AUSTRALIAN COMPANIES REJECT LABOR PROTECTIONISM

4 May 2004
54/04

Labor's misguided plan to outlaw offshoring has been rejected by 92 per cent of companies and government agencies surveyed by the Australian Information Industry Association (AIIA).

The poll, released today, found that Australian organisations appeared loyal to local suppliers, with 83 per cent of those surveyed not even considering offshoring.

While the AIIA poll shows that Australia is still in the early stages of offshoring compared to other countries, it does highlight the need to promote our local ICT industry as an effective and high quality destination for off-shored work.

This has always been the Australian Government's focus and can be seen in our support for innovative ICT start-up companies, as well as our promotion and marketing of Australian companies internationally through programs such as Invest Australia.

The Government's forward looking approach is supported by the AIIA's conclusions from its survey, which show little support for Labor's old style approach of panic and protectionism.

Opposition IT spokeswoman, Senator Lundy, has again demonstrated that Labor continues to take policy instructions from its union mates, restating today the Opposition's intent to legislate against Australian companies outsourcing offshore.

Rather than stick its collective head in the sand, Labor should accept that offshoring is a modern global phenomenon and look at ways to ensure that Australia benefits from this practice.

In the AIIA's media release today, the association's president, Rob Durie, says the poll shows "that if we can develop our capabilities and market them effectively, Australia can be a destination for offshore outsourcing".

Australia is already winning offshore jobs from companies such as Deutsche Bank and UBS Warburg because of the marketing work that Invest Australia is doing.

Labor plans to scrap Invest Australia in favour of old-style protectionist walls reflect the Opposition's short-sighted and regressive approach and will only handicap the development of an important Australian industry.


Media Contact: Carina Tan-Van Baren (02) 6277 7480 or 0439 425 373