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| The extension of an IT outsourcing regime in government departments which has seen both a stagnation in the level and quality of departmental IT services, as well as the marginalisation of Australian companies seeking to grow and develop their export capability. |
This is evidenced in The IT Engine Room - SMEs in Australias IT&T Industry, a report jointly sponsored by the Department of Communications, Information Technology and the Arts and the Australian Information Industry Association. This report found that, along with other negative impacts that the Government has generated for SME's in the IT&T industry, the Federal Governments IT outsourcing program is perceived as being inconsistent with the interests of IT&T SMEs (see page 16 of the report).
| The announcement yesterday of the six man BITS Incubator Program Advisory Board, as a missed opportunity for the Government to profile women in IT. This is especially disturbing given the rhetoric which accompanied Women Online Week (WOW) last year, and provides further proof that the Minister's hosting of WOW was nothing more than a cheap PR stunt. |
| The continuing perception of Australia as a global village idiot, following the enactment of the Broadcasting Services Amendment (Online services) Act 1999. Despite the best efforts of the IT industry to build a manageable regime, the Act continues to fuel fears that the Government is legislating in areas of little or even detrimental effect on Australia's capacity to promote itself as an IT savvy nation. |
| The Government's tardiness in legislating on Internet based privacy, undermining both consumer and citizen confidence in the Internet, as well as reducing the rate of e-commerce uptake in business to consumer relationships. \ |
| The Government's own Commonwealth Departments falling dismally behind in getting services online. Senator Alston's continues to be a vocal exponent of the virtues of the Internet and yet the Coalition's own departments are failing dismally to lead by example. This can be evidenced in an ANAO report entitled Electronic service delivery, including Internet use, by Commonwealth government agencies, which states that only 2% of agencies would be at the final stage by 2001, with a view to providing a whole-of-government integrated service. |
The failings of the Commonwealth Departments in this regard is linked to structural flaws in the Government's IT outsourcing program which means that departments and agencies are losing strategic control of info management in the information economy.
"With the US in an economic boom spurred by technologically driven efficiency, Australia needs full access to the Internet, as well as the skills and confidence to utilise these technologies to our national advantage," Senator Lundy said.
"The 5% productivity increase in the US in the second half of 1999 is the largest gain since 1992, and according to experts, is just the beginning of the productivity gains that will be achieved as the Internet matures and revolutionises business.
"The Government has shown itself to be negligent and incapable of understanding the full value of the net and what it means to Australian society. They will only ever be playing catchup," Senator Lundy concluded.
10/00 Contact: Melanie Stutsel (02) 6277 3334; 0417 002 317

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Junior soccer referees, who referee games for players as young as six years old, have already been hit by the Howard Governments GST, Shadow Minister for Sport, Senator Kate Lundy, said today.
Registration fees for junior referees for this years winter season, which commences next month, include provision for the GST from 1 July 2000.
The 2000 Membership Application for Soccer Referees Canberra (see attached application form) includes the GST component.
This shows that junior referees, some as young as 11 and 12, are being caught up in the GST net because they are prepared to be available to referee matches for primary school players.
Mr Howard and Mr Costello should explain why their Goods and Services Tax treats a 12-year-old refereeing an under-7 soccer match as a taxable economic service, Senator Lundy said.
This is taxation gone mad.
Does it mean that when Mr Howard promised that nobody would be worse off under his new tax, he forgot to exclude junior volunteer amateur soccer referees? Senator Lundy said.
09/00 Contact: Simon Tatz on 02-6277 3334 or 0418 488295

