Last week Obo posted a description of how he would sort out government spending, and
rather excellent it was too.Because all things must rotate around me, I asked:
I haven't heard the consensus on publicly funded science research like at my place or Cern.
What say you Obo?
And he (not unreasonably) answered:
@saltedslug: Hm. That's a very tough one. On the one hand, my natural reaction to that kind of thing is that I don't hand out subsidies. On the other, it is remotely possible that it might deliver some sort of breakthrough.
I think that there would be a huge takeup in the slack of state-sponsored research by commercial companies again in a libertarian Britain. Something as dear as CERN could probably not be unilaterally funded by the UK anyway.
So I guess I'd be inclined to stick with the "no subsidies" line. Large companies have historically had the resources to do a lot of this kind of thing, hopefully being freed of some much burdensome regulation and tax would encourage them to do research for competitive purposes.
Right, here's the thing. I work on the ISIS Neutron Spallation source at Rutherford Appleton Laboratories. RAL is run by the Science and Technology Facilities Council(STFC) which is one of the research councils funded by the Department for Innovation, Universities and Skills. We're not subsidised, we are
totally paid for by the taxpayer. The Guardian produced a useful chart of government expenditure a while ago:

And here's the relevant bit close up:

And here are some annotations to illustrate just how I'm sucking the public teat:

(incidentally the £150m was the build cost for ISIS TS2. The annual running cost is probably closer to £3m).
Now we've established I'm a parasite, but the question is: Can we privatise the lab in the manner which Obo is alluding to above? Well, yes you can privatise anything, but will it provide the same service? Probably not. You see this facility and the others like it (the most overt global example being Cern) don't do commercial research, they do
speculative research. That is to say, 'pure' science. We work by providing a facility to academia; PhD types come here to do research (for 'free') and go away and write papers about it. That is how we gauge our progress and productivity, not by selling a product or service, but by the number of peer-reviewed academic papers generated by research at our facilities per year.
With regard to privatising institutions like ours, I've mentioned the fate of Bell labs
before:
See Lucent-Alcatel's shameful shutdown of pure science at Bell labs in order to concentrate on more marketable research. It's understandable, but short sighted bearing in mind that Bell labs pretty much invented data networking, the transistor, solar cells, mobile phone technology, lasers, comms satellites, DSP, Unix and C.
So, can we have a privately owned lab which serves the same function as the publicly funded ones we have now? In the UK with the current situation, I would say no. UK universities are mainly publicly funded, with additional money coming from a variety of sources mainly in the form of research grants. But your average red-brick uni has a lot less cash than your equivalent US Ivy League college, because they are private institutions who have much greater control over their income.
So if we wanted to privatise the likes of the STFC facilities, we'd have to privatise the universities first. That way they would have a lot more control of their own income and lease the labs' facilities from the company/concern running the place. And the lab would do a fair bit more commercial work to take the rest of the slack up (we do some occasional work in between the theoretical stuff analysing wings for Airbus and testing detergents for Unilever). Would this work? Buggered if I know. Like any other kind of engineering, it's all about the trade-offs.
The public sector needs paring down to it's bare bones, and we should be no different. It's just that it's going to require a bit of a paradigm shift across the board if we wish to privatise everything and keep up with the other developed countries in these fields.
God knows we need all the innovation we can get right now.