Select Committee on Science and Technology Third Report


THIRD REPORT


The Science and Technology Committee has agreed to the following Report:

THE WORK OF THE MEDICAL RESEARCH COUNCIL

INTRODUCTION

1. Our Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Office of Science and Technology (OST) and its associated public bodies.[1] These associated public bodies are not clearly defined; the Non-Departmental Public Bodies associated with the OST are, strictly, sponsored by its parent Department, the Department of Trade and Industry (DTI) rather than by OST itself. We have taken the term to cover the seven Research Councils and the Council for Science and Technology, and (in part) the Human Genetics Commission and the Agriculture and Environment Biotechnology Commission.[2]

2. As part of our scrutiny of the Research Councils, we are holding a rolling programme of scrutiny sessions with individual Research Councils, with the objective of calling in all the Research Councils over the course of the Parliament. In December 2002 we published our first Research Council scrutiny report on the Work of the Particle Physics and Astronomy Research Council (PPARC).[3] We decided that the next Research Council to receive our attention should be the Medical Research Council (MRC) and announced this on 15 September 2002, highlighting the UK Stem Cell Bank and the UK Biobank as particular areas of concern and inviting submissions from interested parties. A distinct section on the Biobank appears at the end of the report. We held an oral evidence session on 4 December 2002 with the Chief Executive, Professor Sir George Radda, and the Director of Corporate Affairs, Mrs Jane Lee.

3. We have received 15 memoranda from various parties relating to our scrutiny of the MRC. In addition the Committee and the Chairman have received confidential correspondence from a number of MRC-funded researchers wishing to make their views known, but who have been unwilling to jeopardise further funding by submitting formal evidence to the inquiry. These views have been taken into account, as appropriate.

ORIGINS AND OBJECTIVES

4. The MRC is the oldest UK Research Council, established in 1913, and is based in central London. It is the principal public sector funder of basic and applied research relevant to medicine. Its mission is to:


INCOME AND EXPENDITURE

5. The MRC's expenditure on research was £400 million in 2001­02, making it the largest public funder of biomedical research. (The Wellcome Trust, a private charity is larger, with research support reaching £482 million in 2001-02[4]). As well as its Parliamentary grant-in-aid, the MRC has income from other sources, principally from other Government Departments, from a private fund (built up from private donations) and from its commercial fund, which is the income from exploitation of its intellectual property.

Table 1: MRC income between 1997-98 and 2001-02 (£million).


1997-98

1998-99

1999-00

2000-01

2001-02

Parliamentary grant in aid

289.1

294.0

304.6

319.7

345.3

Other income

Government departments

9.4

10.1

11.4

11.6

16.7

Joint Infrastructure Fund

-

-

-

1.5

10.2

Other UK public sector[5]

2.4

2.7

1.4

2.4

2.0

Charities

3.3

3.4

3.4

4.0

4.4

Industry

4.4

3.7

1.6

1.7

2.1

International and overseas bodies

4.3

5.0

7.6

8.2

8.9

Commercial fund

1.6

2.9

7.5

18.0

11.7

Transfers from Private Fund

-

-

1.7

 -

4.0

Miscellaneous

9.1

6.4

11.7

15.8

10.9

Total income

323.6

328.2

350.9

382.9

416.2

Table 2: MRC expenditure between 1997-98 and 2001-02 (£million).


1997-98

1998-99

1999-00

2000-01

2001-02

Institutes and staff

152.2

155.8

180.7

190.4

195.3

Universities and other institutions

155.8

147.8

151.7

157.3

184.2

National resources[6]

-

-

-

2.2

11.7

Administrative costs

12.8

12.3

12.7

12.8

13.6

Commercial exploitation

-

-

-

4.9

8.1

Total

320.8

315.9

345.1

367.7

412.9

Underspend and contingencies

6. In the MRC's operating plan, the financial summary includes a budgeted underspend (£3.2 million in 2002-03).[7] Professor Radda told us that this was to cover, for example, an unexpected "mishap in one of the grantholders' laboratory", yet the MRC has a separate £2 million contingency fund.[8] In its supplementary evidence, the MRC explained that the contingency fund is intended for the "mishaps" referred to by Professor Radda or "other essential expenditure which cannot be met from budgets" but that the planned underspend was still necessary.[9] In our report on the work of PPARC, we recommended that "a mechanism be developed outwith the standard rules on carry forward of voted expenditure to allow Research Councils to put money aside for specified future uses".[10] Research Councils should be able to use their funds flexibly but we would not support the use of this flexibility to starve current research projects of funds.


1   House of Commons Standing Order No. 152. Back

2   The Human Genetics Commission is jointly sponsored by OST and the Department of Health. The Agriculture and Biotechnology Commission is jointly sponsored by OST and the Department of the Environment, Food and Rural Affairs. Back

3   First Report of the Science and Technology Committee, Session 2002-03, The Work of the Particle Physics and Astronomy Research Council, HC161 Back

4   The Wellcome Trust, Annual Report and Financial Statements 2002, pp 13-14. The figure of £482 million is comprised of £412 million in grants and £70 million on direct activities. Back

5   Including Research Councils and NHS Trusts Back

6   Activities which make resources available to the whole community, e.g. the UK Biobank project, MRC Geneservice and the Human Nutrition Resource Centre (separately identified from other activities from 2000-01 onwards). Back

7   MRC Operating plan 2002/03 and 2003/04, p.5 Back

8   Q 9 Back

9   Ev 64 Back

10   First Report of the Science and Technology Committee, Session 2002­03, The Work of the Particle Physics and Astronomy Research Council, HC161, para 26 Back


 
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