Joyce has mixed views on NZICT advice

Communications Minister Steven Joyce has given a guarded welcome to dozens of recommendations set out by NZICT.

These are measures that the industry group believes should "set the tone for New Zealand's ICT priorities for the next five years".

NZICT chief executive Brett O'Riley described the Government's investment in ultrafast broadband as "a backdrop" to the opportunities it saw to improve the lifestyle of New Zealanders and create more business and exports, calling for more involvement in decision-making and incentives for the industry.

Mr Joyce says there are a number of recommendations the Government can act on and a number of issues on which it thinks differently. He put his own suggestion to NZICT, saying it should take the lead in encouraging small and medium-sized businesses to get prepared to take advantage of ultrafast broadband.

He believed they had responded positively. "Getting the ICT vendors actively involved in the telecommunications space is pretty important, so I am pleased they are."

Among NZICT's "top priorities" was an annual statement of ICT priorities from the Government that would provide clear direction for industry on priorities and where spending would occur.

NZICT wants to establish a panel of experts to provide advice to the Government on large ICT projects and priorities and a working group with Internal Affairs' Government Technology Services Group that would develop a programme for improving the efficiency of ICT in the public sector.

It called on the Government to create a "digital future master plan" next year, to help realise the potential of the digital economy and "demystify broadband".

Mr Joyce says the Government is looking at how best to get advice from the private sector, but is not ready to say "tick or no" to particular recommendations.

"Whether we need `annual plans' ... that is not really our style. We are running hard doing things. But certainly to get that dialogue going and to get input is pretty important."

Mr Joyce acknowledged there could be a trade-off between steps the Government was taking to achieve efficiencies through centralised purchasing, and innovation.

"There is always a risk once you go for scale that you will get some things in terms of cost and simplicity and you risk some of the potential for innovation, and we have got to be sure we get that balance right.

"We understand that. At the same time the Government has got to get better value for money for everything it does."

NZICT recommended the Government established a "streamlined" system of tax credits for research and development by accredited firms, tax incentives to encourage technology suppliers to use New Zealand as a test bed for ultrafast broadband, and matching loans or grants to encourage international investment in New Zealand research and development.

The Government scrapped tax breaks for research and development put in place by the last Labour government. Mr Joyce says its objection was the scheme was poorly targeted and open to abuse.

He says the Government expects to hear back by March from a working group it established to look at other options. He would pass on NZICT's suggestions to that group.

"What Cabinet will be looking for is something where the Crown encourages new activity rather than recategorising current investment and that will be [the working group's] challenge – to come up with something."

Extra Wishes

NZICT explores the potential for New Zealand to become a centre for excellence in broadband-enabled learning and related export opportunities.

The Government supports and invests in a joint Australian and New Zealand bid to host the Square Kilometre Array, an array of radio telescopes that could have spin-offs for the sector.

The public sector embraces technologies such as high-definition videoconferencing to reduce physical travel.

The Government extends incentives that are now offered to the film industry to computer games companies and other suppliers of digital content.

NZICT and the Government invite other political parties and organisations to contribute to "the vision of New Zealand as a leading ICT-enabled economy".

- © Fairfax NZ News