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 | Customs: EDS $252m |
| Australian Taxation Office: EDS $500m |
| Health Agencies: IBM GSA $360m |
In addition, CSC also secured the Cluster 3 agencies contract and IBM GSA secured the Department of Veteran’s Affairs IT contract which was then extended to the Department of Finance without a competitive tender process. The next big IT outsourcing contract is Centrelink, for which tenders have closed and CSC and Siemens/EDS are allegedly the only bids.
"Recent research published by Meta Group shows that IBM reaped more than $100 million from Federal Government IT projects in the first quarter of 2000 alone. This indicates that the figures contained in the statistics released today will only get worse", Senator Lundy said.
Add to this the decisions like that of BHP to sell BHP-IT to CSC and the Commonwealth Bank’s outsourcing and equity arrangement with EDS, Telstra’s outsourcing of it’s IT to IBM and the future for Australian IT&T looks very gloomy.
"The Coalition has a lot to answer for as our indigenous IT&T sector watches opportunities for work pass them by. Merely sub-contracting to these multinationals is no substitute to genuinely leveraging public procurement to grow a strong and viable IT&T industry sector that can contribute positively to reducing the trade deficit." Senator Lundy concluded.
ABS statistics: www abs.gov.au
31/00. Contact: Simon Tatz on 02-6277 3334 or 0418 488295
"Australian Bureau of Statistics (ABS) data on the information technology and telecommunication (IT&T) industry for 1998/99 confirms a devastating decline in Australia’s IT & T capabilities," Senator Kate Lundy, Shadow Minister Assisting on Information Technology, said today.
"IT&T manufacturing has suffered severely under the Coalition," Senator Lundy said.
Income in the IT&T manufacturing sector was down 33 per cent and employment down 42 per cent, according to the ABS.
"Although the data showed an overall net growth of 27 per cent in revenues for IT&T in Australia, this growth was not enough to offset the reduction in employment in manufacturing - with an overall decrease in the number of people working in IT&T businesses since 1996/97," Senator Lundy said.
"Given that IT skills shortages are still being experienced in IT&T, this is damning evidence of the Howard Government’s failure to facilitate the growth of one of the most crucial aspects of the Australian economy.
ABS statistics also point to a dramatic 27 per cent decline in Australian manufactured IT&T products with a corresponding increase in imports of 21 per cent.
"This is also bad news for the IT trade deficit with exports only rising by 14 per cent and imports rising by nearly double that amount at 27 per cent since 1995/96.
"This represents a growth in the IT&T trade deficit of 25 per cent in the last four years alone.
"These statistics confirm that the Howard Government has neglected a critical industry.
"At a time when other economies are expanding on the back of the strong growth in the IT&T sector, Australia is languishing, with little hope in sight," Senator Lundy said.
ABS statistics: www abs.gov.au
30/00. Contact: Simon Tatz on 02-6277 3334 or 0418 488295
The Prime Minister attended a breakfast for Australia’s Olympic athletes at the Australian Institute of Sport this morning, but it was cold comfort indeed for the sports community as Mr Howard has slashed $16 million from the sports budget and brought an end to the Olympic Athlete Program.
"Mr Howard is happy to bask in the glory Australia’s athletes will bring in September, but leaves it to his Sports Minister to preside over a massive cut in budget allocations to the Australian Sports Commission and Australian Institute of Sport (AIS)," Senator Lundy said today.
"The AIS has admitted that budget cuts will create ‘a bit of a squeeze’ on Olympic programs and athletes in the lead up to Sydney 2000.
"The Sports Commission has indicated that more than 50 jobs will be shed as a result of these cuts.
"The Opposition has fully supported the Government’s commitment to the Olympics, to date. However, the cuts announced in the latest budget mean that Australia’s sporting infrastructure will regress after the Olympics.
"As a cricket fan, Mr Howard should know that being world champion does not happen overnight. It requires consistent and continuous funding and the retention of technical expertise. This is what Australian sport needs.
"Instead of encouraging Australia's athletes to keep on bringing home the bacon, the Prime Minister, with his budget cuts, has effectively told them to suck eggs after the Olympics," Senator Lundy said.
