“In announcing an ID Project Register, Ministers Fahey and Alston have joined Treasurer Costello in totally missing the point with respect to IT industry development policies,” Senator Lundy said today.
The ID Project Register allows companies to register industry development projects that can then be offered up as sweeteners in the Coalition’s IT outsourcing contracts.
“Typically, this initiative helps smooth the path for the big companies at the expense of Australian IT companies who battle continuously for a slice of the Government IT contracts pie”, Senator Lundy said.
This announcement confirms that the Coalition is implementing policies to encourage the use of IT goods and services produced elsewhere. This is consistent with statements recently made by Treasurer Peter Costello that Australia was better off being a good consumer of IT, rather than a producer.
“This is lazy and negligent policy.
“To squander genuine opportunities to create an environment and opportunities for the growth of the indigenous Australian IT industries defies good economic and social policy.
The Goldsworthy Report, commissioned back in 1997 by the Coalition gave a clear warning that there was a dire trade imbalance growing in the IT&T sector. Goldsworthy predicted the trade deficit would blow out from $6b in 1999 to $46b in 2005. This warning was ignored and the Government has done little of substance to support the dynamic and innovative indigenous IT sector.
The ID Project Register has the potential to allow multinationals to ‘double dip’ by claiming recognition for projects initiated anytime, as they bid for the lucrative government IT outsourcing contracts. Being a confidential register, no-one will know what the Government is assessing as they canvass bids for these contracts.
“In the light of the scathing Audit Office Report into John Fahey’s IT Outsourcing Program, the Coalition are shameless in their continuation of a Program that has been found to be a resounding failure. Labor maintains the call for the IT Outsourcing Program to cease immediately,” Senator Lundy concluded.
Click here for the Government’s Press Release http://www.dofa.gov.au/media/fahey/media/51of00.html
Contact: Simon Tatz on 02-6277 3334 or 0418 488295
