DEED OF AGREEMENT 2020–2030€¦ · Hort Innovation’s Eligible R&D Expenditure; and (b) satisfactory substantiation that Hort Innovation has met all the requirements set out in

1 Hort Innovation Deed of Agreement

DEED OF AGREEMENT 2020–2030

Parties

The Minister for Agriculture, Drought and Emergency Management on behalf of the Commonwealth of Australia represented by the

Department of Agriculture, Water and the Environment (ABN 34 190 894 983)

and

Horticulture Innovation Australia Limited (Hort Innovation) (ABN 71 602 100 149)

Date: 24 June 2020


Contents RECITALS ......................................................................................................................................................... 3

PART 1—GENERAL REQUIREMENTS ................................................................................................................ 4

DEFINITIONS .............................................................................................................................................. 4

AGREEMENT AND TERM ........................................................................................................................... 8

GOVERNING LAW AND JURISDICTION ...................................................................................................... 8

TERMINATION ........................................................................................................................................... 8

RESOLUTION OF DISPUTES ...................................................................................................................... 10

COMMUNICATION, ACCESS AND INFORMATION ................................................................................... 10

NOTICE .................................................................................................................................................... 12

PART 2—MANAGEMENT AND GOVERNANCE OF HORT INNOVATION ........................................................... 13

CORPORATE GOVERNANCE..................................................................................................................... 13

ROLE OF HORT INNOVATION .................................................................................................................. 13

PERFORMANCE ....................................................................................................................................... 13

CONSULTATION AND GUIDELINES .......................................................................................................... 15

ANNUAL REPORTS ................................................................................................................................... 16

STRATEGIC PLAN ..................................................................................................................................... 17

PART 3—ACTIVITIES AND FUNDING .............................................................................................................. 18

PAYMENT OF FUNDS ............................................................................................................................... 18

MANAGEMENT OF THE FUNDS ............................................................................................................... 19

APPLICATION OF THE FUNDS .................................................................................................................. 20

ACKNOWLEDGEMENT OF FUNDING ....................................................................................................... 20

INFORMATION ON ACTIVITIES ................................................................................................................ 21

SIGNING PAGE ............................................................................................................................................... 22

AGREEMENT DATE: 24 June 2020

BETWEEN


The MINISTER FOR AGRICULTURE, DROUGHT AND EMERGENCY MANAGEMENT, ON BEHALF OF THE COMMONWEALTH OF AUSTRALIA, represented by the DEPARTMENT OF AGRICULTURE, WATER AND THE ENVIRONMENT ABN 34 190 894 983, GPO Box 858, Canberra ACT 2601 ([email protected]) (Commonwealth)

HORTICULTURE INNOVATION AUSTRALIA LIMITED ABN 71 602 100 149, having its registered office at Level 7, 141 Walker Street, North Sydney NSW 2060 ([email protected]) (Hort Innovation).

AND

(collectively, ‘the parties’)

RECITALS A. Hort Innovation has been declared as the industry services body for the Australian

horticultural industry under subsection 9(1) of the Horticulture Marketing and Research and Development Services Act 2000 (Cth) (the Act).

B. Following a request from Hort Innovation, by declaration of the Minister, Hort Innovation ceased to be the industry export control body, on and from 1 November 2015.

C. Subsection 12(1) of the Act allows the Minister to enter into a deed of agreement with an industry services body, in this case, Hort Innovation.

D. The Commonwealth has developed Performance Principles to guide Hort Innovation performance under this Agreement.

C. In that context, the parties have agreed to enter into a deed of agreement on the terms and conditions set out in this Agreement, including applying the Performance Principles set out in this Agreement.


PART 1—GENERAL REQUIREMENTS

DEFINITIONS

Words not defined below will have the same meaning as given by the Act.

In this Agreement, unless the contrary intention appears:

‘Act’ means the Act identified in Recital A.

‘Agreement’ means this deed of agreement, as varied from time to time, including any schedules and annexures to it.

‘Agreement Date’ means the date on which the later of both parties have signed this Agreement.

‘Agri-Political Activity’ means activities that involve engaging in, or financing with Levy Funds or Matching Payments, any form of external or internal political campaigning, including: (a) encouraging or supporting a campaign for the election of a candidate, person or party

for public office or for the adoption of particular policies of political parties; (b) promoting a particular political party’s policy over another political party’s policy; (c) representing the views of Industry as being those of Hort Innovation or the Australian

Government; or (d) advocating that the Commonwealth or a State or Territory Government adopt a

particular policy. The following activities do not, on their own, constitute Agri-Political Activity: (a) Hort Innovation funding or commissioning research, or publishing a report relating to

research in the Industry; (b) Hort Innovation making public statements or providing information to the Industry on

matters related to Hort Innovation's objects in the proper performance of Hort Innovation's functions; and

(c) another person, engaged in agri-political activity or advocacy, using a report or other publication prepared or financed by Hort Innovation in accordance with this Agreement.

‘Annual Performance Meeting’ means the meeting referred to in clause 11.1.

‘Annual Report’ means a report prepared by Hort Innovation in accordance with clause 12.1.

‘Australian Accounting Standards’ means the standards of that name made by the Australian Accounting Standards Board in accordance with subsection 334(1) of the Corporations Act.

‘Balanced Portfolio’ means an RD&E investment portfolio incorporating an appropriate blend of issues of national importance based on government and Levy Payer priorities that seeks to balance short, medium and long term, high and low-risk, and strategic and adaptive research needs including consideration of regional variations and needs.

‘Business Day’ means, in relation to the doing of any action in a place, any day other than a Saturday, Sunday or a public holiday in that place.

‘Chair’ means the Chair or the Chairperson of Hort Innovation.

‘Confidential Information’ means all information that the parties: (a) agree to treat as confidential by notice to each other after the Agreement Date; or (b) otherwise know, or reasonably ought to know, is confidential.

‘Corporations Act’ means the Corporations Act 2001 (Cth).

‘Director’ means a director of Hort Innovation appointed in accordance with the constitution of Hort Innovation.

‘Electronic Communication’ has the same meaning as in the Electronic Transactions Act 1999 (Cth).

‘Excess Matching Payment’ means any amount of Matching Payment in a financial year that exceeds 0.5% of the amount of the Gross Value of Production of the horticultural industry for that financial year.

‘Extension’ means facilitating the adoption of the outputs from R&D Activities by persons or organisations engaged in or with the Industry and other stakeholders by way of activities that educate and inform them about opportunities for change or that develop their capacity and/or capability to adopt changes.

‘Eligible R&D Expenditure’ means expenditure on activities that qualify as R&D Activities.

‘Financial Year’ means a period of 12 months commencing at the start of 1 July in one year and ending at the end of 30 June in the following year.

