Is Victoria losing IT's face?

The Victorian Opposition has seized on Nokia's decision to shut down its R&D facilities in Melbourne, claiming it's a body blow which can be blamed on the state government's lack of IT credentials.

Regarded as one of Australia's leading information technology states, Victoria is now facing an IT downturn, according to the Shadow Minister for IT&C and Multimedia, Victor Perton.

"We're constantly getting reports of companies giving it away and going interstate or overseas," he said.

Perton believes the Victorian Labor Government is to blame for the recent shutdown of Nokia's broadband research centre in Melbourne, and the subsequent loss of 30 research and development (R&D) jobs.

"The Nokia announcement is strong evidence of that, it may have been only 30 jobs, but they are research jobs," Perton said.

"Labor is viewed in industry circles as headless chickens," he said.

"Nokia is the world's leading mobile telecommunications developer. To lose Nokia is a disgrace that the Bracks government will no doubt want to distance itself from, but it cannot."

"Melbourne has as much fibre in the ground as anywhere else," he said.

The Bracks Labor government says Nokia's decision had nothing to do with government policy.

"Nokia's decision is based on their own commercial considerations and global consolidation requirements," a spokesperson said in an email reply to questions.

"Victoria is "leading the way nationally" with major centres for communications technology industry and R&D operations, such as a 700 strong workforce at NEC operating out of Victoria."

NEC recently announced a AU$70 million investment on 3G mobile research and development to be carried out in Melbourne, creating 150 new jobs.

The government also pointed to the recent decision by Hewlett-Packard to set up its Asia Pacific Consulting Centre of Expertise in Melbourne, creating 250 jobs.

Perton however, claims the government has not followed through with post-election promises to expand the availability of broadband across the state and drive down prices using the Victorian broadband network.

"16 months down the track and not a thing has been done," Perton said.

He claims Victoria has lost major investments to other states, citing the recent relocation of a large animation house, Animation Works, to Perth.

The Liberal politician says Animation Works' relocation is "because of the efforts of the Western Australian Government to woo them and support their needs."

Nokia was unavailable for comment.

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