Change of government in Victoria throws digital state up in the air

Former Victoria Minister for IT Gordon Rich-Phillips. Photo: Paul Jeffers

The departure of Gordon Rich-Phillips from the role of Victoria's IT minister after Saturday's election loss, leaves the state midway through a technology procurement and digital vision overhaul.

It's not yet known whether incoming Premier Daniel Andrews will appoint a technology minister, if anyone will have the heavyweight status of his predecessor or whether the state will continue to foster a climate of digital innovation.

After taking the high-tech helm in 2010, Rich-Phillips, also the state's former assistant treasurer, undertook a sweeping program of reform designed to attract technology companies and restore integrity to the government's management of ICT projects, after well-documented IT debacles. He published a yearly update on the state's ICT strategy.

Purchasing panels were replaced by a flexible e-Services register and long-standing suppliers Telstra and Optus stood to lose their monopoly on the supply of telecommunication services to the public sector next year.

The change of government leaves in question the future of the discredited government services bureau CenITex.

The agency accounts for $140 million of the state's $1.5 billion annual ICT budget and services the needs of about 37,000 public servants. Set up in 2008 to save $40 million a year, it has been the subject of three inquiries and a probe by the fraud squad.

In September the Napthine government announced plans to outsource its activities to a private sector prime contractor in early 2015.

It's not known whether the Andrews government will proceed with this plan, slated to deliver millions of dollars in procurement savings to the state. His office did not respond to requests for comment.

Under Mr Rich-Phillips' watch, the Napthine government also cut funding to NICTA, with the minister saying the state could not fund job creation in NSW.

Agencies and the industry are likely to be waiting for some time for news of the new government's technology game plan, according to IBRS analyst Alan Hansell.

The administration was likely to reassess the previous government's ICT strategy and an immediate announcement was unlikely.

"Will it pursue [the strategy] or scuttle the transformation initiatives proposed and start afresh?" Mr Hansell said.

"If it starts afresh, the new minister is going to have to be a 'thought leader' and not only present a vision but tell stakeholders how it will be delivered. This is no mean challenge."

Former Australian government chief information officer and now Gartner research vice-president Glenn Archer said the new administration couldn't afford to lose momentum.

"Recent efforts to focus on Victoria's need to leverage digital government practices and technologies will need to be maintained, if not accelerated, if the state is not to fall behind," Mr Archer said.

"There has also been positive progress in the last couple of years in co-ordinating the state government's use of ICT and the response to numerous sourcing issues – hopefully this progress will continue."

Victorian Labor's Platform 2014 policy document offers some generic technology goals for its first term in office.

They include: preparing an action plan detailing the state's digital readiness; working with industry and the public to harness digital opportunities; ensuring all groups in the community are able to engage online; and ensuring government services derive maximum benefit from high-speed broadband access.

"Unlike the Coalition, Labor understands the importance of high-speed broadband to drive Australia's digital economy. As the hub of Australia's ICT industry, Victoria is in a prime position to drive the applications that will make the transition to a true digital economy a reality," the document states.

The chairwoman of the Australian Information Industry Association's Victorian branch, Rebecca Campbell-Burns, said there's no reason for the new government to halt the pursuit of a digital agenda, given its brief time out of office.

"We do not expect any period of inertia, but rather a focus on progressing its skills development and growth agenda," Ms Campbell-Burns said.

"Continued business confidence depends on the government getting on with a decisive agenda quickly and transparently."

Mr Rich-Phillips had been an active and supportive advocate for the IT industry and had focused on improving the state's digital capability, she added.

It is also unknown at this stage if the incoming government will continue the former's support for the digital games industry which had seen an influx of video game developers to the state in pursuit of opportunities and funding provided as part of former innovation minister Louise Asher's portfolio. 

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