House debates

Tuesday, 26 October 2010

Matters of Public Importance

National Broadband Network

3:36 pm

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

I thank the member for his contribution. We are happy to debate the National Broadband Network and the importance of the National Broadband Network to our future economy, because this debate goes to the heart of which side of this House has a plan for our future economy, has a plan for building productivity, has a plan for the jobs of the future, has a plan for ensuring that regional Australia is able to participate fully in the economy and has a plan for the National Broadband Network, which will do nothing less than transform our economy and the way it functions. It will transform transport and help deal with urban congestion. It will transform education and the way that education services can be delivered. It will transform health through the provision of e-health services. This is not just about downloads. This is about uploads. This is about what services can be provided.

To be fair to the member for Wentworth, he is fulfilling his brief. When he was appointed to the position by his opponent, the current Leader of the Opposition, the current Leader of the Opposition said:

And who better to hold the Government to account here than Malcolm Turnbull … who has the technical expertise and the business experience to entirely demolish the Government on this issue.

In order to demolish the NBN, they have put up a number of myths. Today we have the greatest myth of them all. They say that there has been no economic analysis. Alan Kohler wrote of the member for Wentworth in the Business Spectator in September:

Yesterday he was repeating the ridiculous line that the government has undertaken $43 billion of expenditure without a detailed business plan or cost benefit study, which has been the opposition’s line throughout the campaign. But what do they call the $25 million, 546-page, implementation study by McKinsey and Co and KPMG, released publicly on May 6?

That study was comprehensive, with a comprehensive financial analysis. It found there was a strong and viable business case for the NBN. It found that there was a sufficient rate of return to cover the cost of funds and positive returns to the taxpayer by year 6. It found that the cost estimate is conservative and can be reduced.

The member opposite knows that in the next few weeks the NBN’s long-term business plan will be complete. He also knows that we will reach the halfway mark for the construction of regional backhaul links—the infrastructure that we need to roll out the information highway right across the country.

He again raises Infrastructure Australia. All I can do is point to a document which has been published and tabled in this parliament, the May 2009 report titled National infrastructure priorities: infrastructure for an economically, socially and environmentally sustainable future, a comprehensive document produced by Infrastructure Australia under its chairman Sir Robert Eddington. The report, when discussing Australia’s national infrastructure priorities, goes through seven. The first is a national broadband network—developing a more extensive, globally competitive broadband system. Indeed on page 13 of that report Infrastructure Australia recommended—and this was certainly taken up by the government—an investment from the Building Australia Fund to develop the National Broadband Network. They identified this as one of the seven priorities because they understood what an enabler of future infrastructure it was. But it is not just them. A member of this House wrote:

Equally importantly, there would be continuing ferment of innovations. With multiple service providers able to deliver services over the new network, there would be new ideas emerging all the time, including many attractive choices which are not available today.

That is a very insightful analysis from the shadow shadow minister for communications, the member for Bradfield, published in his book—a direct quote from his book Wired Brown Land.

The opposition also say the parliament has not had time to scrutinise this. What do they think the Senate inquiry on NBN did all that time? It was extended five times and produced five reports. We have seen Senate committees on NBN-related bills and a discussion paper on regulatory reform and we have debated this issue constantly in parliament since prior to the 2007 election. That 2007 election was when we went to the Australian people with a plan for national broadband, because we said that the 18 plans, failed and abandoned one after the other by the coalition government, were simply not good enough. And the Australian people agreed with us and they elected Labor to office, just as the independent members had the National Broadband Network very much front and centre when they determined to ensure that Julia Gillard was in a position to become Prime Minister after the 21 August election.

This government is working hard to get the policy settings right for a competitive modern economy. Just last week we introduced into the parliament the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2010, again providing for structural separation—a job that should have happened when Telstra was privatised. But those opposite—in spite of the fact that some who are now opposite recognise that this is important, and I note the member for Wentworth seems to be hedging his bets and hopefully supporting this legislation—have been gradually crabwalking across to reality on the importance of structural separation. There will be an opportunity to do what should have been done many years ago.

The fact is that the National Broadband Network is absolutely critical to our future productivity. ICT is the number one way of improving productivity for the service industry and the manufacturing sector. This NBN will support 25,000 jobs a year, on average. It will provide great choice and lower prices for consumers because of the way it is structured, providing a wholesale network and then allowing a multiplicity of retailers to build on the basis of that wholesale network. It will deliver health consultations and specialist advice in real time, and an example of this is our $392 million plan to give rural and regional Australia access to online specialist consultations. It will allow businesses in regional communities to effectively service their local and international customers. It will be vital in the delivery of smart infrastructure, and during the election campaign I announced on behalf of the government at the Infrastructure Partnerships Australia conference in Melbourne that we would regard smart infrastructure as a necessary component of future infrastructure investment.

Take urban congestion. Our investment in the Kwinana Freeway in Perth, with the installation of advanced technologies like variable speed limits and real time lane management systems, will optimise traffic flows, improve road safety and reduce emissions. This is vital, and that is why before the election I referred the smart infrastructure reference to the House of Representatives Standing Committee on Infrastructure and Communications, chaired by Ms Sharon Bird, the member for Cunningham. Or take smart energy meters, that give you an informed choice of energy source, price tariff, emissions intensity or just-in-time hot water heating. This technology will transform innovation. Associate Professor Robert Malaney, of UNSW, recently said:

If 90% of homes are connected to the NBN it will cause a paradigm shift with new ideas and innovations, things we haven’t even thought about yet.

The fact is that those opposite have had 19 failed broadband plans. They said to wait for the ACCC advice, they said to wait for the implementation study, they said to wait for the government response to the implementation study and they filibustered the very bill on competition reform that was going to ensure a faster, cheaper and more efficient rollout of the NBN. It is six months since the implementation study was released and the coalition simply have not moved on beyond their policy of seeking to demolish the NBN. The member for Wentworth refuses to say whether he would back the NBN in, regardless of anything any study said that would delay the system.

We know that from time to time those opposite deny that there is a problem. The member for Wentworth has said:

The NBN is an answer to a problem that has not even been identified …

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