Published on the 14/05/2014 | Written by Newsdesk
Australia’s Treasurer Joe Hockey has handed down a budget intended to slice the deficit, but do little for the nation’s ability to compete in the emerging digital economy…
The Coalition’s first budget fixed on its overarching goal to reduce Australia’s deficit. While the main focus was on multiple spending reforms targeting health, education and social services – and a new levy on high income earners to help repay debt – the ICT sector also faced the axe.
Funding to the nation’s peak research organisation CSIRO has been reduced by $111 million over the next four years, and while National ICT Australia will continue to receive federal funds for the next two years it will then be cut loose and left to fend for itself, despite producing around a quarter of the nation’s ICT PhDs.
General research will be cut by 16.4 percent across forward estimates from 2014-15.
And, while the Government has trumpeted the establishment of the $484.2 million Entrepreneurs’ Infrastructure Programme, it’s a shuffling deckchairs exercise as $845 million has been saved by axing programmes including Commercialisation Australia, the Innovation Investment Fund, Industry Innovation Councils and Enterprise Connect.
Kevin Noonan, public sector research director for Ovum, noted that although there were some bright spots for IT – funding for a new supercomputer for the Bureau of Meteorology, small amounts of funding to support SMEs gaining access to government contracts, and the like – the “major theme is cutting costs out of agencies using an old style blunt instrument”.
He said that the budget lacked the vision that was on display in the recently released Commission of Audit, which had recommended the creation of a national chief digital officer and a greater e-government focus. Instead, the budget relies heavily on already discredited efficiency dividends to save money and greater use of outsourcing.
Whole of Government IT vision is already under attack with the Government CIO role recently being abandoned.
According to Noonan in Budget 2014: “Even the outsourcing agenda is going back to the Howard government.”
“Old blunt instruments that have been discredited are back again. It’s very disappointing.”
The funding sunset for NICTA is perhaps the most savage single blow to the long term international potential for Australia’s ICT sector. A spokesperson for the organisation welcomed the two further years of funding adding that “NICTA is discussing funding models with our stakeholders, future investors and partners that will support the unique world-class organisation that it has developed into – a model that is now being copied around the world.
“Information and communications technologies are among the most powerful accelerators of human advancement in the 21st century. Nearly all medical research breakthroughs – think of the bionic ear, pacemakers, new treatments for diseases and implants for chronic pain – involve fundamental research breakthroughs in ICT.”
Communications minister Malcolm Turnbull acknowledged the contribution that ICT and NICTA made in terms of delivering “wealth, jobs and benefit for Australia” but said it would “have to stand on its own feet from 2016”.
