Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to the Opening of CIC Technology's Expanded Sydney Office

Sydney, 27 July 1998

Charles Tym, Managing Director, CIC Technology; international guests, ladies and gentlemen.

I am very pleased to be here today to witness the opening of CIC Technology's expanded Sydney office. I understand that CIC has a great deal to celebrate as they are looking at a substantial expansion in their business through exports. It is particularly pleasing to see a company which is finding new export markets in Asia at this challenging time.

Indeed, Australian companies generally have been very astute in the way in which they have been handling the economic difficulties being experienced by a number of our Asian trading partners. Australian exporters are certainly a smart bunch, identifying where export opportunities are still available in the region and looking to diversify into other international markets at the same time.

And they don't come any smarter than this one. What began as a small outfit involved in bringing the PC revolution to Australia in the early 1980s has developed into a $50 million operation providing remote management of IT systems and other IT services.

Now I always thought that company management which was distant and remote was something to be avoided but clearly in the IT context this is cutting edge stuff. In fact, CIC has done such a good job that Microsoft recently awarded them "partner" status in their "certified solution provider" program.

What Government is Doing on Electronic Commerce

Now today I would like to tell you that the Government is also in the business of improving the operating environment for Australian companies!

At a macro level we have this by putting in place the best economic settings in a generation - a low inflation, low interest rate environment, having turned around the budget deficit and having begun a debt reduction program.

But I know it will be of particular interest to the IT industry that the Government has begun establishing a domestic framework which will help Australian businesses to take advantage of the great promise of global electronic commerce.

In fact on Wednesday the Minister for Communications, the Information Economy and the Arts, Senator Richard Alston, will be launching the Coalition Government's draft national strategy for the information economy. This document will set out the Government's vision and strategic approach to the information economy, and will form the basis of a major consultative process over the next few months with all stakeholders in the information economy - such as all of you. I encourage you to take part in this consultative process.

Let us also not forget that one of electronic commerce's great strengths is its value not only to the major metropolitan areas of Australia, but rural and regional Australia as well. There is little doubt that electronic commerce will lead to greater competitiveness for rural businesses through opening up new markets and extending existing ones as well. That is why regional Australia is one of the major focuses of Government work on electronic commerce.

Electronic Commerce and International Trade

Last year the Prime Minister announced the creation of the National Office for the Information Economy to coordinate vital electronic commerce policy issues across government as we move into the next millennium.

Also, as Minister for Trade I have taken a particular interest in the potential electronic commerce holds for Australia, a nation which has always relied heavily on its capacity to trade with the rest of the world.

I have often pointed to how SMEs in Australia are now able to trade internationally thanks to the net. And I know that CIC is looking to grow its business in Asia still further through the ability of electronic commerce to allow them to reach a far wider range of customers.

In fact, rapidly growing electronic trade has meant we have had to start to address the trade policy issues which electronic commerce raises.

Last year my Department released the publication Putting Australia on the New Silk Road: The Role of Trade Policy in Advancing Electronic Commerce. And this is now a website allowing business to inject views on trade policy directions via the net. Also, later this year the Department will be following up with a report on Australia's on-line trade strategy.

APEC and the WTO

Australia is also active in the region and around the globe in looking at how best we can ensure that on-line trade is conducted in a fair and profitable manner.

With Singapore, Australia co-chairs the APEC Electronic Commerce Task Force. The Asia-Pacific region produces over 45% of the world's value of traded goods. And many of these goods will no doubt be traded electronically before too long.

Some of the issues the Task Force is further exploring include how the economies of the region can work together to overcome the looming Year 2000 "millennium bug" problem; identifying impediments to uptake of electronic commerce in the region; and exchanging information on government services on-line.

Also, in the World Trade Organisation Ministerial Meeting in May I was personally able to participate in reaching an important decision on electronic commerce. The WTO will aim to ensure that trade on the net remains free from specific customs duties in relation to trade ordered and delivered through electronic transmissions.

Conclusion

In closing I would like say that the Government remains strongly committed to enabling businesses like CIC to make the most of the emerging information economy's potential.

Once again I salute the hard work that has gone into generating exports at this difficult time in the region. Exports are sustaining our jobs and our standard of living. Your efforts are appreciated by all Australians.