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Information and communications technology—the way ahead

Daryl Williams, Information Age

04/12/2003 15:52:56

The development of the information economy is one of the most important transformations in recent history. It is on a par with the invention of printing and the spread of mass literacy. The Australian Government recognises the importance of information and communications technology (ICT) as a key platform for Australia’s future prosperity. It is now generally accepted that information and communications technology has been the driver of much of Australia’s productivity growth in recent years. OECD research shows that ICT was responsible for, on average, a quarter of Australia’s GDP growth between 1995 and 2001. No area of the economy has escaped the pervasive transforming effects of ICT. From mining to wine-making, to health and education services, ICT has enabled traditional industries to become more efficient, to expand their markets and to become more productive. The Australian Government is committed to supporting the development of this crucial sector. Accordingly, the Government has delivered a range of concrete initiatives to support the establishment of Australia as a strong and leading player in ICT. Key measures include the establishment of National ICT Australia (NICTA), a global centre for leading edge ICT research and training, the development of ICT small-to-medium enterprises (SMEs) through the Building on IT Strengths (BITS) Incubator program, and funding support for advanced and regional networks through the Advanced Networks Program and National Communications Fund. We are also improving access to venture capital through various reform processes. These include the introduction of venture capital limited partnerships to implement a world’s best practice vehicle for attracting such investment to Australia. The Government has also provided strong strategic leadership for the ICT sector through the ICT Framework for the Future, or F3, process that provides a blueprint for all industry stakeholders to take forward the ICT industry in Australia. Our commitment is reflected in the Government’s ongoing support for future innovation initiatives and a collective approach to addressing the issues raised in F3. The F3 report, released in April this year, focuses on our innovative capabilities and on cementing Australia’s broad ‘information capabilities’ in a global context. It is important for the future growth of the ICT industry that all key stakeholders work to take forward the F3 agenda and to improve Australia’s information capabilities, both as a leading edge user and producer. The new science and innovation measures currently being developed to follow on from the Government’s $3 billion Backing Australia’s Ability will need to position Australia to respond effectively to the economic challenges we are likely to face over the medium term. The implementation of the National Research Priorities and the blueprint provided by the ICT Framework for the Future will also be important inputs into the development of new innovation measures. Even though the broadband market is at a relatively early stage in its development, the Government recognises that it is strategically important to the ongoing economic and social development of Australia. The innovative use of broadband is critical to Australia’s ability to participate in the global economy competitively. Broadband reduces constraints of distance and greatly increases the quality of communications in many sectors. This paves the way for productivity gains throughout the Australian economy, including in regional and rural Australia and in service sectors such as health, education and government services, as well as research and national security. Enabling the benefits of broadband connectivity is an important priority for the Australian Government. This commitment has been demonstrated by the extensive policy review process conducted in 2002, which resulted in a range of measures being introduced to accelerate broadband development and take-up, particularly in regional, rural and remote areas. This policy review included the Regional Telecommunications Inquiry, the Higher Education Bandwidth Advisory Committee process, the House of Representatives Inquiry into Wireless Broadband Technologies and the F3 process. The Australian Government is also working with State and Territory governments to develop a National Broadband Strategy that will provide a unified vision and strategic direction for the future of broadband connectivity in Australia. The National Broadband Strategy includes initiatives designed to improve broadband availability and affordability for regional, rural and remote areas, as highlighted by the Regional Telecommunications Inquiry. These include: • a $107.8 million Higher Bandwidth Incentive Scheme to ensure affordable broadband services are more widely available; • $8.4 million for Demand Aggregation Brokers to operate at regional and sectoral levels to develop local broadband connectivity solutions; and • a $23.7 million Coordinated Communications Infrastructure Fund to build on the broadband infrastructure developments in the health and education sectors.

The ICT sector is alive and well in Australia. Not only does this innovative sector have the potential to transform and increase the competitiveness of our traditional industry sectors, it also has the ability to create new opportunities for the Australian economy.

ICT will continue to be critical to our national prosperity for the foreseeable future. It is essential that all levels of government and industry work together to ensure the continuing strength of this sector.

- The Hon Daryl Williams, Minister for Communications, Information Technology & the Arts