Senator the Hon Helen Coonan
Minister for Communications,
Information Technology
and the Arts

Deputy Leader of the Government in the Senate

Developing a National ICT Capability

Address to ACS Council Breakfast

Canberra

Friday 25 May 2007

Thank you

In 1996, the then President of the Australian Computer Society, Mr Tom Worthington — whom I am pleased to see is here today—gave a speech in which he envisioned the world 10 years on in 2005.

In this tongue-in-cheek vision, he predicted the winner of the 1996 election would de-regulate the Telecommunications industry; I am happy to report his skills as a seer were spot on when we were elected a year later, and did in fact get the Telstra privatisation underway.

Tom also predicted that Telstra and Optus would rollout a significant cable network for Pay TV; and they certainly have.

And he predicted that competition from Internet voice applications would start to destroy the long distance monopoly the telcos had enjoyed.

Again, Tom was on the money.

So when the Australian Computer Society heralded the launch of their ICT Vision for 2017 – on the back of past performance, I sat up ready to listen!

I place on record my acknowledgment, as Minister, for the considered contribution of the ACS to the ICT capability policy debate in Australia and the critical important a successful ICT sector plays in the future prosperity of our nation.

The Australian Government is committed to working alongside industry leaders like the ACS to ensure that Australia has the ICT capacity it needs and must deploy in today’s global economy.

There is no doubt that ICT is a key driver of economic growth, but to see it as ‘just’ this, belies the transformational powers of ICT across a multitude of industry sectors including - mining, agriculture, entertainment, services, education, health – everything.

ICT has become a resource to transform, innovate, solve and add value. And accordingly, it has been factored in as a consideration right across Government, not just my own Department of Information Technology.

Working together we have created an environment to grow and prosper.

We have put the fundamental building blocks in place – a strong economy and flexible policy framework - to ensure a thriving, innovative, value adding ICT industry.

I understand that the Government has a responsibility to remove obstacles to progress and work in tandem with industry.

That’s why we are addressing the skills shortage, providing investment funding and have put in place the policies essential to encourage enterprise and opportunity.

Industry numbers

The facts and figures reflect the remarkable outcomes of industry, government and research institutions working together.

Australia ’s ICT industry is a key contributor to Australia’s economy, accounting for about 4.5 per cent of gross domestic product.

Australia is the fourth largest ICT industry in the Asia Pacific region after Japan, China and Korea.

ICT industries are generating billions of dollars of revenue and export income. And as we know, employment growth in the sector is exceptional and presents new challenges.

A lot has changed since 1996. Indeed, the pace of this change has been extraordinary and continues to increase.

I am extremely pleased that so many of you here today have got behind the 10 year strategic vision from the National ICT Industry Alliance for the future of the ICT sector.

When you take a step back and look at the big picture, it is clear that Government and Industry are working toward the same outcomes and are intent on using the same tools.

Innovation

The recent Federal Budget saw the Australian Government commit $6.5 billion to science and innovation in 2007-08.

This builds on the $8.3 billion, 10 year Backing Australia’s Ability (BAA) package which is a cornerstone of the Federal Government’s commitment to policy supporting innovation.

• In addition, the Government’s recent $1.4 billion Industry Statement will further encourage innovation and productivity improvement in Australian firms building on previous initiatives to continuously improve the competitiveness of Australian industry.
• A key component of this competitiveness is access to seed funding.
• In this context, the ICT sector has benefited from the ICT Incubators Program which has provided $122 million to assist ICT start-ups with the commercialisation of innovative ICT products/services and to enhance their capacity to attract further private investment.
• The program has supported over 400 ICT start-ups and attracted over $250 million in private co-investment.

Innovation in procurement practices

The Australian Government recognises the point made in the NICTIA plan that as an influential purchaser of ICT goods and services in Australia, it has the ability to make a significantly positive impact by changing the way that it does business.

That’s why we made changes to the way Government contracts the ownership of Intellectual Property (IP).

• The Government is determined to give industry every opportunity to commercialise IP developed under government contracts.

Skills

• If ICT has underpinned productivity growth, in turn ICT skills have logically underpinned this growth.
• All of us here are impressed with the resilience of the ICT industry, and in particular the way it recovered from the dot com crash.
• Consequently, demand for ICT skills has strengthened in recent years.
• Two million jobs have been created in the life of the Howard Government and many of them have been in the ICT sector.
• And let’s not forget that most jobs utilise ICT in some capacity.

We have undertaken a range of activities to further develop Australia’s ICT skills base and to increase the pool of ICT workers.

The Government is working with industry and other key stakeholders to progress the recommendations of the Building Australian ICT Skills report, notably through the Industry Leadership Group on ICT skills.

We are addressing the need to improve the number of students choosing ICT as a training option. We have put extra maths and science places in the HECS scheme.

• ACS and the AIIA have taken the lead and most will be aware that I have approved a grant of $220 000 to create an open-access, national ICT skills recruitment tracking and monitoring system.
• Also, workshops will begin in June that address the role and image of women in the ICT industry.
• The workshops are part of $70,000 sponsorship for an initiative to encourage the development of ICT workplaces that are more attractive and flexible for women.

International Opportunities and Global Integration

Since 2002, exports of computer and information services have grown rapidly to exceed $1 billion.

