Senator the Hon Helen Coonan
Minister for Communications, Information Technology and the Arts
Deputy Leader of the Government in the Senate
Address to the opening of CeBIT Australia
Sydney
Tuesday 1 May 2007
Thank you Jackie [Jackie Taranto, Managing Director, Hannover Fairs Australia)
I would like to take the opportunity to extend a very warm welcome to our distinguished guests from the People’s Republic of China, and Minister President Christian Wulff, Minister President of Lower Saxony, Germany.
CeBIT Australia has established itself as a leading information and communications technology trade show in the Asia Pacific since 2002.
In 2007, five years on, CeBIT Australia has attracted a greater number of exhibitors, business visitors and high level government and industry leaders.
Clearly, this is the place on the ICT calendar to get some real work done!
CeBIT Australia has over the years become an important international event for Australia’s ICT industry, and the event where some great partnerships are born and networks strengthened.
I was fortunate enough to be at the 2005 CeBIT Australia.
It is an ideal opportunity for Australia’s ICT industry to showcase its capabilities, products and services to potential customers and investment partners, both local and international.
It also provides a perfect platform for leading business and research professionals to share knowledge, exchange ideas, and learn new technologies.
The History of CeBIT
I thought it would be interesting to look to the past so we can get some perspective on the future.
Most of you here are probably aware that CeBIT’s origins lie in the Hannover fair which was first held in 1947.
By 1950 the ‘office equipment industry’, as it was then known, was the third largest exhibitor group.
In the 1960’s, the fair reflected the electronics boom and in 1965 the 820 universal computer was presented at the fair.
The so called office equipment exhibitors became increasingly important and dominant at Hannover fairs.
During the 1970s the data processing market was growing at an incredible rate and becoming increasingly specialised. A flood of data processing and software companies were emerging.
By now of course the ‘office equipment industry’ had officially become CeBIT – The “Centre for Office and Information Technology” and was on its way to becoming a fair in its own right.
In 1985 Nokia demonstrated its first GSM phone at CeBIT. Remarkable given that in 1986 the display category ‘Telecommunications’ had only a couple of hundred out of the 2000 plus exhibitors.
CeBIT’s reputation and influence has continued to grow. In a way it has mirrored the growth of the ICT industry both here and overseas.
The importance of ICT
There is a lot of talk right now about the mining boom driving the Australian economy and our prosperity.
There is no doubt the demand for Australia’s minerals and coal has been great for our economy and increased our national wealth.
But we should not lose sight of the fact that Information and communications technology is making a significant contribution to Australia’s economic growth and prosperity.
Indeed, it is probably the most important driver of productivity and innovation right across modern economies.
It is estimated that ICT has contributed to between 50 and 80% of productivity growth in Australia’s services and manufacturing sector over the past 20 years.
Everyday in every way we see the impact of ICT and how it is helping transform business, government and society.
It is transforming traditional industries and leading to new opportunities, products and services across the economy.
Australia continues to have a reputation as an early adopter and a strong user of ICT.
Importantly, ICT increases Australia’s capacity to innovate, to undertake new kinds of research.
The sort of research that will underpin the development of new technologies and industries, as well as achieve ongoing productivity growth.
Recent studies have revealed that the extent of that productivity growth is often difficult to measure or estimate due to the deeply embedded nature of ICT across the economy.
The significance of Australia’s ICT
Over the last decade the Australian Government has put in place policies to ensure Australia has a sophisticated, world-class ICT sector that can compete with the best of the best.
Today, Australia is the 11 th largest ICT market in the world and the fourth largest in the Asia Pacific region after Japan, China and Korea.
I ask you to pause and think about that fact and what it means when you consider the size and population of our country. .
And then consider these facts:
In 2004-05, total revenue in Australia from the production of ICT goods and services was $54.4 billion and 60 per cent of this revenue was from telecommunications services.
ICT industries in Australia earned a total income of $103 billion in 2004–2005.
Australia’s total ICT goods exports in 2005-2006 remained steady at $2.17 billion.
The sector employs 371,000 people in Australia.
Total ICT research and development expenditure in Australia is nearly $3 billion per annum, accounting for approximately 25 per cent of gross expenditure on R&D.
