Press Release - Big science: Public investment in large
scientific facilities
24 January 2007
The Government’s investment in large scientific facilities is
starting to deliver a significant programme including such projects
as the research ship RRS James Cook and the Diamond Synchrotron
light source, according to an NAO report published today. Some
project teams, however, have significantly underestimated the
likely running costs of facilities and more attention needs to be
given to assessing at an early stage the range of benefits which
these facilities should yield.
The Department of Trade and Industry through the Research
Councils invests in large scientific facilities to support and
develop the nation’s scientific base. Currently, £830 million has
been earmarked from a central fund to 15 projects which are
expected to cost the UK taxpayer some £1.2 billion to build. (Ten
of these projects have now been approved, one of which has been
delivered, with the others due for completion in the period to
2011.) The report says that the process of drawing up a "road map"
has allowed projects to be prioritised across the science base and
has been commended by other countries.
The report says it is too early to assess the value for money of
the science facilities. To date performance against capital budgets
suggests some good budget management, for example on the James Cook
research ship, the first of the projects to be delivered. The
report provides latest figures showing that, across the ten
projects underway, some of which are at an early stage, total
capital expenditure is forecast to exceed approved budgets by 6 per
cent. The report also shows some projects are forecasting delivery
dates some 12 months or more later than approved.
The forecast operating costs of some projects have increased by
large amounts compared to estimates when their business cases were
approved, with increases of over 80 per cent for the first phases
of the Diamond Synchrotron and for the ISIS second target station.
The report says that Research Councils need to do more work to
estimate the likely ongoing costs of new facilities.
At the point at which projects are first prioritised for
funding, costs and benefits are provisional. At the subsequent
business case stage, where costs or benefits – including industrial
and economic - differ significantly from those anticipated
initially, the report says that the priority of the project should
be reviewed.
The report says ultimately the value of the facilities will
depend on the scientific discoveries they make. It also says that
more work is needed by Research Councils to examine the potential
impact of new facilities on the future demand for research funding.
Full use of these facilities will depend on research ideas
competing successfully for research funding, through peer review,
against other calls on limited Research Council budgets.
Sir John Bourn, head of the NAO, said
today:
“The introduction of a shared plan covering all the
Research Councils is beginning to deliver new large facilities
which will be available to scientists from across the research
base. Improvements are needed however, if the benefit of the
current planned £1.2 billion investment in scientific facilities is
to be maximised. Before a project is approved, the range of
scientific, industrial and economic benefits should be consistently
specified.
“The full financial impact of a facility also needs to
be better understood to make sure that only those projects which
are sustainable in the long term are selected. More consistent
application of Government-wide project review procedures and
greater sharing of procurement practices would help teams to
deliver timely and economical projects.”
Notes for Editors:
- Figure 7 of the report compares the latest forecast capital
cost of each project with the capital budget at approval. Figure 8
compares the latest estimate of annual operating costs of each
project to the estimate in the approved business case. Figure 9
shows progress against planned delivery dates.
- The Department of Trade and Industry’s Office of Science and
Innovation is the lead body responsible for UK science policy. The
Office and the eight Research Councils aim to strengthen the UK’s
science base, and maximise its contribution to UK economic
development. The Research Councils are the main public investors in
civil research in the UK. Each Research Council is responsible for
deciding the research priorities within their particular field, in
line with overall policy set by the Office of Science and
Innovation.
- The central fund (the Large Facilities Capital Fund) was
introduced in 2002-03 to help fund projects judged to be of
sufficient priority. By 2003-04, the total funds available to large
facilities amounted to around £100 million per annum and
funding has continued at this level. The National Audit Office
reviewed the evolution, status and plans of all ten projects
prioritised for support prior to 2006. These were the:
- Diamond Synchrotron light source;
- Second Target Station for the ISIS pulsed neutron source;
- Research ship James Cook;
- Energy Recovery Linac Prototype for a fourth generation light
source;
- HECToR high end computing service;
- new laboratory for the Institute for Animal Health;
- Muon Ionisation Cooling Experiment;
- Halley VI Antarctic research station;
- new premises for the Laboratory of Molecular Biology;
- Research Complex for visiting users of facilities at the
Harwell Science and Innovation Campus including the Diamond
Synchrotron.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 05/06
All enquiries to Neil Gadhok, NAO Press Office:
Tel: 020 7798 7020
Mobile: 07796 940 746