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Output 3.3
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Policy advice and program management that assists the development of the information and communications technology industry
High-quality program administration
Advanced Networks Program, National ICT Australia and ICT Incubators
The Department continued the administration of funding agreements under the Advanced Networks Program with each of the three projects, CeNTIE, GrangeNet and m.Net, reflecting the extension of funding provided for the program for the three years commencing 2004–05. During the year, the three projects met all of the 41 milestones required in their funding agreements.
The Department and the Australian Research Council (ARC) continued to administer funding for the ICT Centre of Excellence, National ICT Australia (NICTA), comprising $124.8 million over 2001–02 to 2005–06. A new funding agreement was negotiated with NICTA in May 2006 to provide an additional $249.48 million over five years to 30 June 2011.
In 2005 the Department and the ARC engaged a panel of experts chaired by Dr Ian Chessell to review NICTA's progress in establishing, managing and operating the ICT Centre of Excellence. The review concluded that NICTA had made major progress in its establishment phase and had met its agreed milestones with the Australian Government. Recommendations from the review were used in the development of the new five-year funding agreement signed in May 2006.
Under the ICT Incubators program, eight funding agreements were administered in 2005–06. These were multi-year funding agreements signed in 2004–05. Up to 31 March 2006, 100 per cent of the originally agreed milestones were met.
The Industry Structure and Initiatives Section. (L–R): Clare Dickeson, Colleen Mate, Tristan Kane.
Backing Australia's Ability
The Department continued to support activities that enhance the underlying innovation infrastructure supporting the development of ICT capabilities, particularly through initiatives under Backing Australia's Ability.
By 30 June 2006, funding agreements for all nine projects under the IT Training and Technical Support program, which assists people in very remote areas of Australia to receive basic ICT training and technical support, were signed and all projects were underway. In addition, all of the National Communications Fund projects were completed, aside from three outstanding final acquittals and administration of the eight ICT incubators continued across Australia, providing seed capital and business support services to innovative information and communications technology start-up companies.
Figure 2.46 Program expenditure 2005-06
| Program | Expenditure ($m) |
|---|---|
| Advanced Networks Program | 7.038 |
| National ICT Australia | 23.500 |
| ICT Incubators | 10.553 |
High-quality and timely policy advice and ministerial services
The Department provided significant direct support to the Minister on ICT related matters (see figure 2.47).
Figure 2.47 Advice provided within timeframes
| 2004-05 | 2005-06 | Variation | |||
|---|---|---|---|---|---|
| Type of advice | Number | % on time | Number | % on time | Difference on time (%) |
| Ministerial correspondence | 110 | 59 | 91 | 67 | +8 |
| Briefings | |||||
| - Department initiated minutes | 59 | NA | 56 | NA | NA |
| - Meeting briefs | 33 | 90 | 23 | 92 | +2 |
| Question Time briefs | 85 | 68 | 52 | 75 | +7 |
| Parliamentary questions on notice | 0 | NA | 1 | 100 | |
Timeliness figures are measured against a two-week turnaround target. This is the third year this performance information has been collected and results for 2005–06 have shown improvements over the previous years.
The key issues raised through ministerial correspondence included program implementation matters and general ICT industry development policy and assistance.
The Department supported a large number of meetings between the Minister and stakeholders and provided advice on a range of policy issues. In 2005–06 these issues included:
- implementing ICT initiatives as part of the Backing Australia's Ability innovation package;
- advising on areas of industry concern such as skills demand and supply, employment, professionalism and ICT research and development; and
- providing background and key trends in the domestic ICT industry.
Effective client satisfaction and consultation
Consultation was undertaken through the Women in ICT Advisory Group and the ICT Skills Foresighting Working Group. The Department also consulted widely with industry, the education sector and relevant government agencies on relevant programs and policy development including ICT incubators, the 'partICipaTion Summit', industry development plans, and the Government's policy to cap liability for suppliers in Australian Government ICT contracts.
The annual client satisfaction survey conducted by the Department found that all of the 23 people who had both responded to the survey and dealt with the Department on ICT matters were satisfied with the services provided.
Compliance with accountability standards
In 2005–06, the Australian National Audit Office conducted a performance audit of selected Telstra Social Bonus 2 and Telecommunications Service Inquiry response programs. The programs audited were the BITS Incubator Program and its extension the ICT Incubator Program, the Advanced Networks Program and the extended ANP2 program, the Intelligent Island program, the National Communications Fund and the Mobile Phones for Towns over 500 program. The report was tabled in Parliament in June 2006.
The ANAO concluded that the Department's management of the seven programs demonstrated a high level of compliance with the better practice principles of grant management. The report made two recommendations on program extensions and risk management by grantees managing complex or high-risk operations. The Department will be implementing these recommendations as appropriate.
Research and analysis activities contribute to corporate objectives
To ensure that the Department's policy advice is based on sound analysis and understanding of the ICT sector, the Department conducts its own internal research and commissions external research as required to address specific issues.
In 2004–05, ICT-related research and analysis focussed particularly on an improved understanding of the ICT innovation system and on the broader economic contribution of ICT to innovation policy.
Key employment trends in the sector, the supply and demand for skills, and ICT research and development were tracked as a basis for providing policy advice. A joint government, industry and education sector advisory group is considering the findings of an ICT skills foresighting study and other investigations undertaken by the Department into the ICT skills market.
External research undertaken in 2005–06 included examining the level of involvement of small and medium enterprises in Australian Government ICT contracts, ICT production and innovation in Australian small and medium enterprises, and a study of Australia's software industry and vertical applications markets.
Effective budget management
As identified in the resources for outcome table on page 94, the overall price of Output 3.3 was $177 000 (2.4 per cent) above budget due to higher-than anticipated expenditure on salary.
Managers conduct regular evaluations of budget outcomes, and commentary on variations between budget and expenditure is provided to the Department's Executive Management Group on a monthly basis. The commentary also includes forecasting of budget trends where possible.