$40m to boost IT growth

By ADAM GIFFORD

The Government will spend more than $40 million over the next four years on a 10-year project to have 100 high-tech companies turning over $100 million a year.

Unveiling the official response to the June report of the ICT Taskforce which came up with the target, Information Technology and Communications Minister Paul Swain said the Government wanted to work in partnership with the ICT sector to support its growth ambitions.

While some of the taskforce recommendations were addressed by yesterday's package, other key elements are still being worked on.

Swain said a working group of industry and Government representatives was being set up to look at issues of Government ICT procurement.

The taskforce observed that while the Government accounted for a third of IT spending, the public sector had a poor record of buying locally made technology.

Work is also continuing on the taskforce's recommendations on tax and regulatory issues.

Swain said the Business Law Reform Bill, due to be passed by April 2004, would improve investment opportunities in the ICT sector.

The taskforce's work is being continued by the Higrowth Project, a charitable trust set up by taskforce members with a five-member board headed by SolNet founder Murray McNae and a 30-member advisory council.

Swain said the HiGrowth project would receive $1.5 million over four years. It was expected to be self-funding through industry donations after that.

Other investments spread over the next four years include:

* $11.55 million to a tertiary sector project, Enterprise training for emerging industries.

* $10 million for the entrepreneurship and knowledge transfer initiative, which is aimed at graduates.

* $8 million for projects which support the technology curriculum in secondary schools.

* $5.6 million for FutureInTech, a national ICT awareness programme for secondary school students.