‘Funds’ means each of the following: (a) Levy Funds; (b) Matching Payments; (c) income earned or derived by Hort Innovation from Funds referred to in paragraphs (a)

and (b); and (d) the proceeds of the sale or other disposition of assets acquired with the Funds

referred to in paragraphs (a) to (c).



‘Gross Value of Production’ means the amount determined by the Secretary before 31 October next following a financial year of the gross value of production of the horticultural industry for the financial year.

'GST’ has the same meaning as it has in section 195-1 of the GST Act.

‘GST Act’ means A New Tax System (Goods and Services Tax) Act 1999 (Cth).

‘Guidelines’ means each of the following: (a) the Australian Government’s Science and Research Priorities; (b) the Australian Government’s Rural Research, Development and Extension Priorities; (c) the National Primary Industries Research Development and Extension Framework; (d) the Levy Principles and Guidelines, being the guideline relating to the introduction of

new levies or changes to existing levies; (e) the non-binding companion document to this Funding Agreement; and (f) other guidelines or priorities of which the Commonwealth notifies Hort Innovation in

writing from time to time.

‘Industry’ means the horticultural industry.

‘Industry Representative Organisation’ means an Industry peak body or a body established for the purpose of, or substantially engaged in, Agri-Political Activity.

‘Insolvency Event’ means: (a) Hort Innovation disposes of the whole or part of its assets, operations or business other

than in the ordinary course of business; (b) Hort Innovation ceases to carry on business; (c) Hort Innovation ceases to be able to pay its debts as they become due; (d) any step is taken by a mortgagee to take possession or dispose of the whole or part of

Hort Innovation’s assets, operations or business; (e) any step is taken to enter into any compromise or arrangement between Hort

Innovation and its creditors or a class of them; or (f) any step is taken to appoint a receiver and manager, a trustee in bankruptcy, a

provisional liquidator, a liquidator, an administrator or other like person of the whole or part of Hort Innovation’s assets, operations of business.

‘Levy’ means a levy or charge required to be paid under relevant levies and charges legislation and referred to under the Act.

‘Levy Funds’ means the amounts payable under the Act by the Commonwealth to Hort Innovation that are not Matching Payments.

‘Levy Payer’ means any person who is required to pay a Levy that is attached to Hort Innovation.


‘Marketing Activities’ means marketing, advertising or promotion of the Industry and its products, but does not include R&D Activities.

‘Matching Payments’ means the amounts by that name payable under the Act by the Commonwealth to Hort Innovation.

‘Minister’ means the Commonwealth Minister who from time to time has responsibility for the Act and includes a delegate of the Minister under the Act.

‘Performance Principles’ means the principles set out in clause 10.2.

‘Privacy Act’ means the Privacy Act 1988 (Cth).

‘R&D’ and ‘R&D Activities’ has the meaning given to ‘research and development’ in the Act.

‘RD&E’ means R&D Activities and Extension.

‘R&D Expenditure’ has the same meaning as ‘eligible R&D expenditure’ in the Act.

‘RDC’ means a rural research and development corporation existing pursuant to the Primary Industries Research and Development Act 1989 (Cth) or the Wine Australia Act 2013 (Cth) or established as an industry owned corporation and governed by specific legislation.

‘Rural Research and Development Priorities’ means the priorities communicated to Hort Innovation from time to time by the Minister.

‘Secretary’ means Secretary of the department.

‘Skills Based Board’ means a board of directors which can demonstrate collective expertise against a range of relevant areas, which must include each of the following:

(a) governance, risk and compliance;

(b) finance, accounting and audit;

(c) R&D, innovation, technology and technology transfer, commercialisation and adoption

of R&D;

(d) product promotion and marketing (including communications);

(e) exports and export market development;

(f) horticulture industry knowledge, including practical growing and/or production

experience; and

(g) public policy and administration.

‘Strategic Plan’ means a plan prepared by Hort Innovation in accordance with clause 13.

‘Transition Out Plan’ has the meaning given in clause 4.4.

‘Voluntary Contributions’ means payments made to Hort Innovation for the purpose of funding R&D and Marketing Activities, excluding payments of Levy Funds and Matching Funds.


AGREEMENT AND TERM 2.1 This Agreement takes effect on the Agreement Date and, subject to clause 2.2 and 2.3,

expires 10 years after the Agreement Date. 2.2 The parties must, not less than six months before the expiry of the Agreement,

commence negotiations in good faith with a view to negotiating a new agreement either on the same terms and conditions as this Agreement or on different terms and conditions that are agreed by the parties.

2.3 If the parties are unable to agree the terms of a new agreement to replace this Agreement within that six month period, then the parties may extend the Agreement for a period of at least six months. The parties may agree to extend the Agreement any number of times.

2.4 This Agreement: (a) constitutes the entire agreement between the parties as to its subject matter;

and (b) in relation to that subject matter, supersedes any prior understanding or

agreement between the parties and any prior condition, warranty, indemnity or representation imposed, given or made by a party.

2.5 Any former funding agreement between the parties terminates upon the commencement of this Agreement, without prejudice to any rights or obligations of either party that have accrued prior to the date of termination.

2.6 The parties acknowledge and agree that: (a) Hort Innovation must, at all times, perform its obligations under this Agreement

in accordance with all relevant legislation in force from time to time, including the Act, the Corporations Act and the Privacy Act 1988; and

(b) this Agreement does not set out all of the statutory conditions and obligations that apply to Hort Innovation and does not in any way vary or reduce Hort Innovation’s statutory conditions and obligations.

GOVERNING LAW AND JURISDICTION 3.1 This Agreement is governed by the laws applicable in the Australian Capital Territory. 3.2 Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of

the courts of the Australian Capital Territory in relation to matters arising in connection with this Agreement.

TERMINATION 4.1 Without limiting any other rights or remedies available to the Commonwealth under

this Agreement, the Commonwealth may terminate this Agreement in whole or in part, effective immediately, by giving notice to Hort Innovation, if:


(a) the Act is repealed, is no longer in force or is substantially or materially amended in a manner inconsistent with the continued operation of this Agreement in its current form; or

(b) an Insolvency Event occurs (provided that such termination is enforceable at law); or

(c) there has been a material breach of this Agreement, the Act or another law, by Hort Innovation; or

(d) there has been a change in Commonwealth policy relating to the funding of RDCs.

4.2 Without limiting any other rights available to the Commonwealth, if: (a) Hort Innovation breaches this Agreement and fails to rectify a breach within

10 Business Days of receiving a notice from the Commonwealth requiring it to do so, or within such other period as is reasonably specified by the Commonwealth in that notice, having regard to the nature of the breach; or

(b) an event has occurred which would entitle the Commonwealth to terminate the Agreement under clause 4.1,

the Commonwealth may, to the extent it is not inconsistent with the Act or any other law, by giving notice to Hort Innovation, direct Hort Innovation to do any one or more of the following: (c) in respect of a breach, rectify any breach and to provide to the Commonwealth

an explanation of the circumstances giving rise to the breach; (d) deal with all or any of the Funds in a certain way; (e) provide a Transition Out Plan to the Commonwealth in accordance with

clause 4.4; (f) comply with additional reporting requirements; and/or (g) take any other action, as specified in this Agreement.

