ICT sector gets boost in federal budget

Broadband and healthcare technology got some good news in the federal budget this week, and according to one industry association, the moves should help stimulate growth in the broader information and communications technologies (ICT) sector. In particular, the Conservative Party committed $225 million over three years "to Industry Canada to develop and implement a strategy on extending broadband coverage to all currently unserved communities beginning in 2009-10." As well, the healthcare industry will get a boost with a one-time $500-million investment in 2009 to Canada Health Infoway to continue with its electronic health record initiative. During last fall's election campaign, the Conservatives pledged $500 million over five years for broadband deployment. Acknowledging that the budget commits less than half of that, Lynda Leonard, senior VP with the Information Technology Association of Canada, says the amount is "respectable" and shows the government recognizes that broadband is part of the 21st century infrastructure. "It's not quite what was being discussed , but when you calculate that any kind of major broadband infrastructure is going to require funding from at least one, probably two other levels of government and the private sector, and you start to do the compounding, it's a significant amount of investment in a vital piece of 21st century infrastructure," she tells Tech Media Reports. The Infoway investment is also significant in two respects, notes Leonard. "One of our key concerns was with all the present concern with industrial sectors and resource sectors that are facing very serious challenges that we would lose sight of what we need to put in place to ensure that we have a strong future. Investments in the electronic health record require some fortitude to make," she says. "When you've got all these conflicting requests, a stake like this is very significant and is very future focused and obviously going to significantly improve the efficiency and the patient outcomes in the healthcare system." Canada Health Infoway was unavailable to comment on the budget at press time, but issued a statement highlighting its satisfaction with the $500-million investment. "The government of Canada's continued financial support means every province and territory will continue to benefit from the improved patient safety, cost savings and increased clinical efficiencies that electronic health record systems generate," said Richard Alvarez, president and CEO of the federally funded not-for-profit organization. ICT adoption by businesses gets boost Suppliers and business users of computer equipment and related software and systems also got some good news in the federal budget this week with a decision to increase from 50% to 100% the write-off of computers, software and systems for the next two years. Leonard lauds the government for implementing this tax provision and for recognizing the positive impact that ICT will have on enhancing the productivity of Canada's economy. Currently Canada lags behind the United States in terms of investment in ICT. According to ITAC, Canada spends 62% of what the US spends on ICT equipment and services on a per-worker basis. Leonard says the 100% write off is a clear sign that the government understands the productivity enhancements that ICT can bring to the overall economy. "We are pleased with it because it signals we're going to come out of this with a much stronger, more productive economy, which is critical for our recovery from these rough economic times, and will help ensure that the deficits we produce in the short term will be short term," she says.

ICT sector gets boost in federal budget

News | 01/29/2009 8:24 pm EST

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