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T H E R O YA L S O C I E T Y O F E D I N B U R G H

ANNUAL REVIEW 20012002

Working together in Realising Scotlands Excellence

The Royal Society of Edinburgh was founded in 1783. It is Scotlands national academy. Its Fellowship includes the best of Scotlands intellectual talent in academia, the professions and business. It facilitates public debate, research programmes, educational projects and strategy formulation. Its strength is its diversity and impartiality. The goal of the RSE is to make a signicant contribution to the cultural, social and economic prosperity of Scotland. The RSE has effected signicant developments in areas of strategic importance to Scotland through partnerships with major charitable trusts, industry, government and academia. The Societys unique multi-disciplinary approach enables it to draw from and link with a broad spectrum of expertise to advance the understanding of globally important issues.

Introduction f r o m R S E P r e s i d e n t, S i r W i l l i a m S t e wa rt

The Royal Society of Edinburgh has had a good year, building on the changes of recent times. In this the Jubilee year of our Patron, Her Majesty The Queen, we have been honoured by the Presence of HRH The Duke of Edinburgh, who has given of his time on two occasions presenting the Royal Medals for 2001 and by visiting the Society to launch our Fundraising Campaign, of which he is Patron. We were also honoured by the Presence of HRH The Princess Royal, as the Society celebrated Her Majesty The Queens Golden Jubilee. We were, however, much saddened by the death of Her Majesty Queen Elizabeth The Queen Mother, our joint Patron for over fty years. This Annual Review is a new publication which seeks to offer a synopsis of some of the highlights of the past year. The advantages of having a multidisciplinary Fellowship, and a Society which serves as an important national focus for debate on Scottish issues and for independent advice and comment, are becoming increasingly apparent. Coupled to that, the Society serves as a funding source and as a forum which is helping to develop Scotlands international links. All of this requires administrative and nancial underpinning. Against that backcloth: Firstly, there has been the production of a Corporate Plan, long overdue, on the role which the Society can and should play. The days of an ad hoc approach to such issues have gone and for this Sir Laurence Hunter, our Treasurer, and Professor John Laver, our Fellowship Convener, deserve much credit.

Second, the RSEs fundraising campaign, Realising Scotlands Excellence, has been set in place to generate funds to implement the Corporate Plan. We have already reached our initial target of 5 million. This funding is essential so that we can address new issues quickly, and I am grateful to the Fellowship and to major supporters such as the Gannochy Trust, the Lloyds TSB Foundation for Scotland and Scottish Enterprise, for their support. There is still much to be done. Third, under the leadership of Lord Wilson of Tillyorn, a former Governor of Hong Kong, our International Committee has gone from strength to strength. This is a change from the days before devolution when the Society was not recognised as having an international role. I am a globalist by nature and in the world of the 21st century, it is important that we do not become introverted and parochial. The World is changing and we want to promote Scotland and the Society internationally. Towards that end, International links have recently been established with scientic academies in China, Taiwan and Poland. Prior to becoming the Societys General Secretary in October 2001, Professor Andrew Miller did a great deal to advance our international portfolio.

RSE Annual Review

Introduction
Fourth, there has been recognition that the RSE is an important resource upon which both the Edinburgh and Westminster Parliaments can draw. As part of its new outward focus, the Societys newsletter has been enhanced so that it is informative not only to the Fellowship, but to the wider community with whom we now interact to a great extent. The Societys increased public prole will continue to be instrumental in positioning the RSE as it seeks to form key partnerships in Scotland, enabling us to work together for Scotlands wellbeing. Fifth, drawing upon the great pool of expertise from within our diverse Fellowship, the RSE continues to give asked for and unasked for advice. Under the Chairmanship of Professor Ian Cunningham, the Society conducted the only truly independent inquiry into Foot & Mouth Disease, as it affected Scotland. The report focused not only on the impact on the farming community, but on the rural community more generally, and has produced valuable recommendations which have been broadly welcomed by them and by Government. The Society also responded to concerns about how best to deal with a virus which could devastate one of Scotlands most important rural industries Salmon Farming. Under the Chairmanship of Professor Sir Roderick MacSween, a broadly based investigation into the science behind current legislation governing Infectious Salmon Anaemia (ISA) was carried out. It is important that all steps, consistent with good environmental practice, are taken to support the Scottish Salmon farming industry and the Broodstock industry, which is vital to its future. Under the Chairmanship of our Vice President, Lord Ross, a working party was also established to assess whether Mediation could be used as an effective alternative to Litigation in settling disputes between patients and health professionals. After wide consultation, the Committee recommended that Mediation should be more widely used. Sixth, the Scottish Science Advisory Committee (SSAC), an independent body of experts, Chaired by Professor Wilson Sibbett, and a key part of the Scottish Executives rst Science Strategy for Scotland, was established, under the auspices of the RSE.
The Societys Classics & Comedy Fundraising Dinner The Royal Museum, Edinburgh
Photo: Gary Doak

