Leading Queensland into the information age

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1 Leading Queensland into the information age Queensland Government ICT Progress Report 2002 HIGHLIGHTS

2 Contents Foreword 1 Government spending and collaboration 2 Developing Queensland s ICT skills 3 Supporting ICT industry development 5 Delivering effective e-government 7 Providing telecommunications infrastructure 9 ICT in Queensland s regions 11 Conclusion 12

3 Foreword Information and communication technologies (ICT) are of increasing importance to Queensland s social and economic future. Computers, communication technologies and information services not only impact on our culture and society, but also on our status in the global information economy. The Queensland Government is committed to harnessing the potential of ICT for the benefit of all Queenslanders. This Report highlights significant initiatives and achievements in ICT education and training, industry development, e-government and the establishment of telecommunications infrastructure across the State. The range of initiatives reflects the unique challenges posed by the Queensland environment, demography and economic infrastructure. These initiatives also highlight the leadership role of the Queensland Government in facilitating industry growth and the adoption of ICT by Queensland communities. The Report demonstrates the shared commitment by State Government departments and agencies to build a better future for Queenslanders through a strategic approach to the application of ICT and management of its ICT investment. It highlights key priorities such as ensuring that: regional Queensland, remote communities and disadvantaged groups participate in and benefit from the information economy; our ICT industry is relevant and growing; and the State Government is taking advantage of available and future technologies to deliver its services effectively and efficiently. The next page shows Queensland Government support for the ICT industry through collaborative arrangements and procurement processes. The following pages highlight Queensland s position, progress and the challenges ahead in the areas of: developing ICT skills; supporting ICT industry development; delivering effective e-government; and providing telecommunications infrastructure. PAUL LUCAS MP Minister for Innovation and Information Economy 1

4 Government spending and collaboration $M The Queensland Government is the greatest single spender in the ICT sector in Queensland, and as such plays an important role in the growth of the ICT industry. Queensland Government spending on IT has shown a compound growth rate of 16% over the last decade. Table 1 below shows the upward trend in Government spending on IT products and services from 1993 to Government spending on Information Technology products and services for is $520 million 1. Estimated Government spending on telecommunications for is around $150 million 2. Table 1: Trend in Government IT Spending 1993 to 2002 ($M) the Education and Training Reforms for the Future package which has as one of its key objectives improvement in the use of ICT in the schooling and vocational education systems. the Government Online Learning Delivery project which provides a whole-of-government approach to learning for employees and a wide range of relevant, just-in-time training programs for Government employees. the SmartNet project which integrated the procurement arrangements for the EdNet Phase 2 project and the Improved Telecommunications in Northern Queensland Project. the Integrated Justice Information System which focuses on collaborative electronic information sharing and exchange across relevant agencies. the establishment of integrated payment mechanisms to streamline government financial transactions, including online and telephone payments, and enhanced receipting mechanisms for counter payments Collaboration within Government and with industry is crucial to the ongoing growth of our ICT industry and the development of the ICT skills needed by Queenslanders to function effectively in the information economy. The Queensland Government is displaying a commitment to cross-agency and industry collaboration through a wide range of prominent strategic initiatives and ICT activities, including: strategic collaboration with industry such as: - supporting industry growth and productivity in regional Queensland; - encouraging and supporting Small to Medium Enterprises (SMEs) to become investor-ready; - providing assistance to raise venture capital; and - making greater use of resources and expertise in areas such as procurement and online service delivery (Smart Services website) across agencies. 1 Data sourced from Marketview, State Government IT Survey Report 2002 conducted each year by Industrial Market Research (IMR) Qld. 2 2 Marketview State Government Telecommunications Survey Report: , p12.

