Tax

• The Government has clearly signalled that proposals for a land tax, a capital gains tax, and a risk-free return method will not go ahead. 
• What is on the agenda: an increase in GST (no more than 15%), lower personal tax rates and changes to the way property is taxed - with more details to come in the Budget. 
• While there was no overall reform of Working for Families announced, there was an indication that there will be changes to prevent high income earners from abusing the system.
• One glaring omission was any discussion on the Australian Henry tax review or on compulsory superannuation.  Any moves by the Australian Government to lower their company tax rate would need to be met by the same change on this side of the Tasman.   We would expect the Government to be ready for such an eventuality if it arises this year.

Better Public Services

• This year the Government will continue to drive savings in the public sector, demand stronger performance from government agencies, and lift the quality of public services.
• They began that process last year by capping core government administration and by conducting a line-by-line review of expenditure as part of the 2009 Budget. That review identified a total of more than $2 billion in spending over four years that was redirected to frontline services.
• That was not a one-off exercise. The PM indicated that the pressure on government departments to lift their game will be constant. Most agencies will see no additional funding for several years. They will therefore need to make enduring and significant changes to the way they operate, including reorganising their back office administrative functions, making better use of technology, exploring innovative options for delivering services, and sharing support services with other government agencies.

Innovation

• We are pleased to see a strong focus on increasing investment and focus on science and innovation, in line with our Near Future Digital Priorities, and we look forward to seeing details as soon as possible.

Regulatory Reform

• The Prime Minister’s remarks on regulation highlighted the work programme of reviewing existing regulations to identify and improve or remove those that are unnecessary or ineffective, but there was no significant detail announced e.g. around a Regulatory Responsibility Bill or the establishment of a Productivity Commission.

Emissions trading

• Comments on emissions trading stressed the need for a balance between environmental and economic concerns.  We also see technology development opportunities in this area.

Access to natural resources

• The intention to better utilise New Zealand’s significant petroleum and mineral resources was outlined. 

Labour Law

• The Government will look at whether labour laws are imposing excessive costs on business and hindering job creation.
•  The PM indicated that legislation to improve  the Holidays Act will be introduced later in the year and that problems with personal grievances under the Employment Relations Act will be investigated.

Education and skills

• The statement included a focus on young people and pre-employment education and training and greater opportunities to learn trades and practical skills including technology in schools.  We will be working with the Ministry of Education on this development.
• In tertiary education, the statement focused on getting more value from the dollar and more relevance to the workforce.

Trade

• The government wants to further progress the Single Economic Market with Australia and progress the many trade deals currently under negotiation.

NZICT Group’s advocacy will be focused on getting good and speedy execution of the stated plan.  Thanks to Business NZ for their assistance in the review of the PM’s address.

Richard King stood down from the Board late last year, while David Stone will remain on the Board as an independent member in his role as Telecommunications Carriers’ Forum CEO.

NZICT Chair Geoff Lawrie said that it was gratifying to have such a strong interest from a range of high caliber candidates for a position on the Board.

“I offer the Board’s congratulations and welcome to both Chris and Mike, and believe they will do an excellent job of representing the interests of members,” said Lawrie.

Chris Quin, CEO Gen-i Australasia, said; “I’m absolutely delighted to be joining the NZICT Board and hope to bring a fresh perspective on how we can enhance the provision of ICT in New Zealand.

“Gen-i’s partnerships with our 3,000 clients across New Zealand and Australia give me strong insights into how the ICT sector can help businesses achieve their goals. I am committed to the success of ICT in New Zealand and the role it plays as a facilitator of business and national economic success.”

As a member of the NZICT Board, Dell NZ Country Manager Mike Hill said he will aim to promote issues such as ICT in schools and ICT’s role in protecting the environment.

“I look forward to working and collaborating with the other Board members who I hugely respect and being part of building the future of ICT in New Zealand,” said Hill.

NZICT board members include:

• Independent Chair Geoff Lawrie - Cisco
• Andrew Hunt - Kinetics Group
• Bennett Medary - Simpl
• Chris Quin - Gen-i
• Daryl French - IBM Asia Pacific
• David Stone -Telecommunication Carriers’ Forum
• Kevin Ackhurst - Microsoft
• Mike Hill - Dell
• Pat Rossiter - Hyperion Management Services
• Rhoda Holmes - Raghnall
• Tony Skelton - ACE Training and Development

View Board Profiles

Watch the TVNZ video (3:23 minutes)

Read the full TVNZ article

US film-makers spent $307 million in New Zealand creating blockbuster 3-D film Avatar, but $44.7m of the bill has been picked up by Kiwi taxpayers through a government grant.

The total production cost of the film has not been disclosed, with estimates ranging as high as US$500m (NZ$702.6m).

About 60 per cent of the film is comprised of visual effects, created by Wellington’s Weta Digital.

Read the full article on Stuff.co.nz

NZICT’s comments come as a reaction to recent criticism of the multimillion dollar grant for blockbuster film Avatar under the Large Budget Screen Production Grant (LBSPG).