29/00. Contact: Simon Tatz on 02-6277 3334 or 0418 488 295
Concerns raised about the state of the National Gallery's 20 year old air conditioning system prompted ACT Senator Kate Lundy to ask a series of questions to Gallery officials at yesterday's Senate Estimates hearings.
Following several complaints raising concerns about the air conditioning system and air quality within the NGA, and acting on an anonymous complaint, Comcare launched an inquiry in February 2000 into allegations 'that the air conditioning system at the National Gallery of Australia was causing ill health in Commonwealth employees'.
The Comcare inquiry recommended that the NGA:
a) review air-conditioning maintenance procedures to ensure that the intervals between cycles are appropriate, and
b) conduct a review of all sick-leave, including those when no reason is given, to confirm that there are no 'clusters' within work groups that may be attributable to the work environment'.
However, the Senate Estimates committee was told that the Comcare inquiry checked only two of the nine air handling units (AHUs), and 'assumed' that the other AHUs were in a similar condition.
Another report into the gallery's air conditioning system, commissioned in 1999, contained a number of recommendations regarding plant maintenance and upgrades. Senator Lundy has requested a copy of this report be provided to the Committee.
"The Gallery's air conditioning system cost a third of the total building cost and is now 20 years old, Senator Lundy said.
"Considering the seriousness of this issue, the Howard Government must ensure that the Gallery is sufficiently funded to maintain and upgrade the air conditioning system to ensure the highest possible Occupational Health and Safety and public health standards," Senator Lundy said.
28/00. Contact: Simon Tatz on 02-6277 3334 or 0418 488 295
Two senior-ranking health department officials today owned up to having accepted an invitation to run in the Olympic Torch Relay from IBM, the company recently awarded the controversial Health Group IT Outsourcing contract, a Senate Estimates Committee heard today.
IBM won the Health Cluster contract, which includes the Health Department, Health Insurance Commission (HIC) and Medibank Private in controversial circumstances.
Earlier this year, the Office of Asset Sales and Information Technology Outsourcing
(OASITO) admitted that a major foul-up had occurred in the Health group IT outsourcing
bidding process when IBM/GSA was apparently supplied with critical information relating to
final pricing from two competing tenderers.
Reference: 8 February 2000 - OASITO's bungle is IBM's gain
The hand-over date for IBM to take over the Health Group’s IT Outsourcing has been delayed significantly with IBM yet to take the reigns.
"With the hand-over date for IBM to begin well overdue and costing the Department of Health money, this blatant sweetener aimed at high ranking health officials looks like favours to dampen any angst arising out of the ongoing problems with implementation of the contract, Senator Kate Lundy, Shadow Minister assisting on IT said.
The two Health Department officials also stated at senate estimates that they are considering accepting tickets to the Sydney Olympics from IBM.
"At a time when the Department Secretary is receiving largess from an outsourcing contract, 85 jobs are being slashed from Department.
"It appears the Department Secretary is already carrying the torch for the Health Minister - isn’t that enough", Senator Lundy said.
27/00. Contact: Simon Tatz on 02 - 6277 3334 or 0418 488295
In 1998, the Government claimed that 560,000 young people would be beneficiaries of the then new Youth Allowances -but only about 390,000 young people have qualified for Youth Allowances.
Why did the Government inflate the figures by over 160,000?
How have these 160,000 young people, who lost their allowances, been coping?
Senator Lundy asked these questions in her Adjournment speech in the Senate on Thursday night.
"Only one measure to extend Youth Allowances has been announced in the Budget," Senator Lundy said.
"Labor has argued for the inclusion of rural youth in recent amendments to the Youth Allowance legislation. The increase in the assets test threshold for businesses and farms to $1.658 million, will now allow an estimated 7,200 young people from business and farming families to claim the Allowance," Senator Lundy said.
"But the level of the parental income test has been, and remains, ridiculously low - $23,800 being the point at which the maximum rate of Youth Allowance starts to reduce. Payment reduces by 25 cents for every dollar in income above this threshold. The small increase to compensate for the GST (2.5 %), and perhaps some indexation, after 1 July, will not improve this situation.
"Other long-standing concerns about Youth Allowances have been ignored in this Budget.
"Not the least of these is the continued denial of access to income support for unemployed 16-17 year olds, and the growing number of young people in crisis or requiring crisis accommodation.