But I understand and acknowledge that many of you here have concerns about the level of exports being exceeded by ICT imports.

The Government has signed a Free Trade Agreement with the USA and is negotiating similar agreements with other countries including Japan, as well as our ICT MoU with India.

These initiatives are freeing up markets, fostering closer working relationships and most importantly creating new opportunities for Australian ICT players.

Furthermore, Austrade, ComICTA and Invest Australia are working on creating a common brand for the Australian ICT sector and initiatives such as the ICT ‘Secrets’ Awards are providing money to allow companies to promote their products overseas.

You here know that we are not engaged in a race to the bottom – our specialization is heavy with ‘value adding’, innovative solutions and leading not copying.

There is more we can do, and we are doing it, but I am confident about the future.

ICT Infrastructure

As you well know broadband technology is evolving fast and there are always new challenges - policy in this area is never a ‘set and forget’ exercise.

Government’s broadband plan

Broadband is front of mind at the moment and I know all of you here have a strong interest - it is important

Special mention was made of broadband in the NICTIA plan so I want to take this opportunity to briefly detail the firm, deliverable plan we have for Broadband in Australia.

Our national broadband policy is not one dimensional or static.

Critically, it is fully costed and deliverable.

The Australian Government has an integrated strategy that will provide all Australians with access to high speed broadband regardless of where they live.

We will continue to promote the development and use of smart communications technologies in key areas such as health and education and I continue to be impressed with the innovation that is rolling out under the Clever Networks program in this area.

But, that is not to say that more is not needed to improve further.

In a fast paced environment we need to be ahead of the game, and well placed to scale up.

Clearly the objective needs to be to reach the right balance between achieving regulatory certainty and a fair return on investment while maintaining the vigorously competitive market structure that consumers have benefited from.

Coordinated National Solution

The Government recognises that Australia will require a mix of technologies to deliver the services that people will need into the future.

In some circumstances this may mean VDSL running off fibre, in others it maybe ADSL2+, in other situations high speed wireless may be the right solution.

It is a very brave person who would say that they knew all the technological answers for Australia over the next 5 years (but maybe Tom has the answers once again??)

The reality is that a mix of technologies will be the most effective means to deliver the services that Australians need.

I want to mention this morning some of the higher-order, research and industry initiatives the Government has been funding.

The Advanced Networks Program established in 2000 will deliver long term benefits.

The ANP has delivered major network innovations, such as building the first very high capacity (10 gigabytes per second) network in the southern hemisphere (connecting Brisbane, Sydney, Canberra, Melbourne, Adelaide and Perth) and establishing Australia’s first 3G mobile wireless service.

The high performance networks developed through ANP are connecting research institutions, pioneering innovative e-Health solutions, and supporting leading edge applications developments for a range of sectors.

For example, the Virtual Critical Care Unit (ViCCU) – a broadband video linked system between Katoomba and Penrith - allows a specialist at the Nepean Hospital to remotely lead a critical care team at the Blue Mountains District Hospital. 

This long distance care has been made possible by new technology that transmits high quality audio, video and vital signs and data and enables the specialist at Nepean to control multiple cameras and interact with emergency staff during life saving procedures in Katoomba.

A Virtual Surgical Training Environment developed through the ANP is now being commercialised.

This is a networked technology that uses 3D simulations and very realistic touch feedback to train surgeons in temporal bone drilling for bionic ear implants.

A new tele-echocardiography system is being trialled which enables real-time remote consultations and diagnosis between doctors at three hospitals in Tasmania.

This provides clinicians in Hobart, Burnie and Latrobe with a highly interactive examination facility and transmission of rapidly moving images of the beating heart.

The system has the potential to reduce unnecessary patient transfers, allows pooling of scarce medical specialist resources and provides educational opportunities.

Key companies in Australia’s successful film post production industry were connected for the first time by gigabit capacity optical fibre and new technology courtesy of the ANP to give them bandwidth on demand over a secure channel and networked sharing of resources.

We will continue to take the lead in shaping Australia’s broadband future through a stable, yet responsive regulatory environment, through targeted and effective investment in uncommercial areas and by ensuring there is appropriate incentive to invest in next generation broadband infrastructure.

Conclusion

From what I’ve outlined briefly here today, you can see that the Australian Government is working with the new ICT Capability policy paradigm rather than focusing solely on the narrower ICT industry.

And essentially I believe what I have outlined fits is well with the NICTIA vision for the next 10 years.

We all agree that skills are a priority.

We all agree that innovation and home grown development of technology is critically important.

And we all agree that we need to do what we can to ensure that we engage globally.

It is clear that despite ongoing challenges the ICT industry is growing.

The Australian Government will continue to ensure that we put in place policies that support a sophisticated, world class ICT sector that can compete with the best, take advantage of international opportunities and continue to contribute to our economic growth.

I encourage the ACS to continue its valuable contribution to the ongoing ICT policy debate.

The powers of prognostication displayed by the ASC in 1996, and frequently since, are a valuable asset (I might have to speak to Tom quietly after breakfast to see if he has any leads for a special Saturday at the end of the year…).

I say to my friends in the ACS, it is important that we have a broad range of views and experience thrown into the melting pot so I encourage you all to continue to work together as we set about building a world class, internationally competitive ICT industry in Australia.