Seventh, an independent committee has been set up under the Chairmanship of Dr Chris Masters to offer advice on the administrative structure which must underpin a progressive Society. Eighth, we have had encouraging discussions with the Scottish Executive about additional funding for the Society. A supplement in its contribution to our core funding would be very welcome and much appreciated. Finally, I would like to thank the Fellowship, the Officers and the administrative Staff for their support over the past three years. I am delighted to pass the Presidency of The Royal Society of Edinburgh to Lord Sutherland of Houndwood, an outstanding academic and incisive thinker and manager. I have every condence that he will shape the Society in a way which will be to its benet and to that of Scotland.

Sir William Stewart, FRS, PRSE President

RSE Annual Review

The RSE a year of progress in Realising Scotlands Excellence

Independent Expert Inquiry into Foot & Mouth Disease

Set up at the behest of the President and Council, the RSEs independent inquiry into Foot & Mouth Disease produced 27 recommendations which have been passed to key decision makers. Under the Chairmanship of Professor Ian Cunningham, the remit of the forward-looking committee was to consider scientic aspects of the Foot & Mouth virus, the disease, options for its control and the impact of the spread of the virus on the social and economic life of Scotland. The groups Vice Chairman, Professor Gavin McCrone, headed the inquirys Economic and Social Impact Committee.

RSE Fundraising Campaign Realising Scotlands Excellence

HRH The Duke of Edinburgh HonFRSE launched the Societys fundraising campaign, of which he is Patron, in August 2001. The appeal seeks to provide the Society with the resources that will enable it to help contribute further to the social, cultural and economic wellbeing of Scotland. Major grants from Lloyds TSB Foundation for Scotland and Scottish Enterprise (SE) have helped us to reach our initial target of 5 million from that sector. 1.1million from Lloyds TSB Foundation for Scotland will fund new research into improving the quality of life of Scotlands ageing population. In March, Scottish Enterprise injected a further 5.5million into the highly successful SE/RSE Enterprise Fellowship programme. 80 new awards to commercialise research in Scotland are now available. The Gannochy Trust has just offered 500,000 to create major new awards for innovation in Scotland.

Lord Sutherland becomes new RSE President

The distinguished academic Lord Sutherland of Houndwood was made Presidentelect of the Society, following elections held at the RSE on Monday 4 March. Lord Sutherland, who has just retired as Principal and Vice Chancellor of The University of Edinburgh will formally take over as RSE President when Sir William Stewart demits office in October. This highly prestigious post has been held by other such distinguished gures as Sir James Hall, Sir Walter Scott, Thomas Stevenson and Lord Kelvin. The post is unpaid; the term lasts for up to 3 years. Prior to becoming Principal of The University of Edinburgh, Lord Sutherland was Vice-Chancellor of The University of London and is a former HM Chief Inspector of Schools in England. A member of the Board of the Higher Education Funding Council for England (HEFCE), Lord Sutherland also sits on the Governments Council for Science and Technology. He chaired the recent Royal Commission on the Long Term care of the Elderly, and last year, The House of Lords Appointments Commission named the then Sir Stewart Sutherland as one of 15 new independent life peers.

RSE Annual Review

Realising Scotlands Excellence

Royal Recognition of Outstanding Achievement

Awarded in recognition of intellectual endeavour which has had a profound inuence on peoples lives world-wide, the Royal medals were presented in July 2001 by HRH The Duke of Edinburgh and in October 2002 by HRH The Princess Royal. Professor Sir James Black, Professor Tom Devine and Professor Ian Scott received the Royal Medals from HRH The Duke of Edinburgh at a ceremony held in the Palace of Holyroodhouse. HRH The Princess Royal presented the eighteen carat gold medals to Professor Sir Alfred Cuschieri, Professor John Mallard, and Professor Sir Alan Peacock in the Signet Library. The Royal Medals were inaugurated by Her Majesty The Queen who presented them at the RSE in 2000 to Professor Peter Higgs, Professor Sir Kenneth Murray and Lord Perry of Walton.