"Another is the level of the Allowance for needy students. A Government-commissioned study on Budget Standards for Australia found that the independent rate of Youth Allowance provides only 45 per cent of the income required to maintain a standard of living ‘requiring frugal and careful management of resources’.
"The expected 4% increase in the level of allowances after 1 July is totally inadequate.
"Our young people deserve better", Senator Lundy said.
26/00. Contact: Simon Tatz on 02 -6277 3879 or 0418 488 295
ACT Senator Kate Lundy today welcomed the involvement of the Australian Competition and Consumer Commission (ACCC) with respect to Canberra International Airport’s dispute with Qantas.
"The ACCC’s charter is to ensure there is effective competition in the marketplace. This includes airlines," Senator Lundy said.
"The ACCC have a comprehensive working knowledge of the challenges facing major regional airports like Canberra International Airport as a result of previous involvement in Location Specific Pricing issues.
"It is the Commission’s role to prevent large organisations from using their power to diminish fair competition, and I am confident that the ACCC fully understand the flow-on implications for other regional airports if the Qantas action results in Impulse’s presence at Canberra being undermined.
"There is every reason to believe the introduction of another airline to Canberra Airport will increase consumer choice and competition, with the added benefit of providing hundreds of new jobs" Senator Lundy said.
"I look forward to the ACCC playing a constructive role in resolving the difficulties between the parties and hope there is a satisfactory resolution that will see all the airlines working together," Senator Lundy concluded.
25/00. contact Simon Tatz on 02-6277 3879 or 0418 488295
A policy outcome which Senator Alston’s department described as a ‘competitive and sustainable advantage in the global information economy’ was cut by $11.5 million in this week's Budget", the Shadow Minister Assisting on Information Technology, Senator Lundy, said today.
"This indicates just how visionless the Coalition is," Senator Lundy said.
"The $11.5 million cut to the policy outcome (A competitive and sustainable advantage in the global information economy, Budget paper No. 4 Agency Resourcing 2000-01, p 69) is another blow to Australia’s IT capability.
"Senator Alston has missed an opportunity to prepare for the challenges of economic sustainability in a global economy.
"This is a time when other countries are preparing comprehensive blueprints for participation in the global economy and the knowledge society. For example, e-Europe is the European Union’s major policy initiative for the 21st century.
"But under the Coalition, Australia is left with nothing," Senator Lundy said.
"The Information and Communication Technology (ICT) industry is both a dynamic growth sector and the crucial enabling factor for community, government and business to participate in the knowledge economy. Unfortunately, the Government’s record to date has given Australia a reputation as the global village idiot.
"Senator Alston is the Minister for Information Technology at a time of unprecedented and dynamic growth in the ICT sector. Yet he has delivered nothing in this budget that shows initiative or offers a vision for global participation," Senator Lundy said.
24/00. Contact: Simon Tatz on 02 - 6277 3334 or 0418 488295
The Shadow Minister for Sport, Senator Kate Lundy, said today that a recent ruling by the Australian Tax Office has forced the Australian Sports Commission (ASC) to terminate the Direct Athlete Support (DAS) program to our elite athletes from 30 June 2000, just 77 days before the Sydney Olympics begin.
The Direct Athlete Support (DAS) program is common to all Olympic Athlete Program (OAP) squad members and provides funding and bonuses, depending on international performances. The Coalition has terminated OAP funding from 31 December 2000.
DAS squad members have been informed that a recent Revised Tax Ruling from the Australian Taxation Office has identified this funding as ‘taxable income’ and therefore tax deductibility for training expenses will be terminated. (see attached letter)
As a result, the Australian Sports Commission has been forced to cease the Direct Athlete Support program, as it is no longer cost effective.
"Minister Kelly has presided over a massive diminution of Commonwealth investment in sport and now we are seeing the rot start to set in," Senator Lundy said.
"Did Minister Kelly make any submissions to the Treasurer to avert this damaging decision? If she didn’t, she is negligent, if she did, it proves that her Ministerial influence is non-existent.
"Whatever the case, it does prove that the Minister’s claim that Coalition support for Olympic athletes ‘will provide athletes and their support base with funding peace-of-mind in the most critical phase of their Olympic preparations’ (Press Release 00/146, 9 May 200) is nothing more than shallow rhetoric.
