The Spatial Information Industry and the Australian Economy

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The Spatial Information Industry and the
Australian Economy
PAUL FARRELL Managing Director
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Australian Wine Industry
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Pre-Amble

• The industry has size but fragmented
• Economic benefits are high
• Support from government is essential
• Investment will provide high returns.

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Background

• Action Agenda (2001)
• Australia will be a global leader in the
  innovative provision and use of spatial
  information
• Investment support lacking
• ASIBA CRCSI mid 2007
• ACIL Tasman

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ASIBA

• ASIBA Australian Spatial Information Business
  Association

• Provide one voice representing spatial
  information business interests
• Promote the spatial information industry
• Relationships with Government and influencing
  policy direction
• Grow the industry

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The Spatial Information Industry Who Is it?
Figure 2 Supply chain in the spatial information
sector


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Our Industry

• Spatial information
• The location of and relationships of objects in
  the real world.
• The Industry is valuable
• Worldwide 40B (est.)
• Australia 1.366B
• The Industry is high growth
• Overall 11
• New economy 40
• The Industry is dominated by SMEs
• 18750 employees
• 745 businesses
• 90 have lt20 employees
• Source Positioning for Growth 2002, Spatially
  Enabling Australia 2007

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Economic Impacts

• Lower bound verifiable case 0.51 to 0.79 GDP
  (5.3B to 8.9B)
• Confidently and verifiably quantify
• Estimated realistic results 0.99 to 1.57
  GDP (12.5B to 16.4B)
• ACIL believes to be reality

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Economic Impacts From Where?

• Key net benefits derive from
• faster discovery of minerals and petroleum
  resources in more difficult to find areas
• faster provision of land and infrastructure which
  is highly important to provision of housing,
  urban development and provision of new
  infrastructure to the resources sector
• improved transport planning and management
• safer air and sea transport
• vastly improved systems for asset management
• more efficient management of utilities and
  infrastructure
• better environmental and natural resources
  management
• more efficient production in agriculture
  fisheries and forestry
• more efficient management of threats from pests
  and disease in agriculture
• higher levels of security from terrorism
• more efficient, effective and timely emergency
  management systems
• more effective marketing and retail planning
• better decision making and policy formulation and
  implementation.

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Economic Impacts From Where?

• Key net benefits derive from
• Time savings
• Input cost savings
• More output

Timely Efficient Effective
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Future Potential

• Potential
• Lower data costs
• Increasing computing power
• Consumer commodity (GE, Nokia, Car Nav)
• Threats
• Inconsistent data pricing
• Lack of awareness
• Data property rights
• Lack of strategic investment

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Use of Spatial Data
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Key Recommendations

• COAG to address the skills shortage.
• Establish a Spatial Information Innovation
  Development Initiative for 5 years.
• COAG to expand the quality and quantity of
  available FD.

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Main Recommendations

• 4. COAG to invest 200M in an ASDI over the next
  5 years.
• Value add services to data left to private
  sector.
• Spatial industry to be recognised by ABS.

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The Role of Government
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Download www.ngis.com.au/walis
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Summary

• The industry is large but fragmented
• Economic benefits are high
• 1.3B industry delivering approx. 1000 returns
  to economy
• Support from government is essential
• Institutional Building
• Capacity building
• Industry development
• Any investment will provide high returns.

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Australian Wine Industry
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• 1986
• Importing more than exporting

• 2004
• 2.7B exporter
• Fourth largest global wine exporter
• 100 countries

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