Bumper Budget light on tech

By PETER GRIFFIN, IT editor

E-Government is set to receive a security upgrade with the Government committing $14.8 million to developing a system for secure online transactions.

Funding for specific IT projects was otherwise thin on the ground in this year's budget. While a portion of the $212 million over four years bound for research, science and technology, will no doubt feed tech projects and research and development, the authentication project is the only targeted tech allocation.

The "New Economy Research Fund" received an extra $21 million in funding over four years bringing total funding to $70 million for 2004-05.

There was no money specifically set aside to fund the Next Generation internet project which plans to link the country's educational institutes with high-speed data links.

However, research, science and technology minister, Pete Hodgson, is expected to make an announcement on the project next week.

The State Services Commission's E-government Unit and the Department of Internal Affairs will develop a Government-wide system for exchanging information with the Government online.

Key to the system is the issue of authentication - ensuring information is shared with the intended recipients.

A number of methods from passwords and digital certificates to encryption can be employed as part of authentication systems.

"It is one of the key elements of e-government and will become increasingly important as agencies extend the range of their online services," said State Services Minister, Trevor Mallard. The amount includes capital funding of $240,000.

The Government had ruled out the use of a universal ID card as a basis for authentication and would liase with the Privacy Commissioner in developing the system.

The funding follows public discussion of the authentication issue last year. Debate around the project has centred on whether there is any need for an authentication system to be put in place and if there is a business case to support it.

The Government claims the threat of "identity theft" is great enough to risk the progress of E-Government without authentication in place.

A centralised authentication system has already been built by Government, but the details of how the public will use it are yet to be ironed out.