FOR RELEASE     #05-092
April 12, 2005

WHITEHORSE - The 2005-06 Yukon capital budget includes a $5.8 million investment government-wide to upgrade computers, networks and information technology applications, Highways and Public Works Minister Glenn Hart announced today.

"This government made a commitment to the private sector to maintain a stable level of investment in Information Technology (IT)," Hart said. "This will ensure our government has the technology needed to effectively and efficiently run its programs, and it will allow private sector IT businesses to plan and grow."

The investment represents a level of funding consistent with last fiscal year; and a return to increased IT funding after a decline prior to 2004. A significant portion of the money will flow to local companies and service providers as government purchases new equipment and seeks consulting expertise.

"As we plan, design and buy equipment and systems, we are developing business partnerships with local service providers and drawing upon private-sector expertise," Hart said. "Longer-term, stable funding for the Yukon IT sector is something the industry has been requesting for sometime to further develop its expert knowledge."

"This is starting to look like stable funding, and that is a good thing for our industry," Ken Sylvestre, president of Yukon Information Technology Industry Society said. "The unpredictability of government spending on IT is an on-going issue within the industry. This degree of certainty makes it easier for us to plan for growth and staff development. The industry may now be able to attract more young people to the IT industry and keep them and their talent in the Yukon."

"The information technology sector has tremendous potential and we want to make long-term investments to provide employment, create opportunities and ensure our internal government systems as well as our connections between agencies, the public and communities are as up-to-date as possible," Hart said.

-30-

INFORMATION TECHNOLOGY BACKGROUNDER

IT Investments

The government will invest $5.8 million in capital improvements to IT in the new fiscal year. A large portion of this money will flow to local suppliers and service providers.  The investments include:

• $3.3 million will be invested in system development to support departmental projects and implement technology solutions.  The information systems include:

     • Financial Management Information System;
     • Human Resources Management System;
     • Motor Vehicles System;
     • Property Assessment, Titles and Taxation System
     • Land Resource Management projects (Geomatics), and
     • Project management, planning and website development.

• $1.85 million will be invested in hardware and network physical infrastructure.  This is necessary to support the government’s shared information and communication network environment. This includes servers, routers, switches, printers and fiber connectivity.

• $663,000 will be invested in workstations. This includes purchasing new desktops, replacing laptops and software upgrades.

Local IT Sector

The Yukon government, as the largest user of technology in the Yukon, will channel a large portion of the $5.8 million in IT spending to local IT businesses for systems development projects, hardware purchases and technical support.

These additional resources will support growth and stability in the IT sector, which currently totals about 30 businesses.  This investment will make it easier for IT companies to rationally plan for growth and staff development.