AIIA Welcomes Budget

AIIA Welcomes Budget

By Greg McNevin

May 20, 2008: The Australian Information Industry Association (AIIA) has welcomed the Federal Budget, however, while it supports the long-term initiatives contained within it, the association is pressing for greater focus on business development.

The AIIA believes that many parts of the budget will have positive impacts upon the ICT sector, however, according to AIIA Chief Executive Officer, Ian Birks, there was a distinct lack of focus on business stimulus across the digital economy, particularly in the context of other key goals outlined in this Budget.

“The digital economy needs to be recognised for the economic contribution it makes in its own right,” said Birks. “This is particularly important given ICT’s status as horizontal industry that will underpin many of the government’s aspirations across the wider economy – such as healthcare reform, the education revolution and emissions control.

“Business stimulus across the ICT industry is very important. An innovative and thriving ICT sector will be essential to meeting the future challenges identified by the Rudd Government.”

The AIIA said it was particularly disappointed in the cutting of the Commercial Ready program, with Birks noting that it had proven to be a very successful stimulus for SME growth in the sector.

“We hope that an alternative to Commercial Ready will be implemented, and press the Rudd Government to support the industry through an interim scheme until the results of the Cutler Review are delivered,” said Birks.

“SME innovation and growth is a critical component of Australia’s aspirations in the information economy. Technology innovation is now recognised as a major driver of productivity growth in the Australian economy, and we cannot afford to fall behind in these areas.”

Beyond Commercial Ready, the association says that this Budget has recognised ICT’s role as an essential ingredient in building a services based economy in Australia, citing the inclusion of Broadband in the Building Australia Fund as the most prominent example of this.

It also says the Digital Education Revolution policy is a significant step towards creating essential skills in Australia’s future, as without a workforce skilled in these areas Australia will not be able to drive innovation.

The AIIA says that it is keenly interested in what percentage of the $44 million earmarked for the establishment of the National Emissions Trading Scheme will be set aside for ICT infrastructure.

“As with so many of our key national challenges, the ICT industry is at the forefront of new environmental technologies, providing opportunities to develop energy efficient products and services that help minimise Australia’s environmental footprint. At the same time, ICT is underpinning innovation that is assisting other sectors become more environmentally sustainable,” said Birks.

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