To improve transparency, it asks that the Minister be required to obtain and consider independent expert advice before directing disbursements under clauses 20, 25 and 29, that public competitive recommends applications be the norm, and that financial details of payments under clauses 20, 26 and 29 be published online, with reasons given when competitive processes or expert advice are not followed. It recommends amending clause 34 so the Fund’s capital is preserved in real rather than nominal terms, given the $20 billion cap. Citing the Financial System Inquiry, the Medical Research Commercialisation Fund and Novartis’s $200 million purchase of Spinifex, it also proposes adding support for medical innovation as an ancillary investment object so part of the MRFF’s portfolio could be invested in early-stage companies.