No big bucks for channel

No big bucks for channel

Key channel players have expressed general support for the Budget but also regret that it failed to address skilled labour shortage and business tax issues effectively.

Data#3 CEO, John Grant, said the budget was largely more of the same, and demonstrated a continued focus on business outcomes by keeping expenditure on track.

"Our business depends on a robust economy - that's when customers spend," he said. "We think investment will continue and we will be in there competing with the best of them."

But despite helping to foster a healthy market, the budget had failed to advance key issues of importance to the wider industry, Grant said. These included things like intellectual property, exports and tax incentives, he said.

"Those areas are a very important agenda for the government to execute on but there was nothing in the budget to underpin them," he said. Grant said changes to foreign investment rules, and the beginnings of a solution to the issue of overall skilled worker shortages, would also be of some benefit. "The Government has announced some investment in the institutions which will supply these staff," he said. "But it remains to be seen if that investment is enough."

Express Data managing director, Ross Cochrane, said the budget included important reforms but lacked any big bangs for business. "Increasing the labour force

and investment in more skilled people can only be good for IT, but it would have been good to see a cut to the business tax rate," he said. "Tax rate reductions for

individuals will have flow on effects at the consumer end of the market, but there were no cuts for business.

"A reduction there leads directly to a business' profitability, which then allows for more investment on the skills side."

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