4.3 Any notice the Commonwealth gives to Hort Innovation in accordance with clause 4.2 will specify: (a) the circumstances that gave rise to the notice; (b) the consequences of non-compliance with the notice; and (c) a reasonable time by which Hort Innovation must take the actions specified in

the notice. Transition Out Plan 4.4 The Commonwealth may request Hort Innovation to develop and submit to the

Commonwealth for approval a Transition Out Plan, as soon as reasonably possible after receipt of request.

4.5 A request for a Transition Out Plan will specify what details Hort Innovation must include in the Transition Out Plan.


4.6 The Commonwealth may: (a) approve the submitted Transition Out Plan; or (b) request that reasonable changes be made to the Transition Out Plan, prior to

giving its approval, in which case Hort Innovation must comply with any changes requested by the Commonwealth.

4.7 Prior to ceasing Hort Innovation as the industry services body under the Act, the Commonwealth will endeavour to give sufficient notice to Hort Innovation to allow Hort Innovation to implement the approved Transition Out Plan, as directed by the Commonwealth.

RESOLUTION OF DISPUTES 5.1 Except when a party seeks urgent interlocutory relief, the parties must deal with a

dispute arising under or in respect of this Agreement in accordance with the procedures set out in this clause 5 before they commence any legal proceedings.

5.2 A party claiming that there is a dispute must send the other party a written notice setting out the nature of the dispute.

5.3 During the 20 Business Days after a notice is given under clause 5.2 (or such longer period as may be agreed to in writing by the parties), each party must use reasonable efforts to resolve the dispute through a meeting of senior representatives of each party which are authorised to bind the party to an agreed resolution.

5.4 If the parties do not resolve the dispute at the meeting referred to in clause 5.3, the parties must refer the dispute to mediation, which must be conducted in Canberra (or elsewhere if agreed in writing between the parties), in accordance with the Resolution Institute’s Rules for Mediation, as in operation at the relevant time.

5.5 Unless otherwise agreed by the parties, the mediation will be deemed to commence on the appointment of the mediator.

5.6 Despite the existence of a dispute, each party must, unless requested in writing by the other party not to do so, continue to perform its obligations under this Agreement.

5.7 If there is no resolution of the dispute within 20 Business Days of the commencement of the mediation (or such extended time as the parties may agree in writing before the expiration of that period), then either party may commence legal proceedings in respect of the dispute.

COMMUNICATION, ACCESS AND INFORMATION Access by the Commonwealth 6.1 Subject to clause 6.2, the Commonwealth or its nominated representative may, for the

purpose of monitoring Hort Innovation performance under the Act, the Agreement and the Guidelines: (a) access premises occupied by or under the control of Hort Innovation;


(b) access data, records, accounts and other financial material and any property of the Commonwealth in the possession or under the control of Hort Innovation, its officers, employees or agents; and

(c) inspect any documentation, books and records, however stored, in the possession or under the control of Hort Innovation, its officers, employees, or agents.

6.2 The Commonwealth will: (a) provide reasonable notice to Hort Innovation in respect of a request to access or

inspect under clause 6.1; and (b) comply with Hort Innovation’s reasonable safety and security requirements in

undertaking that access. 6.3 Hort Innovation is not required to provide access to records over which it claims legal

professional privilege unless Commonwealth access is required for the purposes of an audit or review by the Australian National Audit Office.

6.4 For the purposes of clause 6.1, Hort Innovation must: (a) cooperate with the Commonwealth; (b) provide any necessary access or information; and (c) provide all information in a data format and storage medium that is able to be

accessed and used by the Commonwealth. Confidential Information 6.5 Each party must, in respect of Confidential Information given to it by the other party:

(a) use that Confidential Information only for the purposes of administering or enforcing the Act or this Agreement or for other purposes for which it is provided; and

(b) not disclose that Confidential Information to any person (other than employees or advisers of that party with a need to know such Confidential Information for the purposes of administering or enforcing this Agreement or the Act or other purposes for which it is provided) without the prior approval in writing from the other party and subject to complying with any reasonable conditions or restrictions imposed by the other party in giving approval.

6.6 A party will not be in breach of clause 6.5 if it discloses Confidential Information to the extent that the disclosure is: (a) required by law or by a lawful requirement of any government body; or (b) made to a Commonwealth Minister or in response to a request by a House or a

Committee of the Parliament of the Commonwealth of Australia, provided that the party notifies the recipient that the information is confidential.


Intellectual Property 6.7 Hort Innovation grants the Commonwealth a permanent, irrevocable, royalty-free

worldwide non-exclusive licence to use, reproduce, modify, adapt, distribute, sublicense, communicate and publish all or part of any report, plan or other material provided to the Commonwealth under the Act or this Agreement, with the exception of: (a) any Confidential Information; and (b) any material, including any image or text, that is identified by Hort Innovation as

being material in which a third party owns all or part of the Intellectual Property Rights, and in respect of which Hort Innovation does not have the right to grant such a licence to the Commonwealth.

NOTICE Service of notices 7.1 A party giving notice under this Agreement must do so in writing or by Electronic

Communication: (a) directed to the recipient’s address specified in the definition of the parties, as

varied by any notice; or (b) hand delivered or sent by prepaid post, facsimile or Electronic Communication

to that address. Effective on receipt 7.2 A notice given in accordance with clause 7.1 is taken to be received:

(a) if hand delivered, on delivery; (b) if sent by prepaid post, five (5) Business Days after the date of posting; (c) if sent by facsimile, when the sender’s facsimile system generates a message

confirming successful transmission of the total number of pages of the notice, unless, within one Business Day after that transmission, the recipient informs the sender that it has not received the entire notice; or

(d) if sent by Electronic Communication, at the time that would be the time of receipt under the Electronic Transactions Act 1999 (Cth),

but if the delivery, receipt or transmission is not on a Business Day or is after 5.00pm on a Business Day, the notice is taken to be received at 9.00am on the next Business Day.


PART 2—MANAGEMENT AND GOVERNANCE OF HORT INNOVATION

CORPORATE GOVERNANCE 8.1 Hort Innovation must maintain, implement and regularly review a framework of good

corporate governance to ensure proper use and management of the Funds and the Voluntary Contributions. In maintaining the governance framework, Hort Innovation should draw on best practice guidance as appropriate.

8.2 Hort Innovation must maintain a Skills Based Board of Directors with the necessary skills and experience to effectively govern Hort Innovation.

