WILLIAMS: It is wrong to suggest the Government's policy that Government agencies ensure minimum SME involvement for ICT contracts over $20 million is the "last remnant" of industry development policy associated with IT outsourcing. It is also wrong to suggest that this policy is being ignored by departments and agencies. These SME participation levels are mandatory under the Financial Management and Accountability Regulations 1997.
The Government's ICT industry development policy is aimed at delivering the economic fundamentals necessary to support business growth and to support the development of an Australian ICT industry that is internationally competitive.
The Australian economy remains healthy and the ICT sector is in a period of growth. Specific policies to support the development of Australia's ICT industry include Backing Australia's Ability, which is delivering nearly $3 billion in funding over five years to improve research, accelerate commercialisation of ideas, and to develop and retain Australian skills.
NICTA was provided with $129 million to support world-class research and research training to take Australia ability to create and exploit information and communications technology to a new level.
The BITS Incubator program supports start-up ICT firms. The Government is supporting private sector research and development, providing tax concessions of up to 175 percent in certain circumstances and has a range of programs to assist Australian firms.
These programs include R&D Start, the Innovation Access Program, the Innovation Investment Fund, and the Commercialising Emerging Technologies program. The Government has also improved funding for public sector research and provided for additional university places for ICT, maths, and science.
I also note that, SMEs are enjoying a significant percentage of Government IT outsourcing. For example, in 2002-03, SMEs received $168 million for services provided under the five original outsourcing cluster contracts, 40 percent of total expenditure. In addition, one of the original principal contractors, Ipex, is an SME which has benefited under these arrangements.
WILLIAMS: Does Labor support the Government's National Broadband Strategy as agreed with the majority of Labor State governments or does it propose to overturn this unprecedented agreement?
LUNDY: Labor is yet to announce our policies in this area but notes that the Howard Government keeps re-announcing their so-called "National Broadband Strategy" and has re-cycled money previously allocated to other telecommunications initiatives to fund it. Also, the only arguable substance in it is what the states have been doing for years, like aggregating demand, and the Howard Government, forever behind the eight-ball, now claims this to be a part of their so-called "National Broadband Strategy".
The fact is that the states are so far ahead in helping their communities prepare for the 21st century that the Howard Government was prepared to do just about anything to associate with state initiatives in this area.
LUNDY: On what basis does the Government claim there is currently "competitive neutrality" for open source projects competing against proprietary software giants for government work?
WILLIAMS: Competitive neutrality requires that -- where governments choose to provide services through market-based mechanisms that allow actual or potential competition from a private sector provider -- competition should be fair.
The concept of competitive neutrality is not relevant to consideration of the use of open source or proprietary software for government work. The decision regarding the use of open source or propriety software is a procurement matter.
The Commonwealth Procurement Guide-lines & Best Practice Guidance issued by the Minister for Finance and Administration states that "Value for Money is the core principle governing Commonwealth procurement". They also state that "Officials buying goods and services need to be satisfied that the best possible outcome has been achieved taking into account all relevant costs and benefits over the whole of the procurement cycle."
In the context of ICT procurement, agencies are therefore encouraged to consider possible solutions to their needs, including open source software, on their merits.
Agencies are increasingly aware of the need to frame their approaches to the market in terms that are as transparent as possible. In making strategic decisions about ICT procurement, individual agencies are subject to public scrutiny in a range of fora and aware of the need to be able to justify these decisions. The Australian Government Information Management Office (AGIMO) and its predecessor, the National Office for the Information Economy (NOIE) have been actively working with Government agencies to ensure they are well informed in making these decisions. This ensures that the Government has a position of informed neutrality rather than the "competitive neutrality" you appear to be confusing it with.
In our e-Government strategy, "Better Services, Better Government", announced in December 2002, the Government acknowledged that the main issue is to determine the cost, benefits and risks of using either open source or proprietary software in a given situation, and that it encourages trials of open source software within the framework of fit-for-purpose and value-for-money. A number of agencies including Centrelink and the Bureau of Meteorology have determined that open source meets this criteria for certain applications.
This article was first published in Technology & Business magazine.
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