MEDIA RELEASE

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ACS Demands Urgent Response to Goldsworthy Report

Yesterday Not Soon Enough, says IT Professional Body

Monday 25 August 1997 - The Australian Computer Society (ACS) has urged the Federal Government to act swiftly in adopting the recommendations of the Goldsworthy Report, released in Canberra yesterday.

ACS President, Tom Worthington, congratulated the Information Industries Taskforce (IIT) chaired by Professor Ashley Goldsworthy on its comprehensive IT policy blueprint, saying the importance of the IT industry to Australia’s economic future cannot be overstated.

"We are delighted to see the Goldsworthy Report has included several recommendations made in the ACS IIT Submission in January, including calls for a Cabinet-level IT Ministry, an Information Industries Council, IT investment incentives and greater coordination between federal, state and territory governments.

"Aside from the content, the industry stature of the group delivering this report demands an urgent and positive response from the Federal Government," he said.

In addition to the infrastructural considerations, the report also calls for a 200 per cent tax concession on R&D salaries, establishment of an Information Economy Development Fund to finance feasibility studies and the use of government outsourcing to help develop the industry.

ACS Vice-President Prins Ralston, who wrote the original ACS IIT Submission, has commended the Report’s focus on investment incentives and tax breaks for the IT industry, saying Government initiatives are essential to encourage development and growth.

"It’s all very well to say that Australia needs to be internationally competitive, but unless the Government establishes an appropriate business and regulatory environment that encourages investment in IT, we cannot hope to become a major force.

"Countries like Malaysia and Ireland are building strong IT industries on the back of Government funding, investment incentives and tax-free havens. Unless we harness similar, direct intervention strategies, we will lose a golden opportunity to establish ourselves both as leading suppliers and users of information technology."

Mr Ralston said the ACS had been calling for a Federal IT Ministry for the past two years and the Government was taking far too long to respond.

"Back in February last year in the lead-up to the Federal election, we highlighted the need for IT to be given a higher priority, both in terms of the political infrastructure and with regard to government policies relating to investment and R&D."

He also pointed to the recent groundswell of support from a broad cross-section of business and industry leaders who have each identified IT as an important focus for investment and development.

"The Mortimer Report into industry assistance is just one of several recent commentaries which called for Government intervention to support IT. While important in itself, the Goldsworthy Report assumes even greater significance in light of the current debate. The time for talk is now past and Australian industry is looking for action," he said.

In a reference to the reported internal wrangling within Government ranks over funding for IT investment and which Minister would win an IT portfolio, Ralston said nothing should be allowed to delay strong and decisive action in support of these latest recommendations.

"More than any other industry, IT has the potential to completely address Australia’s negative balance of payments and establish our nation as a major economic force in the region. The Government carefully must weigh the long-term and significant consequences of inaction compared with the short-time cost of implementing these strategic recommendations," he said.

This media release is located on the Web at: http://www.acs.org.au/news/goldwthy.htm

ENDS

Media Enquiries:

Tom Worthington, ACS President, Tel: (0419) 496 150, Email: tomw@acslink.net.au

Prins Ralston, ACS Vice-President, Tel: (0411) 755 069, Email: P_Ralston@ntu.edu.au

Caroline New, Caroline New PR, Tel: (02) 9980 8060 or (0411) 889 456, Email: cnew@acslink.net.au