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Cautious welcome for Labour's second term

Friday 08 June 2001 03:25
IT users and suppliers have given a cautious welcome to New Labour 's landslide second term with the proviso that government now focuses on e-commerce and the special skills needs of the sector.

Colin Beveridge, representing the new "super-user group", the Confederation of British Technology, commented: "Labour demonstrated that they didn't understand IT any more than previous administrations." He advised the new government to deliver on skills, provide national standards for e-commerce and to "think through the IT implications of their policy pronouncements."

His criticisms were supported by the results of an online poll conducted by CW360.com prior to the election, which highlighted a significant degree of dissent within the IT community over the last administration's policies, notably over the issues of IR35 and skills. The Conservatives recorded twice as many online votes as Labour in the CW360 poll.

"Recognising the maturity of the IT skills market and improving co-ordination of employment policies to avoid anomalies, [would avoid] the IR35 fiasco which did not sit well with the relaxation of entry visas for overseas IT workers," Beveridge said.

John Higgins, director general of Computing Services & Software Association (CSSA) called for the immediate creation of a cabinet post for IT. Such a minister would "understand how to exploit IT in order to gain competitive advantage for the country, and how to use IT wisely and effectively to modernise public services," he said.

Stephen Alambritis of the Federation of Small Businesses said that continuity in government departments would help SMEs but also put in a plea for low interest rates and low inflation. This is particularly important for IT businesses, enabling them to invest and keep up to date with global developments, he pointed out.

" I think that people will be looking more to the Bank of England, irrespective of governments, to ensure that economic substance and base is there," Alambritis concluded.