Preliminary comments on BSEG report

[Marius Coomans]

On Mon, 6 Mar 1995, Rhys Weatherley wrote:

>> Are you proposing that the government drop its partnership for development
>> program which has injected millions into the local IT industry?
>
>I certainly wouldn't.  The government would be foolish to do so.  But
>let's be brutally honest.  Australia is all socket and bolt jobs when it
>comes to hardware.  Software and content is where our strengths lie.  If
>we produce it, they will come.  If we do not produce it, we only have
>ourselves to blame.
>
>> Personally, I would welcome a reduction in the such IT industry subsidies
>> which in many cases are little short of shams in favour of some real
>> support for local Interactive Multimedia content industry.
>
>A cheap shot.  Supporting the local interactive multimedia content
>industry is a very good idea.  Restricting broadband is not the way to
>acheive this.  The multimedia industry should be supported directly.  It
>shouldn't be supported through protectionism.

Sorry, I do not see the difference between insisting that computer
importers spend a certain amount on local content or generating offset
exports and the BSEG 10% local content rule.

I you agree that the partnership programme is beneficial and creates a
competitive industry why can't we insist that Testra and Optus spend 10% of
the total value of entertainment and information services. That is hardly
an onerous requirement.

>The BSEG's central failing on content issues (IMHO) is that they haven't
>recognised the cultural worth of the general gasbagging that happens on
>the Net.  They see culture in terms of what one can buy and what one can
>see on TV.  Not in terms of what the people in the culture do and say in
>their daily lives.

I don't see how this features in this argument. No one is talking about
imposing any requirements on the Net. The 10% rule is for _Broadband_
service providers.

To quote the BSEG Report:

"The Expert Group recommends that providers of broadband entertainment and
information services be obliged to commit at least 10% of their exenditure
on content to new Australian content. This obligation should be reviewed by
the year 2000."

Would we have a vigorous IT industry today without local content rules?
Would we have a vigorous Film/Television industry without TV local content
rules in the 60's and 70's?
Would we have a vigorous local music industry without radio station music
quotas in the 60's and 70's?

Is it really that bad to ask News Ltd, Telstra, Optus, PBL to at least
spend 10% on local content?

Marius Coomans                  Firmware Publishing Pty Ltd
Phone +61 47 217 211            Firmware Design Pty Ltd
Fax   +61 47 217 215            28 Coombes Drive Penrith NSW 2750
marius@firmware.com.au          Australia
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