Further cuts to fundamental research

1 August 2025

Tēnā koe Prime Minister,

The Royal Society Te Apārangi applauds the establishment of the New Zealand Institute for Advanced Technology as you announced on 18 July 2025.

However, we have been advised that the new Institute will be funded by reallocation of monies within the sector, including a further $15 million reduction to the Marsden Fund from 2028/29 in addition to the reductions already announced in this year’s budget. This will bring the baseline funding available from 2028/29 down to $55.8 million, amounting to a 29% cut over the 3 years from 2026/27. Given that the Marsden Fund is only 7.5% of the Government’s total investment in research and development, this represents a disproportionately large reduction.

The Society is very concerned that cuts to funding for the fundamental research supported by the Marsden Fund will undermine the long-term potential of the new Institute and other parts of the sector that apply early stage research, by significantly reducing the pipeline of knowledge at the new-discovery end of the process. This may have important unintended consequences for New Zealand in the long term.

The Marsden Fund was established to be the primary mechanism for government to invest in fundamental research for New Zealand. Over the past 30 years the Marsden Fund has supported New Zealand researchers to achieve some world-class breakthroughs and earn an international reputation for excellent science. The Fund invests in projects that are not likely to be funded by other mechanisms but that offer the possibility of paradigm-shifting discoveries that can solve challenges and create new industries, jobs, and high-value exports. We now risk significantly diminishing our ability to maintain and grow this innovation pipeline.

We urge you and your government to reconsider the planned further cuts to the Marsden Fund, and to reprioritise investment in fundamental research for economic growth and quality of life for New Zealanders into the future. We would welcome the opportunity to meet with you to discuss the evidence supporting this advice.

Ngā mihi, nā

Distinguished Professor Dame Jane Harding DNZM FRACP FRSNZ
President of the Royal Society Te Apārangi