Examination of Witnesses (Questions 80-82)
INTELLECT
20 JANUARY 2004
Q80 Mr Clapham: Coming on the back of
that question, if we were to examine the current situation with
a view to identifying where major errors had been made in terms
of the policies that are required to support the United Kingdom's
information technology industry what would you say they were?
I heard Dr Hargraves say there is a need for more support, you
referred to the Treasury, is there anything else that is required
to be done that we have missed?
Mr Higgins: As we all know, and
you are discovering as you go through this process, it is enormously
complex and a very initiative-rich area. There are lots and lots
of things. I am not sure we could pick out any specific things
that have been wrong or particularly driven better than others.
One thing that does seem to me to be beginning to be a weakness
is a bit of a tendency to take our foot off the gas. I have said
to Stephen Timms that it worries me greatly that his job title
includes "Energy and Postal Services" that does not
give me great confidence that the Government regards the whole
"e" agenda with such enthusiasm as it once did. I think
there is a great danger in that, and I have said that to him on
a number of occasions. Stephen is a great minister and he supports
this sector enormously and our industry but we would like a bit
more of him. To have him spread round "Energy and Postal
Services" is not terribly helpful.
Q81 Mr Clapham: A bit more of him and
perhaps more cross-government support.
Mr Higgins: I think the cross-government
support is actually fundamental. If I come back to my car metaphor,
if you like, and also why do we care, I think in the car metaphor
if you think of the knowledge powered economy as a car, it might
be a knowledge powered economy but it is still an economy. It
seems to me that the people who are traditionally at the driving
seat of an economy are people in the Treasury. Organisations like
ourselves representing the ICT industry we might see ourselves
as, if you like, the tools supplier, the power tool suppliers.
We, of course, want to see that our power tool industry is developed
but also that our power tools are used to make the cars as efficient
and effective as possible. If I can extend that metaphor, we see
the DTI having a very important role as the engineers and mechanics,
supporting our power tool industry but also ensuring that these
are deployed well. If a knowledge powered economy is only a different
sort of economy, a more efficient economy in the field sector
of the economy it seems absolutely logical to us that the people
who understand how to drive economies should be driving the knowledge
economy. That is the danger, the fundamental one of taking your
foot off the gas and maybe having the wrong people in the driving
seat as well.
Q82 Chairman: I am just thinking about
the metaphor, I will do it a wee bit, if I can, I kind of worry
that the risk averse character of the Treasury would be such that
this vehicle which would be driven not only would the foot be
taken off the gas but they might be frightened to go on the motorway,
despite the fact it is safer to drive on a motorway than on most
of our roads. I make the point but again as time goes on we will
test out your suggestion about Treasury and an individual within
the Treasury responsible for it. What I would be interested in
is actually to get your view on the diminution of the status of
the e-envoy or the disappearance thereof, how do you feel about
that? In passing you said that part of the impetus behind much
of what has been successful in the Government's achievement could
be attributed to the e-envoy, which we have not got.
Mr Higgins: To the creation of
that role as opposed to the individual. The original model we
all had in mind was President Clinton's special representative,
Ira Magaziner, whose job was to ensure that the `e' agenda stayed
near the top of each departments agenda. That is what we all more
or less had in mind when we were making recommendations about
the creation of a similar post here in the United Kingdom. My
own interpretation of what happened is that modernising government
and the application of information and communication technology
into this huge modernising government programme quickly became
a key priority with the e-envoy and that is how the role has transitioned
now with the appointment of somebody responsible for e-government.
That in itself is a big job to do but I do think it has and will
continue to take focus of this knowledge powered economy. I think
we do have to find a solution to that. Putting whatever follows
the e-envoy focusing on application of technologies to modernise
government, given it is a projected spend of £40 billion
over the next three years in health, defence, central and civil
government, criminal justice: huge, huge challenges, you are absolutely
right to have a key focus on it but we also have this knowledge
powered economy issue to deal with as well.
Chairman: We have just about covered
all of the areas that we wanted to. Having said that if you have
any second or third thoughts we would be happy to receive them.
If we can get your observations on the INSEAD World Economic Forum
update, that would be helpful too. Once again thank you very much,
gentlemen, it has been very good.
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