5 Developing Queensland s ICT skills Queensland Government ICT Progress Report 2002 Highlights The availability of ICT skills locally is critical to promoting the growth of ICT industries in Queensland, and enabling business generally to become more efficient through the use and application of ICT. Confidence in the use of ICT applications in the community is important to enable all Queenslanders to take full advantage of the opportunities available in the information economy. Globally, many progressive governments have recognised that citizens must be sufficiently skilled in ICT if they are to function effectively in the knowledge economy. As UNESCO stated in a recent report being able to use ICT is viewed as critical to keeping pace with techno-driven development 3. The May 2002 Queensland Household Survey of Computer and Internet Usage 4 shows that the level of computer and Internet skills of the Queensland population improved between 2001 and Tables 2 and 3 below show selfidentified computer skills and Internet skill levels of adults who considered they had very good, good or fair computer skills. Table 2: Computer Skill Level of Population* with Internet Access Percentage of Adult Population* Fair Good Table 3: Internet Skill Level of Population* with Internet Access Percentage of Adult Population* Fair Good Very good Very good Progress so far Launched the Education and Training Reforms for the Future package in March 2002, with a key objective of improving the use of information and communication technology in the schooling and vocational education systems. Expanded the Virtual Schooling Service (VSS), which provides students with online access to courses of study not easily available to them, into 63 secondary schools across the state. Funded Enabling Queensland to develop the Connecting Generation 3 (CG3) Strategy which encourages senior Queenslanders to become computer literate. Provided funding to develop ICT skills for fifty-one organizations in rural, regional and remote communities in Queensland with populations of less than 10,000 people through rounds one and two of the Community Skills Development Program in ICT (CSDP). Provided funding to industry, educational and training institutions and local authorities to encourage Queenslanders to develop appropriate skills for employment in the ICT industry through rounds one and two of the Information and Communication Technology Skills, Training and Role Models (i-star) program. *Queensland population of adults (over 18) as at time of survey 3 UNESCO Observatory on the Information Society In 2001 the Department of Innovation and Information Economy commissioned the Queensland Office of Economic and Statistical Research to conduct the Queensland Government s first-ever survey of household computer and Internet use in the State. The survey was repeated in

6 Developing Queensland s ICT skills (continued) Challenges Continuing to address the gender imbalance in ICT education, training and ICT employment. Encouraging people to gain ICT skills to re-enter the workforce. Ensuring that all Queenslanders have the opportunity to develop ICT skills by targeting remote and/or disadvantaged communities, mature-age workers, the over 55s, people with disabilities and Indigenous people. Increasing the use of technologies in the schooling and vocational education systems. Identifying strategies to overcome inequities in computer and Internet access, particularly for those Queenslanders in lower socio-economic groups. Supporting the development of ICT skills throughout Queensland For Queenslanders to take full advantage of the opportunities offered by the information age, it is essential that individuals, communities and organisations develop information and communication technology (ICT) skills. The Queensland Government provides funding for this purpose under the ICT Skills, Training and Role Models (i-star) program and the Community Skills Development Program (CSDP). i-star provides funding for industry, local authorities, education and training organisations to run projects that focus on building ICT skills and promoting ICT careers. For example, the Charleville and District Community Support Association received funding of $11,000 for their Re-boot Outback project. Participants received training and mentoring in repairing computers and installing appropriate and special needs software and hardware. These rebuilt computers were then distributed to disabled and elderly community members in the Charleville region. CSDP helps community organisations in regional and rural areas with populations of 10,000 or less improve their ICT skills training. For example, the Innisfail and District Historical Society received funding of almost $15,000 to train members in website production and database design. This training has enabled them to develop a website and an artefacts database for the Innisfail Museum, and in developing a promotional CD-ROM featuring the history of the Innisfail area. In total, eighty-six Queensland community groups, educational and training organisations and industry groups have received around $885,000 in the first two rounds of CSDP and i-star funding. 4

