The Government announced yesterday that a senior BHP Billiton executive, Megan Clark, would take over as the CSIRO's chief executive from January, replacing the agency's outgoing chief executive, Geoff Garrett.

Dr Clark, who began her career as a mine geologist and has worked in venture capital, rejected suggestions the Government's budget funding cuts of $63 million over four years had damaged morale at the CSIRO.

"The Government has committed $2.1 billion to the CSIRO over the next three years and that absolutely demonstrates the importance and the role of the CSIRO in the national agenda," she said.

"The CSIRO has never been in a stronger position. It's been through change … all organisations need to have change.

"We need to build the CSIRO into one of the most respected national institutions and research institutions in the world."

Her claim that CSIRO has "never been in a stronger position" is despite $63 million of funding cuts over the next four years.

Earlier this year the agency announced plans to cut about 100 jobs and close two laboratories after funding cuts were included in this year's federal budget.

The affected sites include a horticultural research lab at Merbein, near Mildura, and a livestock research facility at Rockhampton.

Announcing the appointment, the Minister for Innovation, Industry, Science and Research, Kim Carr, said Dr Clark was one of the leading private-sector technology experts in Australia.

"Her vast leadership experience in the development and application of science and technology in a business environment will be an invaluable asset for the CSIRO and for the nation," Senator Carr said.

Dr Clark studied economic geology at the University of Western Australia and at postgraduate level in Canada before working for WMC Resources as a mine geologist and in minerals exploration, managing research and development, venture capital and technical strategy areas.

She was BHP Billiton's vice-president of technology from 2003 until earlier this year and has also been on the board of the Australian arm of the investment bank Rothschild.

CSIRO staff welcomed the appointment of Dr Clark, but stressed that one of the challenges she faced was to reverse the funding cuts.