1 April 2008. The new Labour Government is looking to cut at least $15 million from the public service's $400 million annual air travel bill. A spokesman for Finance Minister Lindsay Tanner said there was scope to reduce travel through government agencies making better use of technology. (Picture is of tulips in Canberra)

"Some departments already make use of videoconferencing, but we're looking to enhance its use by the public service generally," the Finance Minister said.

 Kevin Noonan, head of Intermedium consulting said there was renewed interest in videoconferencing from government agencies and some suppliers. "The Government's planned cutbacks on travel are causing rethinking about alternatives within agencies," he said.

"The other driver is the skills shortage. Because agencies can't get sufficient people to staff project teams in one location, they've been building project teams in a variety of locations and looking at better means of communication between those teams," he said.

Mr Noonan said agencies were looking at videoconferencing at the desktop, and specialist room-based facilities designed to improve the dynamics of conference meetings.

Intermedium research shows government agencies spent $9.5 million on videoconferencing services and equipment during 2006-07.

Defence was the largest purchaser, accounting for almost 64 per cent of the spending, at $5.4 million. Servicepoint Australia was the most successful supplier, signing contracts worth $6.2 million during the period, ahead of Electroboard at $1.2 million and Commander Group third at just $400,000.

"The first half of 2007-08 has seen a downturn, in line with a lot of IT spending before the Federal Government election," Mr Noonan said.

Everyone is expecting expenditure to rise sharply under the new Federal Government.

Source: Australia IT News at http://www.australianit.news.com.au