RSE helps shape Science Policy in Scotland establishing SSAC

The Scottish Science Advisory Committee (SSAC), a key part of the Scottish Executives Science Strategy for Scotland, was created under the auspices of the RSE in May 2002. An independent group of eighteen experts, the SSAC was set up to inform policy and advise Scottish Executive Ministers on issues of scientic importance. Iain Gray MSP, making his rst official engagement as Minister for Science, met with SSAC Chairman Professor Wilson Sibbett and Committee members at the RSE for its inaugural meeting on May 7. The SSAC has a wide remit and has now established three working groups to develop and take forward its programme of activities. The working groups will focus on Mechanisms for Research Excellence; Science Education, from primary school through to higher education; and Science in Society issues.

RSE forges key Scientific Links with China

A memorandum of understanding between the Society and the Chinese Academy of Sciences was signed in March 2002 when the RSEs International Convener, Lord Wilson of Tillyorn, led a small delegation to Shanghai and Beijing. The agreement will promote and strengthen scientic co-operation and will facilitate exchange visits of scholars and researchers between Scotland and China. New links have also been established with Taiwan and Poland.

In a shifting environment, new thinking and new partnerships are needed to develop the social and economic frameworks that will allow Scotland to prosper.

RSE Annual Review

Mediation should be considered in resolving medical disputes

Aware of much public concern about how disputes between patients and health services in the UK have been handled, the RSE established a panel of top medical, legal and public health experts to examine the scope of mediation in the resolution of such instances in Scotland. Under the Chairmanship of Lord Ross, the independent committee consulted widely and published its ndings in February. The report advocates the use of mediation, stating that its advantages clearly outweigh the disadvantages. The report, Encouraging Resolution states that the advantages include: the process offering more exible and constructive solutions (e.g. an apology or explanation); reducing delay; reducing stress for all involved; helping maintain professional and personal relationships, and providing greater scope for patients and families to participate and express their feelings.

Christians, Muslims and Jews The Quest for Human Solidarity

HRH Prince El Hassan bin Talal of The Hashemite Kingdom of Jordan noted that we had all been affected by the events of September 11th, and suggested that they brought us to a cross-roads where we could choose to move together or move further apart. In order to move forward, Jews, Christians and Muslims, should, he asserted, insist in policy formation that humanitarian factors be placed at the forefront of all considerations. We must seek, the Prince claimed, a new kind of politics capable of ending humanitys war with itself and nature; a politics for people anthropolitics. Taking the Arab/Israeli conict as an example, Prince Hassan said that conicts are often characterised by the inability of either side to recognise the suffering of the other, and advocated the greater use of education exchange agreements such as the EU Socrates and Erasmus programmes.

ISA report
The RSEs independent working party, established to assess the science behind legislation governing the control of Infectious Salmon Anaemia (ISA) concluded its report in June. ISA is a viral disease which poses no threat to human health, but which is a blight to one of Scotlands most important industries. Chaired by Professor Sir Roderick MacSween, the independent committee produced a comprehensive report and makes key recommendations which seek to contribute to the future wellbeing of the salmon farming industry and animal welfare in Scotland. The salmon farming industry supports 6,500 jobs in Scotland, generates 600-700 million in retail sales and accounts for 40% of Scotland's food exports. The RSE's independent report calls for the provision of nancial compensation for slaughtering of sh to be re-examined. It also states that the current policy disadvantages Scotland's salmon broodstock industry, noting that when sites are cleared, serious loss of unique gene pool may occur and result in serious nancial damage to the broodstock industry.

Promoting Young Peoples interest in Science, Society & Culture

In June 2001 the President Chaired a joint BA/RSE conference in Glasgow on Mobile Phone safety for S5 students. Cloning was the topic discussed at The University of Stirling in when RSE Vice President Lord Ross was in the chair. At both events, the students heard expert lectures, debated in workshop groups and came to conclusions which have been sent to key UK decision makers. Other events were held from Eyemouth to Lewis. The Weekend Maths/Science Masterclasses and Science Summer Camp proved to be extremely popular. The 2001 Christmas Lecture was given by NASA Astronaut, Dr. Bonnie Dunbar, CorrFRSE.

