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Working togetherin Realising

Scotlands Excellence

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

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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 significant contribution

to the cultural, social and economic prosperity of Scotland.

The RSE has effected significant 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.

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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 fifty years.

ThisAnnual Reviewis 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 financial 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, RealisingScotlands 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 ofTillyorn, 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 scientific 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.

I n t r o d u c t i o n

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 w a rt

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I n t r o d u c t i o n

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 profile

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 foradvice. 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 first Science Strategy for Scotland,

was established, under the auspices of the RSE.

Seventh, an independent committee has been set upunder 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 theirsupport 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 confidence that he

will shape the Society in a way which will be to

its benefit and to that of Scotland.

Sir William Stewart, FRS, PRSE

President

The Societys Classics & Comedy Fundraising Dinner The Royal Museum, Edinburgh Photo: Gary Doak

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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 scientific 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 andeconomic 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 President-

elect 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 figures 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 Commissionon 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.

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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

findings 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 flexible 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 conflict

as an example, Prince Hassan said that conflicts 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.

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.

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 financial compensation for slaughtering of fish 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 financial damage to the

broodstock industry.

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Society strengthened by Election of new FellowsBased 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 professionalbodies. Increasingly, the Media reflects 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.

Re a l i s i n g S co t la n d s E x c e l l e n c e

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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-profile 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

independent, expert views

on issues of breadth

and importance.

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 CommonsScience 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.

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F i n a n c i a l R e p o r t

The Society emerged from a difficult period in the financial year 2001 2002 with a disappointing

operating deficit of 115,000. (See tables and charts for summary figures.) 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 profile 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 financial year (2002 03), improvements are expected from the renewed flow

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 benefits 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 finances, and the newly

established Treasurers Committee is taking steps to tighten and refine 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 profile and activity level of the Society

can be sustained in the longer term, consistent with our financial objectives.

Sir Laurence Hunter CBE

Treasurer

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F i n a n c i a l R e v i e w

Income for year ended 31 March 2002 000

Promotion of research

Research awards Scottish Executive 385 20%

Research awards Scottish Enterprise 217 11%

Research awards charitable trusts 401 20%

1003

Science promotion and advice

Meetings 113

Education 28

Academic/industry links 33

International activities 45(including secondment of staff from Scottish Executive)

219 11%

Scottish Executive grant for activities 328 17%(mainly allocated to science promotion and advice)

Scottish Science Advisory Committee 56 3%

Own Income

Fellows subscriptions 105

Other donations 48

Interest and dividends 108

261 13%

Appeal Receipts 91 5%

Total income 1,958 100%

IncomeResearch Awards Scottish Executive 20%

Research Awards Scottish Enterprise 11%

Research Awards charitable trusts 20%

Science Promotion & Advice 11%

Scottish Executive grant for activities 17%

Scottish Science Advisory Committee 3%

Own Income 13%

Appeal Receipts 5%

Expenditure for year ended 31 March 2002 000

Cost of generating funds 109 5%

Promotion of research

Research awards 1,060 51%

Prizes and grants 37 2%

Science promotion and advice

Publications 38

Meetings 225

Educational activities 57

Academic / industry links 49

International activities 51

Evidence, advice and comment 97

517 25%

Fellowship Office 50 2%

Scottish Science Advisory Committee 59 3%

Buildings, management

and administration 241 12%

Total expenditure 2,073 100%

ExpenditureResearch Awards 51%

Prizes and grants 2%

Science Promotion & Advice 25%

Scottish Science Advisory Committee 3%

Fellowhip Office 2%

Buildings, management & administration 12%

Cost of generating funds 5%

Balance Sheet 31 March 2002 000

Tangible Fixed Assets 2,588

Fixed Asset Investments 2,261

Loan to RSE Scotland Foundation 2,125

6,974

Current Assets 430

Current Liabilities (171)

Net Assets 7,233

Represented by:

General Funds 74Designated Funds 5,789

Restricted Funds 1,370

7,233

The figures above have been extracted

from the audited accounts for the period

ended 31 March 2002 which carry an

unqualified 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

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Royal SocietyofEdinburgh

TheTHE ROYAL SOCIETY OF EDINBURGH

22 26 George Street, Edinburgh EH2 2PQ

T: 0131 240 5000

F: 0131 240 5024

E: rse@royalsoced.org.uk

W: www.royalsoced.org.uk

Scottish Charity no. SC000470

Copyright 2002 Royal Society of Edinburgh

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