Australia’s policy initiatives
Of course I can’t come here today without mentioning the significant contribution that the Australian Government is making to the sector.
We have always taken the view that we work with industry and help businesses, large and small, create markets and opportunities.
As such, the Australian Government is building a policy framework to better harness the value of ICT and encourage growth and investment in ICT.
Australia’s ICT policy initiatives include setting priorities, skills development, supporting infrastructure and R&D, supporting small and medium sized enterprises, promoting trade, encouraging a competitive telecommunications market, promoting digital content providers, leveraging ICT procurement, and further underpinning the information economy.
Innovation and R&D
Over the 11 years of the Howard Coalition Government we have spent billions supporting the industry for the simple reason that we know it’s important.
I believe innovation in ICT will help us solve some of Australia’s major challenges.
The Australian Government has maintained a strategic focus on encouraging innovation to develop sustainable competitive advantage, stimulate the development of new firms, foster the widespread use of ICT to achieve productivity benefits and grasp global opportunities for our ICT firms.
The Government has committed $380 million as part of its $8.3 billion Backing Australia’s Ability innovation package to establish a National ICT Centre of Excellence—better known as NICTA to attract and retain our best and brightest ICT research talent.
The Australian Government also supports the development of advanced communications networks and the trialling and demonstration of leading edge broadband applications through the $60 million Advanced Networks Program.
The projects funded through the Advanced Networks Program are recognised as providing critical infrastructure for e-research and industry R&D in areas including tele-health, astronomy and wireless networks.
The Advanced Networks Program has delivered major innovations, such as building the first very high capacity network in the southern hemisphere.
New applications developed to date include innovative 3G mobile wireless services and the Virtual Critical Care Unit which was trialled in hospitals in NSW and has now been commercialised by Telstra.
ICT skills
- Of course this work and more requires a high quality pool of skilled workers.
- The Australian Government is committed to ensuring we have the ICT skills we need and that the market for ICT skills operates efficiently.
- Building and maintaining a sustainable and world-class ICT workforce and ICT skills base is necessary to meet the current and future needs of the Australian economy.
The Australian Government has undertaken a range of activities to further develop Australia’s ICT workforce and skills base.
The Government is working with industry and other key stakeholders to progress the recommendations of the Building Australian ICT Skills report, and funding has been provided to several key initiatives.
Skills based initiatives include the ICT skills recruitment and tracking monitoring system, additional HECS funded places in ICT, maths and science and the Industry Leadership Group.
Program support for ICT companies
So, as you can see, the infrastructure for developing Australian ICT is there and the Government remains focussed on fostering an environment where ICT development, application and innovation can succeed.
Part of this environment is providing targeted support for Australia’s ICT companies.
The Australian Government’s ICT Incubators Program, for example, provides seed capital and business advice to support early-stage ICT start-ups through eight incubators located across Australia.
Since 2000, the Australian Government has invested $122 million to support ICT start-ups through the incubators’ seed capital funds.
Over 410 ICT start‑ups have been accepted as incubatees with over 260 graduating since 2000.
Trade support
Domestic markets for products and services are vital and in many ways are providing ground for the foray into the highly competitive international marketplace.
The Australian Government is also committed to supporting ICT industry participation in the global ICT trade market.
As part of this commitment, the Australian Government has negotiated increased access for Australian suppliers of goods and services to key export markets through free trade agreements.
We have FTAs with US, Singapore and Thaila nd and are currently negotiating FTAs with China, Malaysia, Japan and in partnership with New Zealand—ASEAN.
Conclusion
I’d like to conclude by wishing all the exhibitors and delegates here everyone here a successful event.
In the first year of CeBIT Australia had 387 exhibitors and 15,800 visitors. Last year it was 721 exhibitors and 30,000 visitors. By my calculations CeBIT has almost doubled in size in just 5 years.
Amongst us here today are new ways of doing business, new opportunities, new innovations and new technologies.
Indeed, the next new big thing may be amongst us just as it was in 1965 and 1987 CeBITs.
I wish you all a productive and successful CeBIT 2007.
Thank you
ICT and productivity, DCITA 2007