MEDIA RELEASE

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Silicon Valley Visit a Step in the Right Direction

ACS says Venture Capital Investment Must Be Accompanied by Skills Development

Thursday 3 June 1999 - The Australian Computer Society (ACS) has welcomed news of this week's visit to Silicon Valley by an Australian venture capital industry trade mission, commending the Government on taking decisive action to attract investment for Australia's IT&T industries.

ACS President, Prins Ralston, said it was encouraging to see that Senator Alston would lead the mission and present a keynote address at the Investment 2000 event.

"In order to attract international venture capital to Australia, the Government must demonstrate its unqualified support for our IT&T industries," said Mr Ralston.

"It's good to see that Senator Alston recognises what is required by actively promoting Australian industry in America's technology heartland. We're also pleased to hear that moves are underway to address the critical Capital Gains Tax issue which is a major impediment to venture capital investment in Australia."

Mr Ralston encouraged the trade mission to learn as much as possible while in Silicon Valley about ways to stimulate growth in our IT&T industries, but cautioned against any assumption that venture capital alone would solve all our problems.

"New research in Silicon Valley by consulting firm AT Kearney has found that the IT skills shortage is costing high tech businesses there as much as US$3 billion per annum. With estimates of around 160,000 unfilled positions in the region, industry groups are focusing on ways to improve training and education programs at Silicon Valley schools and institutions.

"Clearly, if we want our IT&T industries to succeed in the global market, much more is required than just shoring up investment," Mr Ralston said.

"We also need to ensure we have sufficient skilled resources to do the work and conduct the research. In the long term, the investment dollars will go where the skills are because this is a knowledge-based industry.

"The Australian Government must demonstrate a similar level of commitment to producing skilled IT professionals as it is showing to the pursuit of international venture capital through this delegation to Silicon Valley," he said.

This media release is located on the ACS Web site.

ENDS

The Australian Computer Society is the recognised association for information technology (IT) professionals, attracting a large and active membership from all levels of the IT industry and providing a wide range of services to its members. It is the public voice of the IT profession, the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT. See the ACS Home Page for more information.

Media Enquiries:

Prins Ralston, ACS President, Tel: (0411) 755 069, Email: prins@bmconsult.com.au

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