CBC

Mon Apr 16, 12:30 pm

Newfoundland high-tech industry appeals for fairness

Newfoundland's high-tech sector says unless the government spreads the wealth more equally amongst local businesses the industry may not last much longer.

The government is the province's main purchaser of technology-related goods and services. So far, it buys most of its products from one main company, Xwave.

Jeff Tulk, a member of the Newfoundland Association of Technology Industries, says the provincial government "is spending millions of dollars going around the world saying we're open for business for IT… yet to the existing businesses they're saying we're closed."

Tulk said with the current dot-com slowdown, companies are struggling and need the help more than ever.

Indeed, the days of double-digit growth are over as layoffs and closures become commonplace among the province's 200 companies.

Even the poster child of Newfoundland IT, Zeddcom, has been affected despite a 70 per cent growth rate.

Said Zeddcom's Emand Rizkalla, "Fifty per cent of NATI members are exporting but they need a local market to cut their teeth. This is the single most painless act the provincial government could do to really spur tremendous growth, because it won't cost taxpayers any money."

The provincial government says it understands NATI's concerns and will try to take them into account.

-- Rachel Gibson (rgibson@hotmail.com), April 16, 2001