But the decision to axe Callaghan Innovation ripples

Vineeta Rao
Auckland, January 24, 2025
Prime Minister Christopher Luxon announced two key initiatives to boost economic growth during his State of the Nation address at the Auckland Business Chamber on Thursday (January 23).
Invest New Zealand has been instituted to focus on attracting foreign investment.
In his speech, Mr Luxon said that although the government had made significant changes to the Overseas Investment Act, more action was required than just easing legal barriers.
“The objective is to increase capital investment across a range of critical sectors like banking and fintech, key infrastructure like transport and energy, manufacturing, and innovation,” he said.
Attracting Investment
Mr Luxon said that the aim is to double the value of New Zealand’s exports over the next years.
Invest New Zealand is mandated to attract international capital, infrastructure investment and expertise. The new agency, modelled on Irish and Singaporean best practices, will initially incubate within New Zealand Trade and Enterprise (NZTE) and eventually transition to a new Autonomous Crown Entity.
Trade Minister Todd McClay, whose Ministry is now called Trade and Investment (following Mr Luxon’s Cabinet Reshuffle on January 19), said that the initiative will help unlock tens of billions of dollars in global investment opportunities.
“This will significantly increase the capital available to support key roading and energy infrastructure and make New Zealand a more attractive and predictable destination for investors,” he said.
Public Research bodies merge
Attorney General and Digitalising Minister Judith Collins, who appeared at the State of the Nation Address with Mr Luxon announced a major reform of the Crown Research Institutes under ‘The Largest Reset Programme,’ with these organisations consolidated in four new Public Research Organisations (PROs), grouped by areas of focus.
“Each is expected to have a sharp focus on commercialisation, harnessing Kiwi talents for maximum economic impact – higher incomes, more investment and more opportunities to get ahead,” she said.
Dr Shane Reti, who has been appointed Science, Technology and Innovation Minister, will oversee the restructuring and operations of the new Organisations.
Earth Sciences will see The National Institute of Water and Atmospheric Research (NIWA) and the Institute of Geological and Nuclear Sciences Limited (GNS) merged. AgResearch, Landcare Research (Manaaki Whenua), Plant & Food Research and Scion will also be combined to create the Bioeconomy PRO. ESR will be repurposed to form Health & Forensic Science.
A new PRO will be established to focus on advanced technology.
Callaghan Innovation would be disestablished and its functions moved to other entities.
These changes come after consideration of the long-awaited Science System Advisory Group’s (SSAG) first report by Sir Peter Gluckman.
Mr Luxon said that an Advanced Technology Institute will focus on the commercialisation of cutting-edge technology like AI, quantum computing, and synthetic biology.

PSA on job losses
Fleur Fitzsimons, Acting National Secretary for the Public Service Association, New Zealand’s largest trade union, slammed the government’s move to dismantle the Callaghan Innovation CRI, saying that it would lead to job losses.
“The long overdue science reform strategy promises another huge restructure on top of the restructure endured by science agencies to date, creating more uncertainty and worry for thousands of Science workers. Our heart goes out to the staff at Callaghan Innovation who have already endured a long restructuring and now face an uncertain future with the agency to be scrapped entirely. Their work is valued and important no matter what the Government says,” she said.
Ms Fitzsimons said that it was ironic that just over a decade ago, it was a National-led government that launched Callaghan Innovation, with the then Prime Minister John Key praising the late Sir Paul Callaghan for his belief that ‘Science could make New Zealand a better place.’
“Just last year, the government rushed to axe the jobs of about 500 Scientists and researchers across various agencies, many of whom have been forced to uproot their lives and go offshore where their skills are valued. Now it wants to deliver this latest reform quickly; it is just a recipe for chaos and uncertainty,” she said.
Commercialising Science
The emphasis on the commercialisation of science by the current government has raised some concerns within the scientific community. This comes on the heels of the government’s announcement in August last year that half of New Zealand’s sole fund for fundamental science, the Marsden Fund, will now go to research with economic benefits, leaving social sciences and the humanities out in the cold.
In November 2023, the government allocated $75.82 million to support 113 projects. The Fund is administered by the Royal Society Te Apārangi and overseen by a Marsden Fund Council appointed by the Minister of Science, Innovation and Technology.
The announcement saw mixed reactions from the scientific community with several prominent scientists horrified at the cuts on Humanities and Social Sciences.
Vineeta Rao is an Indian Newslink Reporter based in Auckland.