RSE Annual Review

Realising Scotlands Excellence

Society strengthened by Election of new Fellows

Based on the advice of twenty one specialist discipline committees, over 60 outstanding individuals from a broad spectrum of disciplines were elected Fellows of the RSE in March 2002. New Honorary Fellows are: Gerald Gordon, Paul Nurse, JK Rowling and Philip Sharp. Recently elected Corresponding Fellows, who are resident outside the UK, are: Knud Haakonssen, Peter Hall, David Miller and Sydney Ross. Election to Fellowship of the Society honours outstanding achievement across all academic subjects, the professions, the arts, commerce, industry and public life. But conferring the accolade of Fellowship on people recognised as amongst the best minds in Scotland is the beginning, not the end, of the Societys purpose. The collective expertise and experience of the Fellowship is the underpinning foundation of all the other goals of the Society. A complete list of new Fellows is available at: www.royalsoced.org.uk

Contributing To The Future Of Europe Debate

In association with the Scottish Jean Monet Centre for European Excellence, the RSE hosted a seminar chaired by Bruce Millan to launch The Future of Europe Debate. Speakers included the then Minister for Europe, Jack McConnell and members of the European Parliament and European Commission. On October 28 the European Commissioner for Research, Philippe Busquin, will visit the RSE, ahead of making an announcement about the hugely important Framework 6 funding allocation.

A source of independent expert advice

Providing independent advice on matters of national and international importance to key bodies including the Scottish Executive and both the Scottish and Westminster Parliaments, the RSE has responded to nearly 40 requests for expert views. These have included topics such as the management of radioactive waste, the deliberate release of GMOs into the environment and a review of arts & humanities research funding. Our diverse, multidisciplinary Fellowship, offers a key knowledge resource in today's Scotland.

A Platform for Public Debate & Specialist Discussion

The Societys events programme has become even more varied. Topics have included the ethics of stem cells & cloning, traffic congestion, space exploration, the regeneration of the Forth & Clyde Canals, the epidemics of infectious diseases in live stock, human rights, and food safety. Top quality lectures, conferences, symposia, workshops and debates throughout Scotland, have seen a marked upturn in attendance. The Society continues to offer members of the public a forum for informed debate on matters of national and international importance, as well as hosting events for subject specialists and professional bodies. Increasingly, the Media reects the relevance of the Societys programme which represents a knowledge resource for Scotland. Reports of past events and details of forthcoming ones are available on the RSE website.

RSE Annual Review

Forging Links with Industry

The Society has continued to strengthen its links with Scotland's business community and is ideally placed to help act as a bridge between industry and academia. High-prole Foresight seminars were held, in association with the Scottish Executive and SHEFC, on the topic of Technology in November 2001 at the RSE, and on Transport Technologies & Logistics in Glasgow in February 2002. Over 300 people attended a highly successful conference in Glasgow entitled Innovation in Scotland in the 21st Century Matching Knowledge & Enterprise. This event was organised by the RSE on behalf of SHEFC, Scottish Enterprise and The Scottish Executive. In June a half-day conference was held at the Society on Managing Intellectual Property in Scottish Higher Education. Supported by Scottish Enterprise, SHEFC and Universities Scotland, this event was also very well attended.

RSE/SE Enterprise Fellowships Huge Boost for Creation of Business in Scotland

In March, Scottish Enterprise (SE) announced a 5.5 million boost for the highly successful RSE/SE Enterprise Fellowship programme. The funding will enable the Society to offer 80 new Enterprise Fellowships and expand the programme to offer Fellowships in Software/E-commerce/M-commerce, Forest Industries, Food, Tourism, Electronics, and Creative Industries. The current areas of Biotechnology, Optoelectronics, Microelectronics and Communications Technologies will continue to be funded. An independent review by SQW found that the Enterprise Fellowships have already helped to create over 7 new companies and over 400 highly skilled new jobs in Scotland.

With its multidisciplinary Fellowship, the Society is ideally placed to offer

A Bridge between Parliaments
In October, a delegation of the European Parliaments Temporary Committee on Human Genetics, comprising Mr John Purvis, CBE, Mrs Astrid Thors, and members of the committee secretariat, visited the Society, where they met with Fellows, Members of the Scottish Parliament and representatives from the Scottish biotech industry. The remit of the committee has been to report on potential developments in human genetics and on their uses, taking social, ethical and legal concerns into consideration. With its multidisciplinary Fellowship, the Society is ideally placed to offer independent, expert views on issues of this breadth and importance. The Society also hosted a number of visits from the Westminster Parliament, including that of the Commons Science and Technology Committee. Chaired by Dr Ian Gibson, the Committee visited the Society in April to discuss its inquiry into Science Education 14 19. The RSE invited members of the Scottish Executive to participate in this meeting, providing a useful opportunity for joined up thinking.

independent, expert views on issues of breadth and importance.

