ICT Industry Alliance Welcomes Innovation Action Plan
Friday 2 February 2001 - The Information and Communications Technologies (ICT) Industry Alliance, comprising the leading representative bodies in the information industry, welcomes the Federal Government's Innovation Action Plan, "Backing Australia's Ability".
The Alliance applauded the Prime Minister's leadership in recognising the importance of innovation for the Australian community and the pivotal role ICT plays in innovation and economic growth. The Alliance also welcomed the teamwork of Ministers Alston, Kemp and Minchin in bringing together a diverse range of complementary and integrated initiatives in the action plan.
The Alliance believes the plan addresses many of the key issues central to the development of an innovative and entrepreneurial culture in Australia.
Most welcome is the $129.5m for an ICT Centre of Excellence and the substantial expansion of the Cooperative Research Centre program. The additional funding for public sector research through ARC grants is also important. The Alliance will be working with Government to ensure these initiatives can be implemented as soon as possible and in a way that ensures the highest quality proposals are brought forward. The scale of the Centre of Excellence will increase the likelihood of its success in a competitive global market - a point which should be noted in other programs addressing issues such as advanced networking, where the Government is currently adopting a fragmented approach.
The funding for additional places at universities in ICT, maths and science is a good start in tackling the substantial skills shortage Australia faces in ICT. The improvements to immigration arrangements will also assist. The national innovation awareness strategy initiative will in the longer term lead to more high quality candidates seeking to acquire ICT-related skills.
The Alliance noted the proposed changes to the R&D tax concession. Cementing Australia's position in the new information economy requires a new and aggressive approach. The Alliance had hoped for a significant improvement in this vital area, but the overall picture is not yet clear. Initiatives such as the cash out provisions for SMEs seem attractive. However, other changes such as the premium rate scheme will need to be examined more closely. Of particular concern is the proposed change to the definition of R&D for the tax concession. The members of the Alliance will be consulting with their constituencies and with government to ensure these changes do not disadvantage the ICT industries.
The Alliance is pleased with the Government's renewed commitment to the START program and the increased funding for the COMET program. The provision of substantial funding for the commercialisation of public sector research is also pleasing.
The Alliance considers "Backing Australia's Ability" an important step forward for the Australian community. Implementation of the many initiatives will be a challenge and the continued leadership and collaboration of the Prime Minister and his senior Ministers will be critical to success.
As the Government recognises, there are other issues which also need attention. The Government's commitment to improve Employee Share Option Plans is welcome and the Alliance hopes this represents a comprehensive commitment to ensure we have a personal and corporate tax system which is globally competitive. The Government has also indicated the need to ensure more equitable and affordable online access. Generally available and affordable high-speed bandwidth must be a central plank of any initiative in this area.
The Alliance looks forward to working with the Government in the implementation of the Innovation Action Plan and the development of further initiatives to secure Australia's future.
The Members of the ICT Industry Alliance are:
Australian Electrical and Electronic Manufacturers' Association Ltd
Australian Information Industry Association
Australian Interactive Multimedia Industry Association
Australian Telecommunications User Group
Service Providers Industry Association
Software Engineering Australia
FURTHER INFORMATION:
Rod Galloway, Director, Asia Pacific Smart Card Forum - 0417 246 099
John Ridge, President, Australian Computer Society - 0407 913 992
Angus M Robinson, Executive Director, Australian Electrical and Electronic Manufacturers' Association Ltd - 0418 488 340
Rob Durie, Executive Director, Australian Information Industry Association - 0410 582 713
Lynne Spender, Executive Director, Australian Interactive Multimedia Industry Association - 0416 000 746
Allan Horsley, Managing Director, Australian Telecommunications User Group - 0411 113 342
Peter Coroneos, Executive Director, Internet Industry Association - 02 6232 6900
Tony Hill, Executive Director, Internet Society of Australia - 0412 128 755
Phil Singleton, Chairman, Service Providers Industry Association - 0414 466 870
Tony Benson, National Chairman, Software Engineering Australia - 0417 675 044
This media release is available on the ACS Web site at http://www.acs.org.au/news/02b0201.htm
ENDS