Budget: No money for broadband

The Australian Information Industry Association (AIIA) was disappointed that last night's federal budget failed to allocate new funds to further the rollout of a world class high-speed broadband network.

James McAdam, AIIA general manager, strategy and policy services, told ZDNet Australia today the federal government had made its view clear -- it expects the private sector to fund the broadband rollout.

McAdam acknowledged existing funds -- such as the government's AU$600 million Broadband Connect program -- were good but claimed it was very disappointing that "no new money" was allocated to further the process.

"This is from a government that is charged with the task of developing a world class ICT and communications sector," he said. "There is a hole there as far as DCITA [Department of Communications, Information Technology and the Arts] is concerned."

McAdam said this was something that the minister -- Senator Helen Coonan -- had not addressed in her communications to the media.

Coonan's colleague, Treasurer Peter Costello, however, has defended the government's stance. This morning Costello repeated the government's position to Southern Cross Broadcasting that taxpayer dollars should not be spent on upgrading Australia's broadband network.

Despite not one cent being allocated to broadband infrastructure there was some good news for the ICT industry.

McAdam believes it was a typical budget. "There were some positives and some negatives."

He pointed to a number of initiatives in the AU$1.4 billion industry statement that would stimulate the ICT sector. The AIIA believe changes extended to the R&D tax concession will encourage multinational investment in the local ICT industry. This allows companies to claim for R&D projects in Australia regardless of where the intellectual property is held.

McAdam also praised the government's commitment to business skills for entrepreneurs. It's important that leaders not only have the technical skills, but the necessary business skills as well, he said.