Lundy accuses Alston of abandoning SMEs

Senator Kate Lundy has accused the Howard government of leaving Australian small and medium-sized IT enterprises out in the cold in favour of the big end of town.

The Shadow Minister for Information Technology said that Senator Alston has given up on his commitment to find ways to increase SME participation in government IT contracts.

In April last year, Senator Alston announced that he would develop an IT outsourcing industry development framework to encourage growth of Australia's information and communications technology sector.

Senator Lundy said it became apparent that the government had dropped its plan to pursue the framework during Senate Estimates hearings late in February. She said the government has instead referred the matter to an ICT industry development committee that is yet to be formed.

In the meantime, said Lundy, the government has chosen to deal with industry development issues within the tender process for each contract.

"It's not account able and no-one knows what to expect," said Lundy. "I believe everyone should know".

If the framework is abandoned, Lundy believes that the Federal Government will be giving large enterprises a great advantage over SMEs.

While large IT goods and services suppliers can manoeuvre to meet the government tenders quickly, SMEs need more time to structure their companies towards the contracts.

She also said that without guidelines to dictate enterprise participation in government tenders, SMEs are left in a vulnerable position.

"It's no good to be lined-up against the wall by a multinational and told what their price will be," said Lundy.

Senator Alston's office was contacted for comment in response to Senator Lundy's claims, but failed to return ZDNet Australia's calls by press time.

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Talkback 2 comments

    Good on you Kate!! Get the gov ...Dwight Walker -- 14/03/02

    Good on you Kate!! Get the government to get its end of the tendering process clear. Get them to spec it out. Then we can come at the jobs clearly. I refuse to start a contract unless it is spec'ed properly - too much at risk. We'll give the large companies a run for their money. We are much more agile than they are - less bureaucracy to plough through. The benefit of dealing with smaller mobile companies is you get a much better mix-and-match than larger companies which have to hire in staff and train them. We just coordinate a group of smaller ones and then re-group after the contract - the power of the Web!! Not top heavy!

    As a small web developer, I ve ...Anonymous -- 14/03/02

    As a small web developer, I very much resent the way in which the Howard government stomped on small but legitimate independent contractors. Part of the fallout here is that many legitimate contractors left contracting for "secure" employment with the big end of IT town - this increases the clout of the larger IT companies and just makes it harder for those of us who are left. As for spelling out the tender details and establishing a level playing field, well I can point to several large companies who bid aggressively for IT work and then fail to meet the commitments. What happens then ? Not much because the managers who made and pushed through the outsourcing contracts would be too embarassed so they just "justify" and pay a bit more money somewhere else in these contracts to get it fixed.

    The government encouraging small business ? Bah humbug.

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