"This latest Tax Office ruling, along with the cessation of the Olympic Athlete Program, is causing anxiety and uncertainty in the lead-up the Sydney Olympics," Senator Lundy said.
23/00. Contact: Simon Tatz on 02 - 6277 3334 or 0418 488295
This year’s Federal Budget provides absolutely nothing new for young people, Senator Kate Lundy, Shadow Minister for Youth Affairs, said today.
"Not even scraps from the table. All the Government could come up with is snippets of old news and re-badged funding," Senator Lundy said.
"John Howard’s Federal Budget 2000 announced the following vision for young Australians as they confront the new century and the new economy:
| No new training programs for young people. |
| No real improvements to youth allowance, and |
| Nothing to improve access to, or support for, education, which the government had previously touted as a priority for this year’s Budget. |
"On the other hand, Labor has identified specific areas of concern where more must be done for young people in Australia.
"On Civics education, Dr Kemp’s only budget measures for young people include re-announced funding of a worthwhile, but poorly administered, civics education program in Discovering Democracy. This is a continuation of Labor policy which is being poorly administered by the Coalition.
"What young people really need in terms of civics education is not a pile of leaflets stored in the Minister’s office but a genuine, participatory program for learning about governments and the rights and responsibilities of young people in a democracy", Senator Lundy said.
"The Government must take heed of Labor's ideas on Youth Allowance and, in some cases, they finally have.
"We have constantly called for the Government to increase the allowable family assets for farmers and businesses to qualify for Youth Allowance, so we are pleased that the Government has taken our advice. It is unfortunate, however, there are still too many young people ineligible to access vital support to help them live and work. For them, this Government has provided nothing," Senator Lundy said.
"Young people are still not being compensated for the crippling effects of the unfair GST.
"This year, the Government has allowed for the 4 per cent compensation in the Youth Allowance common to all pensions and allowances. But when the GST kicks in on 1 July, it is unlikely that this will be of any comfort for the great number of young people on low incomes.
"Labor has always argued that the compensation for young people will not be enough, given that many young people are on low incomes and their expenditure patterns mean that most of their expenses will attract a GST.
"Yesterday the Treasurer acknowledged that GST induced inflation would really be 6.75% and not 1.9% as they told everyone at the last election. Given this new figure, the changes to youth allowance will leave thousands of young people significantly worse off," Senator Lundy concluded.
22/00. Contact: Simon Tatz on 02 6277 3334 or 0418 488295
"The Sports Commission board is meeting today to decide how they will cope with Minister Kelly’s cutbacks, with at least eight Olympic Sports earmarked for axing from the Australian Institute of Sport," the Shadow Minister for Sport, Senator Kate Lundy, said today.
"The Minister for Sport has used a budget fiddle to hide a massive $16 million cut to the sports budget. The Budget allocation to the Australian Sports Commission (ASC) has been slashed from $112.894 million in 99/00 to $96.639 million in 2000/01," Senator Lundy said.
| The Budget announcement of a so-called one off $5 million grant for elite sport was announced by Minister Kelly in last year’s budget and is not a new initiative. |
"This $5 million was needed to keep coaches on the books from July 2000 until after the Olympics. Unfortunately, this previously announced funding has not stopped elite coaches and technical experts departing Australia, as there is no job security. The Western Australian Institute of Sport has already lost top coaches to Britain and the ASC estimates that 40 - 50 jobs will be axed because of Coalition funding cuts," Senator Lundy said.
| In last year’s Budget statement, Minister Kelly claimed she had ‘a comprehensive sport policy for the next three years that essentially builds on existing policies and programs’. |
"Interestingly, this has been omitted from this year’s Sports Commission Portfolio Budget Statement. Unfortunately for Australian sport, this is final - and formal - acknowledgment that the Minister has no policies, comprehensive or otherwise," Senator Lundy said.
| According to Budget Related Paper No. 1.13, p 249, Minister Kelly insists that she will release ‘a major policy statement in response to the Oakley report Shaping Up: A Review of Commonwealth Involvement in Sport and Recreation in Australia’. |
"This is the report that the Minister promised to address ‘early in 2000’ as it was supposed to be the blueprint for this year’s sport budget. As a result, the Sporting community held an appropriate and reasonable expectation that this budget would address the funding shortfall created by the loss of the OAP. There is nothing.
