NBN Watch - business doubts digital economy targets

January 18, 2012

Annabel Hepworth From: The Australian January 18, 2012 12:00AM

ONLY one-third of businesses feel they have enough information about the impact of the National Broadband Network, a new report has found.
A survey of 540 chief executives by Deloitte and the Australian Industry Group also found that a "significant" proportion of companies expected to be negatively affected by reforms to tax breaks for research and development, and that the government would struggle to hit its "digital economy" target -- getting Australia into the top five OECD countries for business use of online technologies.

The report found that 30 per cent of businesses had a "high or medium" degree of information about the practical impact that faster broadband speeds would have, and that just over 50 per cent of businesses were ready to take advantage of the opportunities related to the NBN.

...On the goal of Australia being in the top five of OECD nations by 2020, the report concluded: "Reaching this goal will not be easy and further initiatives will be required."

Asked whether the call for further initiatives was being considered, the office of Communications Minister Stephen Conroy said the Gillard government was already assisting small and medium businesses to maximise the potential of the internet through initiatives including the $12.4 million Digital Enterprise program and a website for digital business.

"It is still early days in the NBN, and the report shows that businesses realise they need to do more to prepare for the massive business opportunities that superfast broadband will deliver," Senator Conroy's spokesman said.

He said the report showed that businesses realised they had to do more to prepare for the opportunities associated with superfast broadband, and pointed to findings that 25 per cent of those surveyed planned to employ new staff to take full advantage of the NBN.

AI Group chief executive Heather Ridout said investments in technology were crucial as non-mining sectors such as manufacturing wrestled with the impact of the high Australian dollar.

On the government's new R&D incentive, close to 30 per cent of companies expected the measure would be negative for business while a quarter said it would be positive.

Ms Ridout, who will leave AI Group in April after almost eight years at the helm, said the federal government should monitor the R&D tax incentive and be ready to respond to any shortcomings that became apparent.
.