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"The Office of Asset Sales and Information Technology Outsourcing (OASITO) was forced to admit a major foul-up had occurred in the Health Group IT outsourcing bidding process", Senator Kate Lundy said after hearing evidence from both the Department of Health and OASITO, during Senate Estimates hearings this week.
"In what OASITO described as an 'inadvertent error', the winning tenderer - IBM/GSA - was apparently supplied with critical information relating to final pricing from the other two competing tenderers, CSC and EDS two months before IBM/GSA was announced as the successful bidder, Senator Lundy said..
"Such a massive breach of tender probity should normally result in cancellation of the process. This would be the fairest option given the highly competitive tender process involves spending hundreds of thousands of dollars on complex preparations.
"OASITO managed not only to keep the blunder secret from the steering committee evaluating tenders for the Health Group, which includes the Health Insurance Commission, The Department of Health and Community Services and Medibank Private, but they secured agreement from the two compromised vendors not to pull out of the process.
"Despite active attempts by OASITO to keep the foul-up under wraps, an explanation eventually had to be supplied as rumours of impropriety and corruption were circulating widely.
"The Minister for Finance must supply a copy of the probity auditors report into this extraordinary foul-up. So far the Government has refused.
"If this report, and documents relating to this matter, are not released publicly I can only interpret this as the Minister and OASITO having something to hide.
"A probity audit report serves no purpose if it is kept secret.
"The Minister is under continuing pressure as the IT Outsourcing Program fails to deliver real savings to agencies and departments. This latest row is another grave indictment on the capacity of OASITO and the Department of Finance's ability to manage a structurally flawed program", Senator Lundy said.
08/00 Contact: Simon Tatz on 02-6277 3334 or 0418 488295

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The Minister for Sport is refusing to address controversial recommendations contained in Shaping Up - her much heralded White paper into the future of Australian sport, Shadow Minister for Sport, Senator Kate Lundy, said today.
During senate estimates hearings on 7 February, it was revealed that the Minister has no intention of addressing the reports contentious recommendations until sometime in the middle of the year possibly after the 2000-01 budget has been handed down and just a few months before the Sydney Olympics begin.
"Shaping Up, which cost the Government over $270,000, recommends an increase in Commonwealth commitment to sport. This will determine the future of many athletes and coaches dependant on Government funding.
Australias athletes and sporting organisations have been anxiously awaiting the Ministers response to this report, which the Government promised would be delivered "in early 2000".
"Well, its early 2000 and Minister Kellys office is now telling the Australian sporting community that her White paper will not be considered until the eve of the Olympics.
"Australias post-Olympic sports policy is sitting on a shelf because neither the Minister or Acting Minister for Sport will address its recommendations.
"The Sports Minister is walking away from her own review, even though she spent the past year claiming that Shaping Up:
| [will be the] "greatest change in the administration of Australian sport and recreation in recent history" (Canberra Times 2/6/99) | |
| "the most far reaching assessment of Australian sport in 20 years" (Press Release 99/171, 8/6/99) | |
| "the most thorough look at sport and the sports industry in Australia in 25 years" (Sunday Telegraph 28/2/99) | |
| "the review process [will] assure strong policy direction for the next 10 to 15 years." (Press Release 99/156 1/6/99) | |
| "[is] about staying in front. The world is copying what we have been doing and if we stand still, they will pass us." (Courier Mail 1/6/99) |
"Lets hope the Minister is wrong when she says the sporting world will pass us by if we stand still, because the Government certainly isnt doing much movement in this portfolio", Senator Lundy said.
07/00. Contact: Simon Tatz on 02-6277 3334 or 0418 488295

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Essential water safety skills, such as learn to swim classes, will be slugged twice when the GST is introduced, Shadow Minister for Sport, Senator Kate Lundy, said today.
The GST will be applied to both the cost of entry into public swimming pools and the cost of learn-to-swim classes, Senator Lundy said.
Imposing the double-whammy of two GST charges on water safety classes means that many Australian families will be unable to afford learn to swim lessons for their children.
It is essential that our children learn proper water safety skills.
Drownings are one of the main causes of death of Australian children and for every child that drowns, at least 10 more are treated in hospital for serious injuries.
According to a recent report by the Royal Life Saving Society, 2673 Australians drowned in the five year period 1992-97. Tragically, this includes 353 children under five years of age.
Learning how to survive in the water should be a right, not a privilege.
The GST will raise the financial barrier that much higher. Lower income and larger families will face increased charges every time they want to go the local swimming pool and every time their child needs to learn to swim and survive in water.
Acting Sports Minister Joe Hockey should remove the GST on learn to swim and basic water safety classes as these are essential to addressing the tragic number of children and young Australians who die in water-related accidents each year, Senator Lundy said.
06/00. Contact: Simon Tatz on 0418 488295 or 02-62773334
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