"It’s a bit late in the day for the Minister to say she still intends to address the key policy paper after she has slashed over $15 million from the sport budget!
"Decisions will be made in the next few days by the Australian Sports Commission and National Sporting Organisations that will reduce sporting opportunities and infrastructure. This budget was the last chance for many sports and programs.
| On 3 February 1996, when John Howard was Leader of the Opposition, he told journalists at Homebush Aquatic Centre: |
‘Above all however, [sporting] success relies on funding certainty and for this reason it is vital that current funding levels are maintained.’
"Not only have current funding levels not been maintained - they have been significantly reduced. This is another broken promise.
"This Budget will go down in history as the great ‘Kelly’s cutback’.
"It squanders the wonderful legacy that all Australians’ should enjoy from hosting the Olympic Games and it fails to offer certainty and security for elite and community-based sport," Senator Lundy said.
21/00. Contact Simon Tatz on 02 - 62773334 or 0418 488 295
"The Prime Minister has broken a promise to ensure that the Sydney 2000 Olympics delivers long-term benefits to all Australians with today’s Budget confirming a massive $16 million cut to Commonwealth funding of sport.
"This substantial Budget cut mean that the Olympic legacy - the potential for enduring benefits for community-based as well as elite sport - will never be realised under a Liberal Government," Senator Lundy said.
"John Howard has broken yet another Coalition promise.
"On 3 February 1996, when John Howard was Leader of the Opposition, he declared that a future Howard Government would establish a 2000 Plus Task Force:
‘To advise the Coalition in Government on ways and means of ensuring that the benefits of the Olympic Games in 2000 are preserved for years beyond. It would be a great shame if the benefits were once only, and the purpose of the 2000 Plus task force will be to ensure that those benefits are harnessed for future years for all Australians.’
"Where’s this Task Force, Mr Howard?"
"Not only have we never seen or heard of the 2000 Plus Task Force since February 1996, but the cuts announced in today’s Budget does the complete opposite of this non-core unfulfilled promise.
"As a result, the Australian Sports Commission and the Australian Institute of Sport are facing cutbacks to their programs and the loss of coaches and technical expertise after the closing ceremony of the Sydney Olympics.
When Mr Howard was asked in 1996 whether an incoming Coalition Government would maintain the Olympic Athlete Program (OAP) he told journalists
‘We will ensure that there is adequate funding for them’
"Rather than cutting funds and OAP, the Coalition should be using the 2000 Olympics as a springboard to increase participation in sport and recreation and provide sporting opportunities for Australians living outside of Sydney," Senator Lundy said.
20/00. . Contact: Simon Tatz on 02- 6277 3334
A Government decision to discontinue the Olympic Athlete Program (OAP) could result in a sporting ‘brain drain’ of our top coaches and technical experts, the Shadow Minister for Sport, Senator Kate Lundy, warned today.
During senate estimates hearings yesterday, Senator Lundy was told that contracts for both Australian Institute of Sport coaches and other Olympic coaches employed under OAP funding will expire on 31 December 2000.
The Western Australian Institute of Sport (WAIS) has already lost elite coaches because the Government has slashed Olympic funding after the Sydney Games.
Writing in the latest issue of WAIS, the official journal of the Western Australian Institute for Sport, Director, Mr Wally Foreman, asserted that:
‘The migration of coaches is taking on epidemic proportions. There is an exodus of coaching and science expertise from the system that will make it impossible for Australia to maintain its current level of performance post-Sydney. The loss of OAP funding in particular has created a high level of insecurity…if we can’t retain the OAP funding, the system will regress rapidly. This is not just about dollars. It’s about retaining knowledge, experience and skills.’
"The elite coaches we have in Australia are passing on world-class skills that we cannot afford to lose once the Games ends," Senator Lundy said.
"To ensure that Australia does not suffer the predicted ‘coach poach’, the Coalition must ensure that sufficient funding is in place so that we retain our sporting knowledge and skills base.
"It is paramount that Australia has an Olympic legacy that the community can build on - and the best way to ensure this is by proving federal funding so we can retain the world’s best coaches and technical expertise," Senator Lundy said.
19/00. Contact: Simon Tatz on 02- 6277 3334 or 0418 488295
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