 NZICT CEO Brett O’Riley believes that critics of the grant are displaying short-sightedness.

“The scheme not only supports companies like Weta Digital, but spin off companies like Massive Software, Green Button and The Funny Farm which are involved in software development, game development and on-line content.

“We need to look forward and support the digital sector, which will in turn supply jobs and gains for our economy,” he said.

O’Riley argues that the scheme should be extended rather than limited.

“We need to expand the LBSPG to include those working on short movies, online games and mobile media.

 “These industries are creating intellectual property for New Zealand on an unprecedented scale,” he said.

New Zealand’s burgeoning digital sector is attracting not only talented Kiwis, but specialists from all over the world, making New Zealand an attractive place for companies to invest.

O’Riley notes that we also need to ensure that proposed changes to the technology curriculum in secondary schools maintains and inspires new talent to take advantage of the digital industry.

The ICT Research Forum (the Forum) will focus on bringing together industry, academia and government research communities to conduct research and make recommendations on the development and growth of the local software economy. Research in ICT will assist with job production and drive economic growth in New Zealand.

The Forum will provide an opportunity for IISEIE, NZICT Group members and the broader research community to undertake research into economic activity generated through the creation and development of information and communication technology (ICT) industries with an emphasis on local software economies.

Using this research, Forum members will recommend best industry practices, including policy and programmes, in an effort to support the sustainable growth of New Zealand’s local software and digital economy.

IISEIE CEO Malcolm Fraser said that the forum will produce outcomes that will lead to growth within the local economy by creating a vibrant and sustainable software industry.

“Based on the research and benchmarking outputs, the forum will recommend various programmess that are designed to identify and support exporting opportunities as well as addressing issues in the local market such as skilled training, demand generation and collaboration across all relevant parties in the ICT industry.”

NZICT CEO Brett O’Riley noted that there is a great need for joint research between the ICT industry, Government and academia.

“With the formation of the Forum and a high level of collaboration across a number of parties, New Zealand will benefit from knowing where we are and where we need to be as we enter the decade of digital technology.”

Anyone interested or involved in ICT research is welcome to attend the official launch of the New Zealand ICT Research Forum on January 28th at Microsoft’s conference facilities in Auckland hosted by the Auckland ICT. For more information on the event visit the Auckland ICT website. 

A Wellington event will be held mid February.

For more information on the ICT Research Forum or ISSEIE visit www.iiseie.org

Formed in 2009, ISSEIE is a non-partisan, not-for-profit international organization whose members comprise of researchers, software companies, and industry practitioners from the global software sector. The organization is committed to building local software economies through applied research and best practices that both informs and aligns industry based programs.

Formed in December 2008, the NZICT Group is an industry association made up of over 80 leading New Zealand ICT companies. It was founded to provide a single unified voice to address issues facing the industry as a whole.

For comment, please contact:

Malcolm Fraser

Chief Executive Officer, IISEIE

Cell (Asia Pacific): +64 21 663 617

www.iiseie.org

or          

 Paul Clearwater 

Communications Executive NZICT

+64 27 2820016

With over 60 national ICT industry associations and members representing more than 90 per cent of the world, WITSA is the leading voice on the global ICT industry.

 NZICT CEO Brett O’Riley said that as a member, NZICT will gain insight into the trends, policies and ICT advances worldwide.

“WITSA allows access to other ICT representative groups, meaning that NZICT will be able to identify and discuss industry issues with a global perspective, while still retaining a local focus”.

O’Riley points out that it is important for the New Zealand ICT industry to align itself with worldwide trends as the digital economy develops.

“The burgeoning digital trade and export market is creating a lot of opportunities for New Zealanders. International networking prospects through WITSA should be embraced and capitalised upon,” he said.

WITSA’s main focuses revolve around advocating international public policies that advance the industry’s growth and development.

Other focuses of WITSA are:

• Facilitating international trade and investment in ICT products and services through our global network of contacts;
• Promoting industry cooperation and strengthening our national associations through the sharing of knowledge, experience, and critical information;
• Publishing global ICT research to shape the industry;
• Hosting WITSA’s signature events - World Congress on Information Technology (WCIT) and Global Public Policy Summit (GPPS); and
• Organising Global ICT Excellence Awards to recognize outstanding ICT users.

About NZICT:

Formed in December 2008, the NZICT Group is an industry association made up of over 80 leading New Zealand ICT companies. It was founded to provide a single unified voice to address issues facing the industry as a whole.

For further information please contact:

NZICT Communications Executive, Paul Clearwater

027 282 0016, paul.clearwater@ict.org.nz

www.ict.org.nz

Industry umbrella group NZICT has turned criticism of its Near Future Digital Priorities report (Computerworld, December 7, 2009) to good account, identifying a need for more research, particularly on the structure of the local ICT business and opportunities in the market.

Read the full Computerworld Article

To view the full article visit the NZ Herald website:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10619121