A missed opportunity for economic growth & global competitiveness
Thursday, 5 February 2009 –The Australian Computer Society, Australia’s peak representative body for ICT professionals, has today called for Federal Government action in the form of support of the Digital Economy and ICT R&D in order to stimulate Australia’s economy and ensure our nation’s ongoing global competitiveness. The call was made in light of the exclusion of ICT related strategies in the Government’s Stimulus Package and wide acknowledgment that technology is a driver of productivity growth in Australia.
ACS Chairman, Kumar Parakala said that although the Government has acted swiftly to stabilise and stimulate the Australian economy in the short term, a package aimed at creating growth in the economy has failed to recognise the potential of the ICT industry, which can stimulate employment in all sectors of the economy. With adequate investment, the Government’s own figures estimates that the ICT industry will increase service industry growth by 35-65%1 due to technological factors, and between 45-75% in manufacturing industries.
“The Federal Government’s own research supports the importance of the ICT industry and the role it plays in developing our Digital Economy. Until the Government endorses its research with action, it cannot claim that it is doing all in its power to stave off the effects of the global financial crisis and its impact on Australians.
“Recent figures from Austrade2 indicate that only 3% of our SMEs export their goods and services, suggesting that, given the right incentives and stimulus, our participation in the global Digital Economy could significantly improve. It is not sufficient to boil ICT down to broadband and a strategy to provide a laptop per child. A Digital Economy strategy and re-investment in ICT R&D, ICT innovation and venture capitalist incentives are essential to stimulate our industry and economy”, said Mr Parakala.
Mr Parakala also commented that “the ACS has been foremost in welcoming these initiatives, however what is required is a whole of government approach and a focused strategy, followed by execution to get quick wins. We have seen a series of Government reviews; NBN, higher education, innovation, temporary migration, Gershon, Henry Inquiry into Australia’s Future Taxation System, the 2020 summit and consultation forums and workshops on the Digital Economy; which provide many of the fundamentals needed to drive our Digital Economy. We now need leadership and direction to focus on execution and tangible outcomes to reinvigorate our economy, and harness the power of the Digital Economy.
“The US, UK and other developed nations have already clearly defined Digital Economy blueprints and strategies. They’re well advanced in leveraging these blueprints and strategies to assist the recovery during this period of global financial difficulties. Australia needs to recognise the potential ICT presents as well as to provide the infrastructure and facilities we will need to support a new generation of children able to capitalise on digital offerings that will support Australia’s future growth.
“If the Government continues to fail to see the opportunities the Digital Economy has in revitalising Australian productivity, exports and growth, we risk falling further behind in the global Digital Economy”, said Mr Parakala.
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1 Department of Communications, Information Technology and the Arts, “Productivity growth in Australian manufacturing and Productivity growth in service industries”.
2 http://www.austrade.gov.au/Yes-Virginia-there-are-barriers-to-small-business-exporters/default.aspx
Media Contact:
Emily Venardos (02) 9270 0200 or mobile: 0413 743 737
About the ACS:
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.
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