7 Supporting ICT industry development Queensland Government ICT Progress Report 2002 Highlights ICT industries are important to Queensland in terms of their direct contribution to jobs, exports and their significant contribution to developing the information economy throughout the State. The Queensland Government s vision is for an ICT industry that provides high value employment opportunities and maximises its investment potential. Australian Bureau of Statistics (ABS) estimates indicate that, at the end of June , Australia had 22,475 ICT specialist businesses employing 238,521 people. Australian ICT industry revenues were approximately $77.5 billion in In that same year, Queensland accounted for around 13.1% of total Australian ICT businesses. The Queensland ICT Industry Profile shows Queensland had 1,728 ICT firms, employing around 40,500 people. Queensland s ICT sector is dominated by small-tomedium-sized firms with 66% reporting sales of $I million or less in Twenty-eight per cent had sales between $I million and $10 million, with only 6% over $10 million. In the same year, total sales in the Queensland ICT sector were estimated at $10.1 billion including $775 million in interstate and $584 million in overseas exports. Major destinations include the Asia/Pacific region ($187 million), USA ($131 million) and UK and Europe ($42 million). Progress so far Assisted Queensland s ICT sector, particularly small-tomedium-sized firms, in gaining access to Queensland Government procurement contracts through the Partners in Technology program, which provides access to agencies proposed significant ICT purchases (agency ICT forward procurement plans). Extended the successful Funding ICT Growth program (further described on the next page) for another four years (until 2006) with a commitment of a further $715,000 to help develop intensive investor readiness in small ICT companies. Facilitating the establishment and sponsorship of investor groups in Cairns, Townsville, Mackay, Wide Bay, Brisbane, and Toowoomba through the EnterpriseAngels project. ABS statistics show a decline in employment in both the ICT industry and ICT occupations across all industries in Queensland from 2000 to 2002 (Table 4 below) 6. This decline in the Queensland ICT sector is reflective of the international stagnation in ICT apparent throughout General growth has been slow and confined to specific areas, e.g. e-security. Table 4: Queensland ICT Labour Force, Industry and Occupations, 's of persons employed Qld ICT Occupations Qld ICT Industry Feb Qtr 2000 May Qtr 2000 Aug Qtr 2000 Nov Qtr 2000 Feb Qtr 2001 May Qtr 2001 Aug Qtr 2001 Nov Qtr 2001 Feb Qtr ABS Cat. No 8126, Information Technology, Australia, Queensland ICT occupations as defined by the ABS include Information Technology Managers, Electrical and Electronic Engineers, Computing Professionals, Electronic Engineering Associate Professionals, Computing Support Technicians, Electronic and Office Equipment Tradespersons, Communications Tradespersons and Desktop Publishing Operators. Queensland ICT industry classifications identified by ABS include Electronic Equipment Manufacturing, Telecommunication Services and Computer Services. 5

8 Supporting ICT industry development (continued) Challenges Supporting the ICT industry to help it establish a presence in new and emerging markets. Encouraging increased investment in the Queensland ICT industry, particularly in research and development, and in embryonic ICT businesses. Improving Government purchasing policy, including the identification and removal of obstacles to more effective procurement practices that will benefit both Government and the ICT industry. Encouraging the development of the ICT industry at a regional level. Fostering an awareness of the enabling capacity of ICT for non-ict industries. Funding ICT growth For Queensland businesses seeking to compete in the global marketplace, access to venture capital and export markets is crucial. The Funding ICT Growth (FIG) initiative puts ICT firms through a series of intensive workshops to help them create a business plan that will help to attract professional capital-raising. Under the program, participants take part in the workshops which cover topics such as team management, market research, ICT marketing strategies, exporting ICT products, business structure, taxation and financial management. Participants also become part of a business network that facilitates strategic alliances, joint venture partnerships and contacts for professional services. The program has received an additional $715,000 in the State Budget to continue to improve the number of Queensland ICT firms that are investor-ready. To date, it has helped 56 Queensland companies secure investment capital, enter export markets and create 646 new jobs. Previous participants have also increased their domestic revenue by $65.1million and their export revenue by $61.6million. Since the FIG program we have become number three in our industry and are now exporting to twelve countries. This demonstrates that the entrepreneurial process taught really works. Greg Robinson, CEO, Rx Works. 6

