VARs lukewarm on DTI deal
Government plan to bolster technology will have little immediate impact, says channel
Prime Minister Tony Blair has promised to inject £400m into the Department of Trade and Industry (DTI) to help the UK develop the technologies of the future.
The money forms part of the government's five-year plan to transform the DTI into a "department for technology innovation" and spur the development of technologies such as nanotechnology and bio-science.
In a speech last week, Blair said: "My message today, and the message of the new DTI five-year programme, is that sustained success is within our grasp. We lead Europe in our share of value-added coming from knowledge-based and high-tech businesses.
"The five-year plan makes a concrete promise to reduce the regulatory burdens on business arising from DTI regulations by more than £1bn. I want business to work with us to achieve this."
However, Mike Briercliffe, chairman at the IT Forum Foundation, said it would be a while before the channel felt the effect of the government's investment in the IT sector.
"It may have a short-term effect on the channel, but it could be five to 10 years before the channel sees real benefit," he said.
"Technology development doesn't happen at government level, but it's providing a forum to help get new technologies up and running. The cash will help grease the wheels."
He claimed that the channel has already had enough money spent on it through various IT initiatives.
"The channel has all the money it needs from the government, such as the continuing plans to get SMEs to develop confidence in IT," he said.
Kieran Archer, managing director at reseller Information Technology Systems, agreed with Briercliffe that the channel would not benefit for some time, but said SMEs receive little financial help from the government.
"We don't feel we've had any support. We are not aware of any financial schemes designed to help us," he said.
"Most SMEs have to pay for what they do from their hard earned cash. The £400m is dwarfed by the private funding of new technologies and it won't have any effect on us."