| ICT
TRADE DEFICIT RISES 15 PER CENT TO $19 BILLION
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| ACS calls for creation
of a new body to represent ICT interests Friday, 3 June 2005 - The ACS (Australian Computer Society) today called on the Government to pay urgent attention to the health of the Information and Communications Technology (ICT) sector in light of a study which shows Australia’s ICT trade deficit has risen dramatically.
In 2004, Australia’s ICT exports were worth $5.4 billion, while imports cost $24.4 billion creating an ICT trade deficit of $19 billion – an increase of 15 per cent over the $16.5 billion trade deficit for 2003.
Releasing the findings of the report (Australian ICT Trade Update 2005), ACS President Edward Mandla said that in the long term, Australia’s focus on simply being a user of other countries’ ICT rather than developing our own capabilities, will affect our ability to create competitive advantage. (Key findings below.)
“ICT is a high skills industry which makes a profound contribution to the national economic health. It’s a sector which underpins the performance and productivity of most core industries in Australia including the banking, automotive and agricultural industries,” said Mr Mandla.
“The ICT trade deficit figures provide a crucial barometer for the health of our industry. If we choose to ignore the figures and fail to develop a long term industry plan, Australia will miss out on the significant economic benefits that have been harnessed by our OECD peers.
“ICT imports underpin productivity gains, but our ability to realise the benefits of being an ICT user should not blind Australia to the significantly greater benefits of being an ICT producer. Countries that are large net producers of ICT goods and services have achieved strong productivity gains. General purpose technologies like ICT can form the basis of innovative clusters, spawning a process of continual innovation and contributing to local and regional development,” he said.
“We know that the rate of growth in Australia’s working-age population is slowing, and any further gains from reducing unemployment are limited. That means that, more than ever, Australia’s future economic growth will be driven by productivity growth. The ICT sector is a key enabler of Australia’s productivity performance. Local ICT capabilities and international competitiveness will affect the extent to which Australia can keep pace with its international competitors,” said Mr Mandla.
Since Australia’s ICT weakness is a tendency to small scale investment to only supply the local market, the ACS is calling for greater focus on attracting significant export oriented investments that link local producers with global production systems.
“It is essential that Australia now put into place policies and practices that allow us to exploit our areas of ICT advantage. Local industry must link into global ICT production systems and focus on attracting export oriented investment while supporting and boosting our local ICT capabilities,” he said.
“We will be seeking the establishment of a new body to provide a united voice on overall strategic issues for the ICT sector. We need to emulate the successful model established by the Tourism and Wine industries and work with the Government to establish an entity that can unify competing interests and create a genuine, long-term industry vision. The charter of such a body would include improving ICT employment and productivity, and identifying and promoting our competitive ICT advantages domestically and overseas.
Mr Mandla said such a body would complement the work of existing entities such as Austrade and Invest Australia.
”Both these bodies do a great job, but they are constrained in their efforts on behalf of our industry because we lack cohesion and a clear identity and vision. Austrade has exceptional programs, but without a 10-15 year industry plan and a guiding body, it just doesn’t have a pipeline of great innovative ICT companies to take overseas,” he said.
The ACS will present its recommendations and the findings of the Australian ICT Trade Update 2005 report to the Minister for Communications, Helen Coonan, and the Minister for Trade, Mark Vaile, in coming weeks. SUMMARY OF 2004 ICT TRADE FIGURES & FINDINGS
KEY IMPORT AND EXPORT TRENDS Exports of both ICT equipment and services continue to fall from their
peak during 2000 and 2001, with the exception of computer and information
services exports which have increased by around 9 per cent per annum.
Media information: Fleur Brown mobile: 0419 270 863 or fleur@launchgroup.com.au
The ACS (Australian Computer Society) is the recognised professional association for those working in Information and Communications Technology, seeking to raise the standing of ICT professionals and represent their views to government, industry and the community. A member of the Australian Council of Professions, the ACS is the guardian of professional ethics and standards in the ICT sector, committed to ensuring the beneficial use of ICT for all Australians. It provides both members and non-members with opportunities for professional education, networking and certification, as well as enabling them to contribute to the development of their profession. Visit www.acs.org.au for more information. Author of the Australian ICT Trade Update – Professor John Houghton
has, on behalf of the ACS, produced the Information Industries
and the ICT Trade Updates since 1997. Professor Houghton is a prolific
author and commentator on ICT. He is currently Professorial Fellow
at Victoria University's Centre for Strategic Economic Studies
(CSES)
and Director of the Centre's Information Technologies and the Information
Economy Program. He has significant experience in information technology
policy, science and technology policy and more general industry
policy related economic research. He is a regular consultant to the
OECD
in Paris |
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