9 Delivering effective e-government Queensland Government ICT Progress Report 2002 Highlights Effective e-government, i.e. transforming government service delivery through the strategic application of online technologies, has been recognised globally as an important driver of economic growth. e-government has the potential to: achieve better delivery of government services; improve interactions with government clients; deliver more efficient government management; achieve savings through streamlining and enhancing business processes; and The percentage of adults purchasing online decreased slightly from 2001 except for those spending $1,000 or more. Many reasons were given for this decrease including a reluctance to provide credit card details online or uncertainty of receiving goods ordered. Government s role is to increase confidence (through privacy and security regulation) across the business and general communities and demonstrate the commercial advantages of e-commerce in potential cost reduction, increased access and competitiveness. allow citizens to participate more directly in democratic processes (e-democracy). The Queensland Government, recognizing these potential benefits, has adopted a leadership role in actively managing and promoting a range of e-government initiatives. These initiatives include the Access Queensland project, which is establishing more efficient and streamlined service delivery channels based on the effective and strategic use of ICT, and achieving savings through streamlining supporting back-office processes. The OECD notes that the adoption of e-government will, in turn, encourage the adoption of e-commerce across business and the community, which contributes to economic growth 7. The Queensland Government is continuing its efforts to enhance the capacity and enthusiasm of the community to access and use ICT, in order to maximise the benefits associated with greater convenience and responsiveness that are provided by e-commerce. An indicator of the receptiveness of business and the community to e-services and the uptake of e-commerce is the amount spent online by Queenslanders as illustrated in Table 5 below. Table 5: Amount Spent Online Percentage of Adults who had purchased online $100 or less $101 $500 $500 $ Source: May 2002 Queensland Household Survey of Computer and Internet Usage $1000 or more 7 OECD 2001 The New Economy: Beyond the Hype Final Report on the OECD Project 7

10 Delivering effective e-government (continued) Progress so far Developed the Integrated Justice Information System which focuses on collaborative electronic information sharing and exchange across Queensland Police and the Departments of Justice and Attorney-General; Corrective Services; Families; and the Premier and Cabinet. Published the Better Practice Guide for E-Business Environments which highlights legislative and regulatory requirements, appropriate policies and procedures, potential security issues and systems of authentication and non-repudiation. Challenges Ensuring convenient access to Government information and services. Delivering services efficiently and flexibly using a variety of means including online technology. Employing online technologies to allow Queenslanders to participate more readily in the democratic process. Developed the e-tender system for electronic tendering of contracts within the building industry for both building contractors and building related consultants. Further developed Telehealth to provide key services to regional communities, including ophthalmology, psychiatry, renal, pre- and post-operative services, neo-natal and education and support programs. Developed e-planroom to provide access to drawings and documentation of Government owned buildings via the Internet. Made camping permits and vehicle and vessel registration renewals available over the Internet, through an Integrated Contact Centre and via selected service counters of the Environmental Protection Agency, Queensland Transport and Natural Resources and Mines. Established integrated payment mechanisms to streamline government financial transactions, including online and telephone payments, and enhanced receipting mechanisms for counter payments. Making Government services more accessible In the information age, it is increasingly important to have efficient access to Government services and information. The Queensland Government is developing an anywhere, anytime service delivery framework to allow Queenslanders to access generic Government services and information via a range of channels such as the Internet, telephone and face-to-face. These channels will enable customers of Government to conduct multiple transactions through a single point of contact. Already, Queenslanders can book selected camping permits and renew their vehicle and vessel registration online. Around 400 services have been identified for inclusion in the new service delivery model over the next 5 years. For example, a farmer west of Longreach could access information relating to soil salinity and book an inspection from local inspectors in one interaction. An Indigenous artist in Cape York, through one point-ofcontact and one interaction, could register her business, access her business start up kit and enrol for an upcoming business training course. 8

