ICT Ignored - NOIE Knee-Capped

Kate Lundy - Shadow Minister for Information Technology and Sport

Media Statement - 14 May 2002

The Coalition has demonstrated that its commitment to the Information and Communications Technology (ICT) sector was nothing more than a passing fad, the Shadow Minister for Information Technology, Senator Kate Lundy, said last night.

'In a budget largely devoid of any mention of the crucial ICT industry sector, the only notable mentions have been the knee-capping of the National Office of the Information Economy (NOIE) and the reduction of the first instalment of funding to the ICT Centre of Excellence program,' Senator Lundy said.

NOIE has lost responsibility for ICT industry development:

'NOIE has transferred to the Department of Communications Information Technology and the Arts (DCITA), those functions directly related to the growth and development of the Information and Communications Technology (ICT) industry. Those functions include the Centre of Excellence program and other international activities such as supporting international telecommunications forums.' (Government Budget Papers, Portfolio Budget Statement Communications (Information Technology and the Arts) Budget Related Paper No. 1.3, page 387)

'Clearly NOIE is being stripped of a significant area of policy and programs, a significant knee-capping which can only be interpreted as a loss of commitment to and confidence in the Office by the Minister,' Senator Lundy said.

'Symbolic of this worrying development is a reduction of the first instalment of funding to the ICT Centre of Excellence program, which has been reduced from the promised $8.8 million to $7.5 million.

'Information regarding the forward years' expenditure on this $130 million project has not been disclosed in the budget papers, so Labor will be pursuing this in Estimates.

'Finally, it appears that the Coalition's commitment to 'Competitive and effective communications and information technology industries and services and improved access to Government information' (Outcome 2) has been reduced by around 15% or around $76 million. We will be investigating precisely which programs have had their funding cut through Senate Budget Estimates hearings.

'The expectations of the ICT sector were very low, which in itself is a sad state of affairs, but their disappointment in a Government lacking in foresight in vision is justified. As demonstrated by this budget, any commitment to ICT was clearly a passing fad.' Senator Lundy concluded.