Productivity, and more specifically productivity growth, is a vexing issue for governments worldwide, and an area where New Zealand has traditionally performed poorly in comparison with regional neighbours.

Productivity growth is now firmly on the national political agenda, because it is now well understood that such is integral to lifting our country’s economic performance and standard of living.

In an important speech earlier in the year, Prime Minister John Key laid out the government’s plan for driving productivity growth in New Zealand, focusing on six main areas: education and skills; innovation and business support; a better public service; infrastructure investment; regulation, and tax. Generally, this focus resonated well with the business community, although it was disappointing that a direct connection between these focus areas and ICT as a key enabler was not more clearly articulated.

However, subsequent addresses by the Prime Minister and other senior ministers, such as the speech the PM made at the recent opening of the new Auckland Fujitsu Customer Support centre, suggest a commitment to the development of the digital economy.

NZICT has looked to increase this focus with the release of our “Near Future Digital Priorities” white paper, which includes 29 recommendations, most of which carry a productivity benefit, see www.ict.org.nz.

There are many examples from economies around the world where the strong and confident use of ICT has proven to be the catalyst for national productivity growth. And New Zealand’s digital or ‘weightless’ economy promises an array of opportunities for growth and development.

It opens up new opportunities for businesses to increase efficiency and productivity, and provides opportunities for the public sector to engage with and deliver citizen services in new and efficient ways. While the government has signalled a significant investment in broadband infrastructure, and improved ICT policies, there is still a need for direct policies and plans, both public and private, which drive productivity growth from the ICT industry itself.

While there is continuing debate surrounding the make up of the planned new infrastructure, we also need to start thinking about what services will run over these next-generation networks.

It has been reported that the government’s broadband initiative will generate additional economic value of $2.7 to $4.4 billion to the country each year. This is an explicit example of the key role that ICT infrastructure can play in driving productivity on a national scale. And the ICT industry has a critical role to play in facilitating the development and deployment of the applications that will make this growth possible.

This is not just a metro-centric issue. Tourism in New Zealand, for example, is a $50 million per day industry.

Queenstown alone generates around $795 million per year in tourism revenue. Imagine how much the ICT industry, with a range of innovative services and applications, could contribute to the competitiveness, and improved productivity and growth, of the tourism sector.

NZICT, which represents the interests of a growing number of ICT companies, has a key role to play in providing leadership and direction in the aforementioned areas. NZICT has a work programme that is focused on the core issues of productivity and innovation. In fact, the group will soon be launching an index card that will measure growth in the digital economy spurred by the ICT industry.

Innovation comes from improved services and applications, which is, essentially, what the ICT industry has to offer New Zealand. If we can work together and embed such, then we will be stronger as an industry in the future. NZICT’s aim is to encourage the government and business in New Zealand in their efforts to leverage the capabilities and skills of the ICT sector.

Productivity, enabled by the smart, consistent and widespread application of information and communications technologies, can be a key driver of national economic growth and individual prosperity in New Zealand. The ICT industry needs to act co-operatively and decisively to ensure that this potential is realised.

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