ROLE OF HORT INNOVATION 9.1 The parties acknowledge that the industry services body should not engage in

Agri-Political Activities. 9.2 Hort Innovation must not, at any time, act as an Industry Representative Organisation

or reference or provide information which implies to stakeholders or trading partners that Hort Innovation is an Industry Representative Organisation.

9.3 Hort Innovation must, at all times, act in an apolitical and unbiased manner. 9.4 Hort Innovation must not engage in Agri-Political Activity. 9.5 Hort Innovation may seek advice from the Commonwealth on whether a particular

activity would constitute an Agri-Political Activity. 9.6 The Commonwealth may issue a notice requiring Hort Innovation to take action to

address Agri-Political Activities.

PERFORMANCE Performance Principles 10.1 Subject to clause 2.6, Hort Innovation must at all times act in accordance with and

uphold this Agreement, including the Guidelines and the Performance Principles under clause 10.2.

10.2 The Performance Principles are: (a) to engage stakeholders to identify RD&E priorities and activities that provide

benefits to the Industry; (b) to ensure RD&E priorities and activities (and Marketing Activities) are strategic,

collaborative and targeted to improve profitability, productivity, competitiveness and preparedness for future opportunities and challenges through a Balanced Portfolio;

(c) to undertake strategic and sustained cross-industry and cross sectoral collaboration that addresses shared challenges and draws on experience from other sectors;


(d) for governance arrangements and practices to fulfil legislative requirements and align with contemporary Australian best practice for open, transparent and proper use and management of Funds; and

(e) to demonstrate positive outcomes and delivery of RD&E and marketing benefits to Levy Payers and the Australian community in general, and show continuous improvement in governance and administrative efficiency.

10.3 If, at any time, Hort Innovation identifies an inconsistency or discrepancy between the Performance Principles and its obligations under any law, regulation or government policy, it must: (a) notify the Commonwealth of the nature of the inconsistency or discrepancy, as

soon as reasonably practicable; (b) continue at all times to act in accordance with the Performance Principles (to the

extent this is consistent with applicable law, regulation or government policy); and

(c) if requested by the Commonwealth, discuss possible resolutions to deal with the identified discrepancy and implement any such resolutions as may be agreed.

Review of Performance 10.4 Hort Innovation must implement appropriate processes, on an ongoing basis during

each Financial Year, to: (a) monitor and evaluate its performance against the Performance Principles; and (b) demonstrate its performance against the Performance Principles to Levy Payers

and other stakeholders (demonstrations could include updates by newsletter, meetings, website, email or annual report).

10.5 The Commonwealth may review Hort Innovation’s performance and compliance with the Act, this Agreement, and the Guidelines at any time during the term of this Agreement.

10.6 The Commonwealth may from time to time (but no more often than once every three years) request Hort Innovation to obtain, at Hort Innovation’s expense, an independent review on Hort Innovation’s performance against the Performance Principles. In that case, the following process will apply: (a) the Commonwealth and Hort Innovation will agree on an independent external

consultant to review Hort Innovation’s progress and achievements against the Performance Principles and prepare an independent review.

(b) Hort Innovation must engage, and meet the cost of, the independent external consultant who is engaged to provide an independent review.

(c) the independent external consultant will be required to provide the independent review simultaneously to both Hort Innovation and the Commonwealth within 20 Business Days of concluding the draft independent review.


(d) the Commonwealth and Hort Innovation will meet and discuss any areas of underperformance identified in the independent review and agree on an approach for Hort Innovation to address any such areas of underperformance.

(e) Hort Innovation must implement any agreed actions and comply with any reasonable directions issued by the Commonwealth in relation to addressing areas of underperformance.

10.7 The Commonwealth may issue a notice requiring Hort Innovation to take actions to address issues identified: (a) in the independent review; or (b) in relation to Hort Innovation’s performance against the Performance Principles, within the timeframe specified in the notice or as otherwise agreed by the parties.

10.8 Hort Innovation must make available to its stakeholders any information relating to performance and/or the independent review (other than Confidential Information) as soon as reasonably practicable.

CONSULTATION AND GUIDELINES 11.1 The Chair, or in the Chair’s absence a Director nominated by the Chair, must arrange a

meeting between the parties at least once per Financial Year (Annual Performance Meeting) to: (a) demonstrate to the Commonwealth Hort Innovation’s performance and

achievement of the Performance Principles; (b) discuss and demonstrate implementation of measures taken to address any

underperformance identified in an independent review, Annual Performance Meetings, and/or other fora;

(c) discuss issues relating to Hort Innovation’s compliance with the Act, this Agreement and the Guidelines; and

(d) discuss other matters relevant to Hort Innovation or its Industry. 11.2 The Annual Performance Meeting may be undertaken in any format that is agreed in

writing between the parties. (That may be, for example, a structured meeting, a discussion, a presentation of reports and documents, a presentation of an independent review or report, a demonstration of outcomes, an interactive site visit or another format proposed by Hort Innovation). For clarity, Hort Innovation must ensure that the Commonwealth has adequate time to ensure appropriate Commonwealth representation and to arrange any necessary travel, in advance of the Annual Performance Meeting.

11.3 Either party may, at any time, request additional meeting(s) with the other party to discuss matters arising under the Act, this Agreement, or the Guidelines, or otherwise related to Hort Innovation or the Industry.


Changes to the Guidelines 11.4 The Commonwealth may vary the Guidelines and/or impose new Guidelines from time

to time. 11.5 The Commonwealth must provide reasonable notice of any variations to the

Guidelines, or new Guidelines to Hort Innovation, and give Hort Innovation a reasonable period to implement the effects of the variation or new Guidelines.

ANNUAL REPORTS 12.1 By 31 October of each year, Hort Innovation must prepare and publish on its public

website an Annual Report for the preceding financial year, that complies with the financial reporting and other reporting requirements in Chapter 2M of the Corporations Act and includes: (a) sources of income allowing for separate identification of Levy Funds, Matching

Funds and Voluntary Contributions; (b) significant R&D Activities and transactions undertaken in the year in the conduct

of Hort Innovation’s functions as the Industry Services Body; (c) the full cost of the R&D Activities and Marketing Activities; (d) progress made in implementing the Strategic Plan and Performance Principles

including progress against any key performance indicators; (e) key RD&E and marketing deliverables and associated outcomes achieved; (f) an assessment of the efficiency and effectiveness of Hort Innovation’s

investments; (g) material changes to Hort Innovation’s membership; (h) how Hort Innovation responded to any directions or Rural Research and

Development Priorities given by the Minister under the Agreement or the Guidelines;

(i) consultation with Levy Payers and Industry Representative Bodies on: a. Hort Innovation’s Strategic Plan; and b. RD&E and Marketing Activities;

(j) Hort Innovation’s contributions to relevant Horticulture Industry sectoral and cross-sectoral strategies, including the strategies under the RD&E Framework;

(k) details of senior executive and Board remuneration in the format required by the relevant Australian Accounting Standards;

(l) Research and Development and marketing agreements entered into by Hort Innovation with third parties;

(m) corporate governance practices in place during the Financial Year; (n) the rationale for the mix of projects included in the Balanced Portfolio; and (o) other matters notified to Hort Innovation by the Commonwealth.


