A computer technology to create work

Press, 12 August 1980, Page 16

A computer technology to create work

Wellington reporter “What do we do now — an employment strategy for the 80s” is a document prepared by a computer firm’s management services executive for discussion within the Government and government departments. It has been released for wider discussion by its author because of his dissatisfaction with his lack of progress. Mr Michael Beardsmore is the management services manager of the Aucklandbased firm of IDAPS Computer Science (N.Z.), Ltd, an exporting firm with overseas officers, which sells computer services rather than hardware.

Because it deals with computers, IDAPS inevitably is involved in making people redundant. Computer firms call it “the lingering death by a tiny thousand cuts” because its activities mean people go in twos and threes over a long period. For example, the insurance industry in New Zealand has seen a 10 per cent drop in its work-force in the last five years. The insurance industry used to be described as a “soak-pit” for employment; it took large numbers of unskilled school-leavers, trained them, and gave them a career. Fewer insurance companies do now, and fewer will do so in the future. Mr Beardsmore. wants to use computer technology to create work. “The question is not whether New Zealand will survive economically in the long-term,” he says, “but whether it can survive the social upheaval in the shortterm. The key to this is the planned creation of . a maximum number of new job opportunities for all individuals, irrespective of their current education to take advantage of these. These will be the two most crucial aspects in minimising the social pain of transition,” Throughout the western world job opportunities are not provided by the multinational companies, but by small companies. During the last five years in the United States. 85 per cent of all new

jobs created have been' in companies with fewer than 20 employees. Mr Beardsmore says the West seems poised to enter a new age of the entrepreneur .and the small business. He does not find this . surprising, because the new technology, with its price structure, acted as a great leveller, providing more chances for the innovative entrepreneur than for the large company. If New Zealand is serious about full employment, he says it has the chance to capitalise on technology and small businesses to create jobs. “Even conservative estimates put the number of jobs to be created at over 300,000 in . the next five years. /‘This will not be achieved either • by ‘laissez-faire’ economic policies or through massive capital projects, such as aluminium and energy which will not. of themselves, create this number of jobs.” Mr Beardsmore says what is necessary is a support system designed to achieve these goals: — To identify and encourage entrepreneurs; — To give maximum help to new business ventures and research, and development of products and ideas; —To give financial planning help and access 'to risk capital. —To provide - support services in marketing, finance and business management; and — ; Tp provide extensive industrial retraining facilities to ensure that qualified staff are available for the • new jobs.

To achieve this, a new type of “nursery” is needed, with broad functions where the combined resources- of management skills, finance and education are brought to bear on individual new ventures. Mr Beardsmore gives three key elements of success:

—- A school of entrepreneurs, to act as a crucible for the testing of ideas and

the development of business plans; —A support structure consisting of expertise . in marketing, finance and business management, which would be.available on a consultancy. basis to new business ventures during their early stages; and .— Retraining facilities able to provide the skills necessary to support the new ventures. The computer technology is available in New Zealand to help such a project, he says. He also emphasises that his ideas are not original; they are being developed and

are . working successfully overseas. Such an organisation should be set up within the private sector, because there needs to be an understanding of the nature of private enterprise and business planning for profit. A Government-sponsored venture could not achieve it. Lines of credit will need to be established with main banking organisations to ensure that enough venture capital will be available, given that projects meet business criteria. Part of the initial cost of funding will be an allocation to cover the costs of the

support structure and the training facilities. Thus, once working, the “new venture centre” will become selfsupporting. Initial funding for the centre (one of which will be needed for each main region) could take the form of a direct Government grant, or suspensory loan to cover the cost of high quality facilities, staff recruitment and initial set-up costs. A further Government incentive might be a “tax holiday” for. say, the first five years (as in Singapore) of any new ventures.

Mr Beardsmore says computer firms have a social as

well as a commercial interest in such a scheme. In France so far this year, two computer bureau installations have been blown up, another two fire-bombed, and the head of one multi-national computer firm was ‘murdered. “Without a concerted effort to achieve new job opportunities, and the blessing of the Government,” says Mr Beardsmore, “the unions and the employers, the outlook is bleak—increasing unemployment; increasing resistance to new technology, and the vicious cycle' of . reducing wealth for distribution.”