The Australian Information Industry Association (AIIA) has reacted strongly to the Federal Government's decision to scrap the Computer bounty by June 1997.
In its recent submission to the Senate Economics Committee Inquiry on the Bounty Legislation Amendment Bill 1996, the AIIA said that despite reassurances by both the Keating and Howard governments that the bounty would remain, the Coalition's about-face came without any warning nor any consultation with the AIIA.
The AIIA argued in its report that the bounty has added a lot of value to the local industry both in the Australian market and overseas, and has reaped more dollars in exports than it has cost the government. The AIIA also challenged the view that the bounty is a subsidy. It argued that the bounty serves to compensate local manufacturers for the raised cost of components used in the manufacture of IT equipment, owing to import tariffs imposed on most of these components.