11 Providing telecommunications infrastructure Queensland Government ICT Progress Report 2002 Highlights Reliable telecommunications infrastructure is critical for communities to be able to effectively participate in the information economy. The Queensland Government is committed to facilitating the delivery of better and more equitable access to telecommunications services for Queensland communities. As the majority owner of Telstra (the major carrier), the regulator and the major distributor of grants and subsidies, the Commonwealth Government remains the most significant influence on telecommunications in Australia. After ten years of competition, 99% of revenue 8 was, until recently, concentrated in only eight firms, with Telstra earning 76% of this revenue. The OECD points out that although telecommunications monopolies have almost disappeared in OECD countries, if incumbent firms are still dominant... (this) contributes to keeping costs high 9. Queensland, Australia s most decentralised state, still confronts several major issues relating to the provision of telecommunications services. Mobile telephone coverage remains inadequate in western areas. Along some western highways coverage is possible for only 50% of a journey e.g. a motorist travelling from Townsville to Mt Isa will have coverage for only half of the journey. Even after intended improvements to mobile telephone coverage, Queensland will have only 76% continuous CDMA coverage of its highways, compared with 82% in New South Wales and 96% in Victoria. Progress so far Combined the Ednet Phase 2 and the Improving Telecommunications in North Queensland procurement process in the SmartNet tender to increase leveraging ability. Obtained National Communications Funds for telecommunications infrastructure to cover 30 remote and rural communities in Western and South Western Queensland through National Communications Fund (Outbacknet@qld). Developed the draft Brisbane and South East Queensland Telecommunications Strategy and completed the consultation phase. Worked with the Commonwealth Government to identify where mobile telephone coverage needs to be improved and advocated for coverage of major roads and highways. The Commonwealth Government s response to the Telecommunications Service Inquiry resulted in mobile telephone coverage to all but ten settlements with population over 200 (1996 Census). A Queensland Government tender will seek the provision of mobile services to these ten remaining settlements. Provided a range of training for call centre and cabling qualifications and competencies through the Telecommunications Training Package. Cost and value for money remain issues for the provision of data services. While there may be adequate satellite capacity across the State and fibre capacity from Brisbane to Cairns, the cost of services renders this physical infrastructure of limited practical advantage to many users. The Queensland Government and local governments are increasingly considering cooperative approaches, which combine procurement activities. The SmartNet project, which is the integration of the procurement arrangements for the EdNet Phase 2 project and the Improved Telecommunications in North Queensland project, is one such example. As a result of the Commonwealth Government s Untimed Local Calls in Extended Zones, Queenslanders now have local calls to a much larger geographic area. 8 Based on Australian Communications Authority Eligible Revenue Assessment OECD 2001 The New Economy: Beyond the Hype Final Report on the OECD Growth Project 9

