Australia's ICT trade deficit continues to widen

"Growing Australia's ICT exports is integral to growing our ICT industry and the ICT economy," Dennis said.

"Australia has a competitive advantage and a high potential for ICT exports in computer services, high-quality software and specialist electronics.

"Targeted export programmes should be developed and implemented by government, in consultation with the domestic ICT industry, for each of these sectors and for others as they arise."

Dennis said the focus needs to be on education, skills and communications infrastructure, which as as the backbone to ICT prosperity, adding that there needs to be further broadband debate by government. "Skills development, and an improved understanding of how many people we need and what skills they require, is of utmost importance to improving the trade deficit and enhancing economic growth," he said. Dennis said that unlike many of its trading partners, Australia does not have a national medium to long term strategic framework to provide direction and structure for ICT policy, aimed at generating sustainable growth within the ICT sector to drive future productivity improvements. "Australia has great potential to become an offshoring destination, however we must continue to adjust to offshoring - protectionist responses are unlikely to be productive," he said.

"We need a measured response that takes advantage of the benefits of offshoring while managing the adjustment process i.e. making sure benefits flow onto consumers as quickly as possible through strong attention to competition policy.

"There is also a need to support a culture where we preference Australian IT service providers and products."