RSE Annual Review

Financial Report

The Society emerged from a difficult period in the nancial year 2001 2002 with a disappointing operating decit of 115,000. (See tables and charts for summary gures.) The main cause was the loss of 155,000 rental income from the Foundations tenant, Houseworks, and the consequential waiver of 85,000 interest due from the Foundation to the Society. This in turn impacted on the Societys General Fund, which bears the residual cost of management, publicity and fund-raising. This outcome was particularly unfortunate in a year when the Society, in pursuit of its Corporate Plan goals, embarked on raising its public prole and enhancing its activities programmes. This effort, plus the associated fund-raising cost, was always likely to increase expenditure faster than income in the short term, as indeed transpired. Expenditure rose by 10% compared with an increase in income of 9.7%. The balance sheet shows assets of just over 7 million. However, this is largely locked up either in property or in the form of funds held in trust to carry out donors expressed wishes. There is virtually no free reserve remaining. In the current nancial year (2002 03), improvements are expected from the renewed ow of rent from our new tenant, Lakeland Ltd, though this commences only in the second half of the year. The initial phase of fund-raising has been successful and the benets will be spread over future years: Fellows contributions have been placed in a designated fund to ensure they are used for the intended purposes. It is important now that the Society stabilises its nances, and the newly established Treasurers Committee is taking steps to tighten and rene the forward budgeting process, to review risk management procedures, and to ensure that plans and initiatives are properly funded in advance of implementation. The aim for 2003 2004 is to progress towards an achievable balanced budget, and make a start to the re-building of reserves. In some measure this will depend on the success of the second (corporate) phase of fund-raising. There are grounds for believing, however, that the increased prole and activity level of the Society can be sustained in the longer term, consistent with our nancial objectives.

Sir Laurence Hunter CBE Treasurer

RSE Annual Review

Financial Review
Income
Research Awards Scottish Executive 20% Research Awards Scottish Enterprise 11% Research Awards charitable trusts Science Promotion & Advice Scottish Executive grant for activities Scottish Science Advisory Committee Own Income Appeal Receipts 20% 11% 17% 3% 13% 5%

Expenditure
Research Awards Prizes and grants Science Promotion & Advice Scottish Science Advisory Committee Fellowhip Office 51% 2% 25% 3% 2%

Buildings, management & administration 12% Cost of generating funds 5%

Income for year ended 31 March 2002 Promotion of research Research awards Scottish Executive Research awards Scottish Enterprise Research awards charitable trusts 385 217 401

000

Expenditure for year ended 31 March 2002 Cost of generating funds 20% 11% 20% Promotion of research Research awards Prizes and grants Science promotion and advice Publications Meetings Educational activities Academic / industry links International activities Evidence, advice and comment

000 109 5%

1003 Science promotion and advice Meetings Education Academic/industry links International activities
(including secondment of staff from Scottish Executive)

1,060 37

51% 2%

113 28 33 45 219 328 56 11% 17% 3%

38 225 57 49 51 97 517 25% 2% 3% 12%

Scottish Executive grant for activities

(mainly allocated to science promotion and advice)

Scottish Science Advisory Committee Own Income Fellows subscriptions Other donations Interest and dividends Appeal Receipts Total income

Fellowship Office Scottish Science Advisory Committee Buildings, management and administration Total expenditure

50 59 241

105 48 108 261 91 13% 5%

2,073 100%

1,958 100%

Balance Sheet 31 March 2002

Tangible Fixed Assets Fixed Asset Investments Loan to RSE Scotland Foundation

000
2,588 2,261 2,125 6,974

The gures above have been extracted from the audited accounts for the period ended 31 March 2002 which carry an unqualied audit report. The full Trustees report and audited accounts are obtainable in hard copy from 22 26 George Street, Edinburgh EH2 2PQ or on the RSE website www.royalsoced.org.uk

Current Assets Current Liabilities Net Assets Represented by: General Funds Designated Funds Restricted Funds

430 (171) 7,233

74 5,789 1,370 7,233

Royal Society of E dinburgh

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