12 Providing telecommunications infrastructure (continued) Challenges Ensuring that the Commonwealth Government fulfils its responsibilities by funding telecommunications improvements in Queensland: - The Commonwealth Government has only allocated $200 million of the $30 billion windfall gain from the half sale of Telstra to Queensland. This represents 0.7% of the total proceeds of the sale. Given the size and distributed population of the State, more funding is needed to ensure Queenslanders have the services they need. Mobile telephone coverage remains inadequate in western areas, particularly along highways. The Government will continue in its efforts to improve the current level of 76% continuous CDMA coverage of its highways. Ensuring that Queenslanders access to the Internet is cost-effective and is not hindered by the affordability of bandwidth. Encouraging competition and leveraging telecommunications buying power by identifying further means of aggregating demand for Government telecommunication services. Telecommunications services for Queensland communities Living in the most decentralised state in mainland Australia, Queensland s regional and remote communities need access to reliable telecommunications infrastructure. The Queensland Government is committed to facilitating the delivery of better and more equitable access to telecommunications services for Queensland communities. Importantly our commitment to telecommunication infrastructure extends well beyond the State s South East corner to parts of Queensland where access to affordable phone and broadband services is crucial to community and business development. In 2001 the Queensland Government facilitated the establishment of the Reef Network to provide a competitive broadband backbone between Brisbane and Cairns, resulting in up to 60% savings in data charges between locations along this important communications route. The SmartNet initiative is another example of a telecommunications infrastructure initiative which will result in new jobs, greater training opportunities and more affordable telecommunication services. SmartNet is supported by 22 Government agencies and it is estimated that the potential total purchases from the SmartNet procurement arrangements are worth $20 million each year. SmartNet will also expand broadband infrastructure particularly in remote North Queensland areas. This will improve service delivery in a number of areas including police, health, families, justice, corrective services and state development. SmartNet will have a major impact on schools with students and teachers gaining greater connections to the rest of Australia and the world. Importantly, it will provide jobs and skills training for many local Indigenous communities with the nomination of the Balkanu Cape York Development Corporation as the preferred sub-contactor for the installation and maintenance of the SmartNet initiative in North Queensland. 10

13 ICT in Queensland s regions The Queensland Government has numerous successful ICT-related initiatives designed to enhance the learning and lifestyle of regional Queenslanders and stimulate business and industry. These include: The School Local Area Networks (LANS) Project has been completed with all schools receiving starter kits and Internet/intranet connectivity completed to 30% of school buildings. The Virtual Schooling Service, which provides students with online access to courses of study not easily available to them, expanded its programs into 63 secondary schools across the State; A model for the delivery of Government services such as training and employment opportunities through QGAP offices to Indigenous Queenslanders has been developed in partnership with the Yarrabah Aboriginal Council; The Government has supported the establishment of a technology incubator on the Sunshine Coast in February 2002 in addition to the existing incubators in Brisbane and the Gold Coast; Regional Tourism Net, a system that allows regional tourist organisations to create and manage their own websites and which is leveraged off Australian Tourism Data Warehouse content investment, has been established; and The Queensland Government continues to actively lobby the Commonwealth Government to achieve mobile telephone coverage and affordable data services for all areas of the State. The SmartNet project (discussed previously), to facilitate cooperative procurement activities between the Queensland Government and local governments, will provide the basis for improved telecommunications services in Queensland s regions; EnterpriseAngels investor groups have been established and sponsored in Cairns, Townsville, Mackay, Wide Bay, Brisbane, and Toowoomba. Twenty-five companies have presented at seven showcase events six companies have received a total of $1 million in seed funding plus several other business networking outcomes, with more investment deals in the pipeline; Regional business has been supported through: - The ICT Upskilling Project to improve business skills of small ICT providers in rural and regional areas of the State by building their capacity to help their small-to-medium enterprise clients; and - Computer Applications for Small Enterprises (CASE), which involves the delivery of e-commerce seminars, workshops, fact sheets, case studies, oneon-one assistance and clustering through specially trained staff in the State Development Centres. 11

14 Conclusion ICT is fundamental to the new economy, in which knowledge is as valuable as natural and human resources. The future strength of Queensland s economy depends on fully exploiting the growth potential of the ICT sector as well as harnessing ICT s capacity to improve the competitiveness of other industry sectors. The Queensland Government is working to ensure people, businesses and communities throughout Queensland have access to high quality and affordable infrastructure, technology, education, skills and information. Through supporting the development of our ICT industry and increasing the level of ICT skills throughout the community, we are ensuring all Queenslanders can share in the social and economic benefits of the new economy. A full copy of the Progress Report is available online at the Department of Innovation and Information Economy s website 12

15 Notes 13

16 Department of Innovation and Information Economy PO Box 187 Brisbane Albert Street Queensland Australia 4002 Phone: Queensland the Smart State

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