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High-tech group offers guidelines for government

Thursday, October 12, 2000

By Frank Reeves, Post-Gazette Staff Writer

A high-tech trade group is expected to release guidelines today for reining in government's growing influence on the digital economy.

The Computer & Communications Industry Association, whose member companies generate annual revenue of more than $300 billion, has been highly critical of the public sector's expanding presence in private sector e-commerce industries.

"Government is increasingly taking on roles that are not appropriate as a competitor against private industry," said Jason Mahler, the association's vice president and general counsel.

Mahler said the report, prepared by Sebago Associates, a public policy consulting firm, lists 12 criteria government policy-makers should consider before undertaking online activity.

For one, the report says government "should exercise substantial caution" before entering markets where private sector firms already are active.

At the same time, it recognizes that some online activities are appropriate, such as using the Internet to give citizens greater access to government data.

The report is likely to fuel what is becoming an increasing debate between the computer industry and government agencies.

In testimony last week before a congressional panel, CCIA President Ed Black urged lawmakers to block Internal Service Revenue plans to provide electronic tax-filing and preparation services. Block said the IRS plans, if implemented, would directly compete with private electronic financial services.

The CCIA also has criticized the U.S. Postal Service's plan to provide electronic financial services, including person-to-person payments with electronic cash transfers, as an unwarranted "government intrusion" into the private marketplace.

Mahler said the CCIA is also concerned about state programs, such as Pennsylva nia's PA Power Portal.

The site, a centerpiece of the Ridge administration's efforts to bring Pennsylvania into the Information Age, includes links to state agencies, business-to-business e-commerce, free e-mail accounts, news feeds and online yellow pages.

"Such search engines compete against private companies," Mahler said.

In a recent interview, Thomas Paese, secretary of administration in Gov. Tom Ridge's Cabinet, dismissed such criticism.

"We think it is a core function of government to lead by example."



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