Government response to Report on Telecommunications

The Federal Government is to introduce two significant new policies for the pharmaceutical industry.

The Government's response to the Industry Commission's (now the Productivity Commission) Telecommunications Equipment, Systems and Services report was today released by the Minister for Communications, Information Technology and the Arts, Senator Richard Alston.

'The Government largely agrees with the recommendations in the report and indeed we have already taken action on most of the matters addressed,' Senator Alston said.

The recommendations relate primarily to the operations of the Government's Partnerships for Development program and the Telecommunications Carrier Industry Development Plan arrangements.

The report also makes recommendations relating to tariffs, research and development, investment attraction, venture capital and taxation.

“The December 1997 industry policy statement, Investing for Growth, highlighted the Government's commitment to promoting growth in technologically advanced industries, and established the Information Industries Action Agenda,” Senator Alston said.

The Government has brought forward the removal of tariffs on the majority of items covered under the World Trade Organisation Information Technology Agreement (ITA) to July 1998. In addition, the Government will establish a new Schedule 4 Item in the Customs Tariff to cover a range of inputs to manufacture of information industries equipment not included in the ITA.

“Industry will receive duty free access to key inputs, strengthening the competitive base of Australia's information industries”, Senator Alston said.

Other achievements already delivered include:

• establishment of Invest Australia, the Government's new national investment agency;
• provision of venture capital from the Innovation Investment Fund;
• a third round of funding under the R&D Start program;
• removal of tariffs on inputs to the manufacturing of information industry products;
• grants totalling $9 million to establish five software engineering quality centres; and
• the announcement of $28 million to support additional software engineering initiatives and a testing and conformance initiative.

Through the Partnerships for Development program, the Government will increase the transparency of industry development undertakings by companies, and promote more widely the achievements of member companies.

“By opening up the telecommunications carrier market to full competition the Governement has generated new opportunities in the industry, and will continue to support the sector with programs to promote innovation and investment”, Senator Alston said.

“The Government is also working with industry, through the Australian Information Economy Advisory Council, chaired by Mr Don Mercer, to generate sustained growth by building competitive advantage,” Senator Alston said.

“The Council provides the basis for a productive, cooperative relationship where Government can support the private sector as it further develops Australia's information industries.”

Details of the Government's response to each of the recommendations are attached.

Media contact:
Terry O'Connor, Minister's office 02 6277 7480

website: www.richardalston.dcita.gov.au
63/99
12 May 1999