STRATEGIC PLAN 13.1 The Parties acknowledge that, as at the date of this Agreement, Hort Innovation has,

and will maintain, an approved Strategic Plan that has regard to the Performance Principles and Guidelines.

13.2 Hort Innovation must implement and maintain a Strategic Plan for its portfolio and must: (a) consult with the stakeholders, including the Commonwealth, during the term of

this Agreement to ensure that its Strategic Plan has regard to the Principles and Guidelines; and

(b) publish the Strategic Plan (and any updates) on its public website. 13.3 The Strategic Plan may include R&D Activities for Australian horticulture products to

address market access and international trade activities.


PART 3—ACTIVITIES AND FUNDING

PAYMENT OF FUNDS Levy Payments 14.1 The Commonwealth will pay Levy Funds to Hort Innovation in accordance with the

Act. 14.2 The Commonwealth will pay the Levy Funds soon as reasonably practicable after the

Levy Funds have been received in cleared funds. Matching Payments 14.3 The Commonwealth will pay Matching Payments to Hort Innovation in accordance

with the Act. 14.4 The Commonwealth will pay the Matching Payments to Hort Innovation as soon as

reasonably practicable after receiving from Hort Innovation: (a) a correctly rendered claim for payment identifying an amount that is one-half of

Hort Innovation’s Eligible R&D Expenditure; and (b) satisfactory substantiation that Hort Innovation has met all the requirements set

out in the Act and under this Agreement to trigger its right to receive the Matching Payments.

14.5 For the purposes of clause 14.3(b), a certificate stating compliance with the relevant requirements of the Act and this Agreement, signed by the Executive Director or the Chief Financial Officer (or equivalent) of Hort Innovation, is satisfactory substantiation, in the absence of any evidence to the contrary.

14.6 Hort Innovation’s final claim for Matching Payments in respect of Eligible R&D Expenditure made in a Financial Year must be supported by an independent audit report of Hort Innovation’s financial statements. (This work may be completed in accordance with the Standard on Assurance Engagements ASAE 3100.)

14.7 Upon request, Hort Innovation must provide a reconciliation between the total amount of R&D Expenditure on which its claim for Matching Payments for the Financial Year is based and the amounts shown in the audited financial statements.

Hort Innovation Payments 14.8 Hort Innovation will pay the Commonwealth:

(a) any expense incurred by the Commonwealth in collection, recovery and administration of Levy Funds;

(b) any refunds paid by the Commonwealth in respect of Levy Funds; and (c) any Excess Matching Payments.

14.9 The Commonwealth may invoice Hort Innovation from time to time for the amounts identified in clause 14.8 and the parties agree that Hort Innovation will have made a payment by either:


(a) the Commonwealth reduces a payment of Levy Funds and/or Matching Funds by an amount equal to the payment required; or

(b) Hort Innovation makes the payment to the Commonwealth by direct deposit or other method agreed between the parties.

Estimates and Forecasts 14.10 Upon request by the Commonwealth, Hort Innovation must provide to the

Commonwealth: (a) an indicative estimate of the amount of the Levy Funds and Matching Payments

it expects the Commonwealth to pay to it under the Act, for the current and future Financial Years as requested by the Commonwealth; and

(b) a monthly breakdown of the estimated amount of Levy Funds and Matching Payments that it expects the Commonwealth to pay to it under the Act in the current Financial Year and the next Financial Year.

14.11 The Commonwealth may, if requested, give Hort Innovation an estimate of the amount of costs incurred by the Commonwealth in relation to the collection, recovery and administration of the Levy Funds and Matching Payments for the Financial Year.

14.12 The Commonwealth will, by 31 October in each Financial Year, advise Hort Innovation of the final costs incurred by the Commonwealth in relation to the collection, recovery and administration of the Levy Funds and Matching Payments for the previous Financial Year.

GST 14.13 The Commonwealth will pay Levy Funds and Matching Funds on a GST exclusive basis

to Hort Innovation. 14.14 Unless otherwise indicated, all consideration for a supply under this Agreement is

exclusive of any GST. The recipient of a taxable supply under this Agreement on receipt of a tax invoice must pay the supplier any GST imposed. No party may claim from the other an amount for which an input tax credit or decreasing adjustment can be obtained. GST and GST related terms in this clause 14 have the meaning that they have in the A New Tax System (Goods and Services Tax) Act 1999.

MANAGEMENT OF THE FUNDS 15.1 Hort Innovation must establish and maintain all necessary accounting systems and

financial procedures and controls, as required by the Act, the Corporations Act and this Agreement.

15.2 Hort Innovation must notify the Commonwealth of the details of the systems, procedures and controls established in accordance with clause 15.1 on request.

15.3 Hort Innovation must not enter into any agency arrangement, subcontract or other outsourcing arrangement:


(a) in a manner that is inconsistent with the Agreement and Guidelines; (b) in a manner that it is not permitted by the Act or the Corporation Act; (c) for the management, allocation, or investment of Levy Funds and Matching

Funds with an Industry Representative Organisation other than procurement of goods and services from such organisation or sponsorship of Industry related events;

(d) for the management, allocation, or investment of Funds in a manner which may be viewed as engaging in Agri-Political Activity).

APPLICATION OF THE FUNDS 16.1 Hort Innovation must only spend the Funds and Voluntary Contributions:

(a) in accordance with the Act, the Corporations Act and this Agreement; and (b) in a manner that is consistent with the:

(i) Strategic Plan; (ii) Performance Principles; and (iii) Guidelines.

Other restrictions on spending the Funds 16.2 Hort Innovation must develop, implement and maintain an appropriate Balanced

Portfolio. 16.3 If Hort Innovation spends the Funds other than in accordance with this Agreement or

the Act, the Commonwealth may, by written notice to Hort Innovation, require Hort Innovation to repay all or a part of those misspent Funds to the Commonwealth within the timeframe specified in the notice.

16.4 Hort Innovation must contribute to the implementation of relevant Industry sector and cross-sectoral strategies under the National Primary Industries Research, Development and Extension Framework, as appropriate to its national leadership role in relevant Industry strategies and its support role in other relevant strategies and otherwise in a manner consistent with Hort Innovation’s Strategic Plan.

Repayment of Funds 16.5 If this Agreement is terminated, the Commonwealth may, by notice to Hort

Innovation, require Hort Innovation to repay to the Commonwealth, by the date specified in the notice, all or any part of the Funds held by Hort Innovation, excluding Voluntary Contributions and those Funds required by Hort Innovation to meet liabilities properly incurred in accordance with this Agreement and the Act.

