The Department of Communications, Information Technology and the Arts (DCITA) allowed numerous breaches of government IT outsourcing contracts, leaving small business in the IT Industry out to dry, a Senate Estimates hearing was told.
Under questioning, it became clear that it has been over four months since the DCITA learned that Health Department IT outsourcer, IBM GSA had reneged on three specific industry development commitments designed to assist local ICT small businesses.
The Coalition have let these breaches go without penalty – despite these commitments being a key condition of winning the Health Group ICT outsourcing contract.
At least one of these Australian ICT small businesses has gone into liquidation.
Other IT outsourcing companies, including EDS, IPEX, CSC and Telstra have either sought to modify or failed to achieve some of their Australian industry development contractual obligations.
Senator Alston claimed that the outcomes could be simply modified to suit large foreign companies such as IBM, CSC and EDS and stating that “…you may need to [lower the bar], that’s what being flexible is about.”
This outrageous stance is designed to excuse multinationals in clear breach of their contracts and is unacceptable.
SMEs in the IT industry have been forced to rely on the Industry Development commitments as it was their only opportunity to participate in IT outsourcing contracts under the Coalition’s flawed and now defunct program.
I call upon the Minister to defend the plight of these companies, not pander to the big end of town.
Unfortunately Senator Alston has once again shown the true colours of the Coalition and has failed to protect Australian small businesses in the local IT industry, allowing multinationals to escape outsourcing breaches unscathed.
11 February 2003. Media Contact: Adina Cirson 02 6277 3334 or 0418 488 295
