Ed Husic (Chifley, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Treasurer) Share this | Hansard source

I expressed a number of concerns yesterday in the substantive debate. I have no interest in traversing ground already travelled on. On the issue of cost, the minister is well aware of the concerns I expressed yesterday, and I re-express them today. They have also been given voice by the shadow minister. There are a number of things in relation to this. As the shadow minister for communications, the member for Blaxland, just indicated, the type of system changes that will be required by this legislation are significant. This will require a great investment, particularly when you consider the smaller providers. They do not necessarily have the resources of larger players to be able to accommodate these requests.

Also, some of the amendments that have been put forward in the process—that have rightly been reflected on in in a very positive way—will require a greater degree of encryption, and that will require different standards. Some of the smaller players do not necessarily adhere to those standards, and they are rightly concerned.

I have also had expressed to me in the last few weeks a concern from smaller players. They say to me, 'The Attorney-General's Department believe that consultation with Telstra and Optus should represent all that is required when it comes to talking to the telecommunications sector.' The Attorney-General's Department may rightly point out that there is an industry working group and a lot of views are canvassed by that. I understand and appreciate their point, but it would be remiss, at this point in time, to ignore the argument that has been put forward by smaller players that says: 'Telecommunications consultation should not just be limited to Telstra and Optus. The smaller players should be taken into account.'

They feel that, in the course of this legislation being considered, their views are not being taken into account. That is a serious concern. If these costs do impact on them in such a way that it puts serious pressure on their operating future, that is of great concern, because they are providing the type of things that consumers want—competition and pressure on some of the big players to provide better service because of the existence of competition. I am very concerned that those smaller players will face an uncertain future as a result of the inability or the unwillingness of the government to actually spell out what will be done in terms of covering the up-front costs, the capex, and the ongoing running costs, the opex.

I know the minister is very alive to these issues, but I have to say the fact that there has not been greater certainty in terms of what costs might be covered is of concern. I also appreciate that the minister has only just got the PwC report, which I understand—and he can correct me if I am wrong—has not been widely discussed with the sector. It may be the case that it has and I am not aware of it, but I am told that that report has not been discussed in detail with the sector and there has not been a walk through. That is of concern. That certainly needs to be addressed.

I do appreciate that the government is trying to work out, based on the PwC work and the consultations with the IWG, where they will land on this. I would certainly urge that there be greater certainty. I know this matter will be debated in the other place, and it would be beneficial if the government were able to spell out where its thinking is on that.

I would also hope—and this was expressed by the shadow minister—that greater support can be provided for the smaller players to accommodate these changes. It may be the case that Telstra and Optus are in such a strong position with their systems that they can accommodate the transition relatively easily. But certainly I would hope that greater support is extended to those smaller players in meeting the capex, the up-front cost of establishment, and that there is some sort of signal given for opex as well. Overall, again, I know that the minister is alive to these issues, but I am concerned that we have had no signal given. The government made some big expenditure decisions yesterday on other matters that totalled $300 million, yet on this matter there has been no signal given as to what will be done to help those smaller players. I urge the government to give that signal and provide greater certainty to the sector.

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