ACKNOWLEDGEMENT OF FUNDING 17.1 Unless otherwise agreed with the Commonwealth, Hort Innovation must ensure that

all significant publications and publicity by Hort Innovation acknowledge the provision of funding by Levy Payers and the Commonwealth, as applicable.


INFORMATION ON ACTIVITIES 18.1 Hort Innovation must ensure that it documents, and communicates on its public

website (other than any Confidential Information, unless otherwise permitted by clauses 6.6): (a) any documentation required to be made public under the Act or the

Corporations Act; (b) its plans, reports and priorities; and (c) key information about its R&D and Marketing Activities.

18.2 Hort Innovation must make this Agreement available on its public website.

SIGNING PAGEEXECUTED as a deed

SIGNED, SEALED AND DELIVERED for and on behalf of theCOMMONWEALTH OF AUSTRALIA

by the Hon. David Littleproud

Minister for Agriculture, Drought and Emergency Management: in the presence of:

Jrr..*/.2^?. Date

.do.. .HuLktV>.5<?.o.Name of witness

SIGNED, SEALED AND DELIVERED for and on behalf ofHORTICULTURE INNOVATION AUSTRALIA

LIMITED, ABN 71 602 100 149in accordance with section 127 of the Corporations Act 2001 (Cth) on:

Date

Signature of Director

c

Name of Director

r^SC^

Name of Director / Secretary

Hort Innovation Deed of Agreement

Department of Agriculture, Water and the Environment 1

COMPANION TO RURAL RESEARCH & DEVELOPMENT CORPORATIONS FUNDING AGREEMENT Purpose of this document

This document provides guidance on how Rural Research and Development Corporations (RDCs) may target

activities and performance against a principles-based approach to accountability, and suggested monitoring

and reporting options. This document also outlines the general intent of each of the five principles, as well

as examples and references, for application of the principles.

This is a non-binding document with information and guidance to help RDCs to address the five

Performance Principles. It is not a Rule or binding. The information in this document may be updated or

supplemented from time to time, with plans to review the effectiveness of the principles-based approach in

2021 and 2025.

Policy context

Research and development is central to driving innovation and productivity in Australia’s agriculture sector.

RDCs have driven significant productivity growth over the last four decades by making investments to

address priorities which are important to government, industry and the general public. These investment

decisions are vital to driving productivity across the agricultural supply chain, ensuring the sector remains

internationally competitive and sustainable into the future.

RDCs are funded primarily by R&D levies (or charges) on various commodities, with matching funding from

the Commonwealth. The main function of a funding agreement between the Commonwealth and RDCs

(which is required under legislation) is to specify the terms and conditions on which money paid to the RDC

by the Commonwealth will be spent. In 2019, the RDC funding agreements were revised to streamline

arrangements, reduce the compliance burden, minimise duplication between the funding agreement and

relevant legislation, and introduce a principles-based approach to performance.

To help achieve a $100 billion agriculture sector by 2030, the Australian Government is currently

considering how the RDC system can be improved to meet future needs and be able to respond to

challenges facing the sector. Adopting contemporary governance arrangements through a principles-based

approach to RDC funding agreements is a first step towards modernising and improving the performance

and transparency of RDC investment activities.

Principles-based approach

The principles-based approach realigns the accountability of RDC Boards to be responsible for their

governance, stakeholder engagement, R&D activities, priority setting and monitoring and evaluation. It is

the Board’s responsibility to have in place appropriate documentation for governance, performance and

good business management such as annual operating plans, an evaluation plan, intellectual property plan

and risk management plan.

The five performance principles require RDCs to improve their governance, monitoring and evaluation,

stakeholder engagement, collaboration and R&D priorities. The principles are interlinked, therefore may be

achieved through common activities. Good delivery of one performance principle will likely enhance the

outcomes of other principles. It is left to each RDC’s discretion to determine how best to address and

deliver against each principle.


THE PRINCIPLES

Principle 1: Stakeholder engagement

Engage stakeholders to identify research, development and extension (RD&E) priorities and activities that provide benefits to portfolio industries.

Facilitate opportunities for stakeholders to contribute to setting RD&E priorities and activities.

Intent

The purpose of this principle is for an RDC to have reciprocal, mutually beneficial and transparent engagement and consultation with stakeholders about their key objectives, performance, activities, investments and governance. RDCs should keep in mind that the work they undertake should also contribute to public benefit or long-term outcomes for the Australian community. The Australian public has an interest in the work of RDCs owing to the significant matched contribution made to RDCs from tax payer money.

Communicating governance processes, strategies, plans and reporting to stakeholders—including the Minister and Department—strengthens the RDC’s transparency. Ensuring outcomes of RD&E activities and value of investments are transparent will contribute to demonstrating good business practices, performance and instil confidence in the organisation’s direction and priority setting.

RDC stakeholders

RDC stakeholders are primarily levy payers, their declared industry representative organisations, the Minister for Agriculture, the Department of Agriculture, Water and the Environment, and the Australian public.

Other stakeholders may include representative industry groups, supply chain businesses and processors, investors, other RDCs, Cooperative Research Centres (CRC), state governments, private sector, universities, research companies, international research collaborators, venture capitalists, entrepreneurs or international markets.

Types of engagement

Stakeholder engagement is two-way. RDCs should be appropriately responsive to stakeholder concerns by providing information and updates to stakeholders, and seek stakeholder contributions to shape RD&E.

RDCs may utilise various forms of communication including consultation, discussions, surveys, extension events, webinars, website updates, publications, newsletters, forums, and networks. These forms of communication may be tailored for the audience, and provide timely information that allows stakeholders to consider and contribute where appropriate. Communicating RD&E outcomes and how these can be applied on-farm, along the supply chain, or in markets, may result in faster and wider adoption and uptake of RD&E activities and investments.

Example: Public engagement

An RDC becomes aware that a particular animal welfare issue has been escalating as a priority for the Australian public. The RDC develops a new project to research the animal welfare concern and the impacts of current and new ethical processes for the animals. The project also surveys and tracks public opinion and prepares online resources for the public to be appropriately informed.

To ensure the matter is addressed in more detail, the RDC also includes the topic in their strategic priority settings.

The RDC promotes the projects and the outcomes to address the animal welfare concern. The RDC also prepares extension advice and assistance for industry to be aware of and adopt new practices to prevent ongoing animal welfare issues.

Monitoring and Reporting

The following considerations may be used to self-assess or provide guidance to a reviewer (independent consultant, panel or auditor) when monitoring progress against this principle:

• Who are the RDC’s key stakeholders? Has the stakeholder engagement strategy being implemented?

• How have the RDC engaged with stakeholders (and about what)?

• How have stakeholders been engaged in planning processes and R&D activities?

• How has the RDC demonstrated transparency?

• Has stakeholder satisfaction and engagement been reviewed, informed or tested through the consultation?

