Computer industry group lobbies Government

Press, 22 November 1983, Page 26

Computer industry group lobbies Government

A computer industry trade association, the New Zealand Computing Services Association, is lobbying the Government for a clear Government policy for the New Zealand computing services industry and for the establishment of a national computer industry board.

The association, a collection of software houses, computer bureaus, computer distributors, computer suppliers, consultants and personnel agencies, made submissions to' a group of Cabinet Ministers recently. “The information-process-ing industry is fundamental for management control, productivity, and decision making, and is the fastest growth industry in the world,” says the association. “The Government has yet to recognise and acknowledge the fundamental role of information processing through computing software and services as an essential and new, high-technology industry,” says the association, “or that it will dominate the work-force in the next decade.” Mr Gordon Hogg, the president of the association and general manager of Databank Systems, Ltd, told “The Press” that the proposals to Government were

made after the release of the New Zealand electronics industry development plan “We went to them because it was wrong to separate the electronics industry from the software industry,” said Mr Hogg. In its proposals the association said the recent announcement of a reduc-

tion of sales tax on computers used by certain specified industries was part of the Government’s electronics industry plan but in its view did not directly provide a plan for the development of the New Zealand computing services industry, which does not qualify for the reduction in sales tax except in certain areas of primary industry and export. “It is still penalised with a tax rate of 40 per cent,” said the proposals. Mr Hogg described the concerns of bureau operators who are paying 40 per cent sales tax on their equipment but are processing work for some clients who have to pay only 10 per cent sales tax if they buy their own computers. He also said that the New Zealand computer companies have enough going against them without having to pay 40 per cent sales tax on their equipment.

“We are not looking for handouts,” said Mr Hogg. “We are looking for a more balanced and fair opportunity.” In its proposals the association calls for the elimination of the sales tax on computers altogether. The association suggests that communication and consultation should be established between Government and the private sector computing industry through a directional planning body which would evaluate and assess future computing needs and determine in broad terms where the New Zealand industry can or should be developed. Cabinet Ministers have asked the association to take the initiative and prepare a proposal on such an industry board to Government. It is also understood that D.S.I.R. and Department of Trade and Industry officials are undertaking a study on the computer industry in response to the approach from the association. This study could be completed early next year. Other recommendations by the association to the Government include: • Measures to encourage more Government purchasing of the products of the

New Zealand computing services industry. ® An investment fund of $5 million to be established to be available for specific investment projects with good commercial potential. @ Measures to stimulate research and development activity. ® To enable New Zealand business to move into the information revolution and improve management efficiency, all expenditure on computing education and development of management skills should be tax deductible at 150 per cent for one year per company. © Higher depreciation allowed on computing equipment worked more than one shift. @ Restrictions on increases on Post Office data communications tariffs. ® A more liberal attitude by the Post Office to the use of proprietary equipment. ® A more practical emphasis by tertiary educators in the use of, and education in, computing. “Computer terminals will become basic to everyone’s future existence,” concluded the association. “Awareness courses and training programmes for all sectors are increasingly urgent and essential.”