• How has stakeholder engagement contributed to RD&E (and marketing) outcomes?


Principle 2: Research, Development and Extension (RD&E) Activities

Ensure RD&E [and marketing] priorities and activities are strategic, collaborative and targeted to improve profitability, productivity, competitiveness and preparedness for future opportunities and challenges through a balanced portfolio.

Balancing long-term, short-term, high and low risk, and strategic and adaptive research

RD&E activities address Levy Payer and government priorities.

Intent

This principle sets out an expectation for RDCs to undertake a diverse range of RD&E activities that incorporate risk assessments, and target both short-term and long-term returns on investment. The mix of RD&E activities by RDCs should improve efficiency, productivity, competitiveness and innovation for levy payers, producers and along the supply chain, and provide public benefit of the Australian community.

R&D levies are collected to invest in systematic experimentation and analysis in any field of science, technology, economics or business to increase knowledge, build on industry objectives, conduct extension activities, innovate or improve any aspect of production, processing, storage, transport or [marketing] of the industry’s products.

Considerations

Priority setting for RDC activities and investments may take into account relevant regional and commodity variations, incorporate issues of critical national importance, and give appropriate consideration of stakeholder priorities.

When planning and preparing RD&E activities, RDCs may seek to address outcomes that:

• inform strategic industry and cross-sectoral issues

• address present and future industry needs

• develop the capacity of levy payers to identify and adopt research and development activities and results.

A balanced portfolio identifies and assesses objectives, analyses risks and develops appropriate controls to mitigate those risks to acceptable levels.



• Justification and background of projects, achievements and longer-term RD&E aspirations

• Strategic direction and priority setting of RD&E projects is regularly reviewed

• How has the R&D Plan (or Strategic Plan) been implemented and updated?

• Have stakeholders been sufficiently engaged to shape RD&E priorities and strategic plan?

• Details of long-term outcomes and deliverables of RD&E portfolio

• Have projects been monitored and evaluated? How are projects progressing to deliver objectives?

• Is the RDC undertaking collaborative, cross-sectoral and industry-wide RD&E activities?

Example: Balanced portfolio

An RDC identifies 10 priority areas, and two overarching matters for long-term research, collaboration and investment (e.g. researching trade and market access opportunities, and biosecurity risks). The RDC is also approached by another RDC to work collaboratively with them on a soil moisture research project that is relevant to both RDCs’.

In selecting and setting significant RD&E priorities for the next five years, the RDC decides that it has capacity and resources to deal with eight research projects. Therefore, to balance the portfolio, they decide to:

• address three short-term commodity specific activities (two medium-risk, and one high-risk)

• continue two ongoing medium-term commodity specific activities commenced in previous years (low risk)

• address one long-term commodity research project (medium risk) and two of the collaborative activities—one with other RDCs (medium risk) and the other by researching trade and market access opportunities for a range of commodities (high risk with extensive mitigation actions in place, includes working with the department on understanding trade relations and international priorities).

There are five items that the RDC chooses to hold over for consideration in future years and strategic planning.


Principle 3: Collaboration

Undertake strategic and sustained cross-industry and cross-sectoral collaboration that addresses shared challenges and draws on experience from other sectors.

Collaborate across the agricultural innovation system to address common challenges and opportunities

Enable broader consideration of innovations and technology and present a united approach in promoting Australia’s agriculture.

Intent

This principle encourages RDCs to collaborate across the agricultural innovation system, including with other RDCs, industry, businesses, Australian and international research organisations, entrepreneurs, innovators, government agencies, innovation hubs, and farming system groups. This is an opportunity for RDCs to generate connections and partnerships that inspire a united approach to developing cutting-edge science, transformational change and technology breakthroughs across the agricultural innovation system.

Strong collaborations across the RDC system will drive diverse RD&E outcomes and improve the efficiency of RD&E efforts. A more united approach also provides a platform to attract both local and international investors to the Australian agricultural innovation system.

Example: RDC collaboration

An RDC is developing drone technology to detect biosecurity incursions of insects on crops. Another RDC is developing drone technology for remote surveillance of water and food availability in a feedlot.

Both RDCs have similar challenges in the development stage of the drone technology, however, the end-product is for different surveillance purposes. Considering that they are seeking to use drones for remote surveillance, the two RDCs collaborate to combine efforts in the initial stage of technology development with options to specialise the cameras and flight patterns for the two different purposes.

With their combined resources and knowledge, they approach a technology developer to customise the drone and integrate the specialised infrared camera technology. An international investor is also engaged to bring further expertise and make the research a marketable product for extension and adoption by their levy-payers.



• Has the RDC built rapport with organisations and groups to collaborate with? What ongoing interactions and collaboration are being developed to deliver RD&E priorities and activities?

• Challenges identified to be addressed through cross-sectoral collaboration.

• Has the RDC progressed implementation on cross-industry collaboration based on the Guidelines?

• Details and summaries of projects that utilise or are dependent on collaboration.

• Undertake 360° feedback on RDCs effectiveness to work collaboratively and link cross-sectoral projects to strategic planning and stakeholder priorities.


Principle 4: Governance

Governance arrangements and practices to fulfil legislative requirements and align with contemporary Australian best practice for open, transparent, and proper use and management of Funds.

Good governance ensures stakeholders are well informed and have visibility of the RDC’s investments, priorities and achievements

Committee structures and corporate policies enable the RDC to manage day-to-day business activities and fulfil reporting obligations.

Intent

Organisations that expend public funds should have high levels of accountability and transparency in their governance and day-to-day activities. This principle seeks that RDCs adopt sound and transparent governance and administrative practices that give assurance to stakeholders that the RDC is operating effectively, undertaking their roles and responsibilities, appropriately managing their funds, and delivering outcomes against their strategic priorities.

Legislated and other requirements

RDCs have relevant legislation that governs how public resources are used. Requirements in legislation or the funding agreement include annual reporting, financial statements, demonstration of achieving objectives set out in a strategic plan (or R&D Plan), etc. The annual report is also a mechanism to communicate to stakeholders and the Australian public the RDC’s transparency, priorities, performance and outcomes.

The RDC Board is responsible for care and due diligence of their management practices. It is the RDC’s responsibility to have structures in place to add value, act ethically and responsibly, and provide leadership to industry. The RDC Board oversees the implementation of the organisation’s objectives, assures the integrity of the RDC’s accounting and reporting systems, monitors the effectiveness of governance practices, have procedures in place to identify gaps or opportunities for business improvement (e.g. independent reviews and audits), and sets the culture of the organisation.

RDCs should be aware of the sensitivities around advocacy and agri-political activities. As recipients of public monies (Commonwealth Matching Payments) and levy-payer funds, it is not appropriate for an RDC to engage in or to use funds for any form of external or internal political influencing or agri-political activities. Should an activity arise where an RDC is unsure of its alignment against the agri-political definition, it is recommended that an RDC liaise with the department to determine the appropriateness of the activity before proceeding.


The following considerations may be used to self-assess or provide guidance to a reviewer (independent consultant, panel or auditor) when monitoring progress and performance against this principle:

• RDCs have in place governance documentation such as RDC’s vision, roles and responsibilities for Board members and Executive, risk management, staffing, etc.

• Demonstrate that the RDC has a skills based RDC Board with a range of expertise such as accounting and finance, legal, strategic planning, industry knowledge, innovation expertise, etc.

• RDC has appropriate controls in place (such as committees, plans etc) to manage, review and mitigate risks.

• Information and records of meetings (board meetings, stakeholders, sub-committees) are maintained.

• RDC has in place plans and processes for enhancing organisational culture, succession planning and capability building.

• Financial and administrative records are maintained.

• Assurance that legislated and funding agreement requirements have been fulfilled (e.g. annual reporting, financial statements, accounting processes etc).

Example: Intellectual Property Management Plan

An RDC maintains an Intellectual Property Management Plan (IP Plan) as part of their business management practices. The Board endorses the IP Plan and publishes it on their website. The IP Plan covers all copyright and neighbouring rights, and all rights in relation to inventions (including patents), plant varieties, registered and unregistered trademarks, registered designs, and Confidential Information (including trade secrets and know-how).

The RDC Board decides that owing to the changing world of trademarks and patents, they will review the IP plan every three years to ensure that they have appropriate management action in place.


Principle 5: Monitoring and Evaluation

Demonstrate positive outcomes and delivery of RD&E [and marketing] benefits to Levy Payers and the Australian community in general, and continuous improvement in governance and administrative efficiency.

Suitable mechanisms and processes in place that enable regular impartial reviews of performance, and identify improvement opportunities

Demonstrate that investments are striving to achieve meaningful RD&E outcomes and priorities

Communicate the results of the impact and benefits of RD&E activities and investments to stakeholders and the government.

Intent

This principle seeks RDCs to have appropriate procedures in place to demonstrate impact of investments, and to demonstrate commitment to continuous improvement based on the evaluation of activities. Not every R&D activity will produce results that lead to an increase in productivity or profitability, but research outcomes should be used to improve learnings and develop subsequent meaningful R&D activities and outcomes. As responsible stewards of levy payer funds, Government matching contributions and voluntary contributions, RDCs are accountable to levy payers and to the Australian public to demonstrate how they are striving towards positive outcomes and delivery of RD&E benefits [and marketing] for agriculture and society.

Review of performance

A yearly meeting between the RDC and department will provide an opportunity for each RDC to demonstrate and reflect on how they are addressing each of the performance principles. Throughout the life of the funding agreement, the department may request RDCs from time to time (but not less than every three years) to undertake an independent review to evaluate the RDC’s adoption and implementation of the principles.

The department’s request for a review will seek to evaluate the long-term implementation of all principles. It is expected that each RDC will have 1-3 reviews throughout the life of a 10 year agreement. Additional or more regular reviews may be requested in response to concerns or implementation of previous reviews.

Stakeholders should be kept informed of the RDC’s performance using avenues such as annual reports and financial statements, and two-way Levy Payer/stakeholder feedback.

In addition to the RDC’s demonstration of performance against the principles, it is also beneficial for RDCs to establish internal committees and reporting procedures (eg: audit committee, risk committee, monitoring and evaluation tools) to manage their own performance and communicate corrective actions.

Example: Annual meeting

An RDC schedules its Annual Performance Meeting with the department to provide an update on how it is tracking against the five performance principles. To provide evidence of performance against the RD&E Activities principle to the department, and assurance that funding has been used appropriately, an RDC might:

Demonstrate a balanced portfolio by showing they have considered their R&D priorities and identified projects that include a mix of activities that are short, medium and long-term projects, and include both low-risk and high-risk activities across their range of commodities for their industries.

Demonstrate that tools and systems are in place to manage projects, track progress, and provide data on project outcomes, productivity or uptake, including activities that do not produce a positive productivity outcome but produce learnings for future research activities.

Show where projects or activities address industry needs, stakeholder expectations and government priorities, and how they have collaborated to achieve outcomes.

Explain how and why certain project or future research activities are prioritised.

Monitoring and reporting


• Impact assessments, comparative studies or cost benefit analysis to demonstrate effective delivery of RD&E

• Analysis of benefits to industry and wider aspects (e.g. environmental, social, cross-sectoral).

• RDC systematically shares project and program evaluations and applies learnings to inform improvements.

• Does the RDC have processes in place to regularly review its own performance?

• Does the RDC implement changes when improvements/changes are identified or recommended?


Resources

• ASX Corporate Governance Principles and Recommendations (4th Ed): https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-fourth-edn.pdf

• ASX risk management framework (based on ISO 31000): https://www.iso.org/iso-31000-risk-management.html

• Australian Meat and Live-stock Industry Act 1997: https://www.legislation.gov.au/Details/C2017C00013

• Corporations Act 2001 (industry-owned RDCs): https://www.legislation.gov.au/Details/C2019C00216

• Dairy Produce Act 1986: https://www.legislation.gov.au/Details/C2017C00299

• Egg Industry Service Provision Act 2002: https://www.legislation.gov.au/Details/C2014C00020

• Forestry Marketing and Research and Development Services Act 2007: https://www.legislation.gov.au/Details/C2014C00038

• Horticulture Marketing and Research and Development Services Act 2000: https://www.legislation.gov.au/Details/C2016C00939

• National Primary Industries RD&E Framework: https://www.npirdef.org/

• Pig Industry Act 2001: https://www.legislation.gov.au/Details/C2014C00042

• Primary Industries Research and Development Act 1989: https://www.legislation.gov.au/Details/C2018C00358

• Public Governance, Performance and Accountability Act 2013: https://www.legislation.gov.au/Details/C2017C00269

• Rural Research, Development and Extension Priorities: http://www.agriculture.gov.au/ag-farm-food/innovation/priorities

• Sugar Research and Development Services Act 2013: https://www.legislation.gov.au/Details/C2014C00036

• Wine Australia Act 2013: https://www.legislation.gov.au/Details/C2019C00110

• Wool Services Privatisation Act 2000: https://www.legislation.gov.au/Details/C2016C00448

* Note: information in this document may be updated from time to time. This is a non-binding document with information and guidance to assist RDCs to address the five Performance Principles.

https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-fourth-edn.pdf

https://www.iso.org/iso-31000-risk-management.html

https://www.legislation.gov.au/Details/C2017C00013






https://www.npirdef.org/




http://www.agriculture.gov.au/ag-farm-food/innovation/priorities




Documents

DEED OF AGREEMENT 2020–2030€¦ · Hort Innovation’s Eligible R&D Expenditure; and (b) satisfactory substantiation that Hort Innovation has met all the requirements set out in