House debates

Thursday, 18 November 2010

Questions without Notice

Broadband

2:47 pm

Photo of Julia GillardJulia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

To the Leader of the Opposition I would say: just because you make something up does not make it true. Your contention about pricing is wrong. Can I say to the Leader of the Opposition: I understand, coming from across the political divide, he may not want to take advice from us, but perhaps at some point he should talk to people with expertise in this industry. I refer him, for example, to Paul O’Sullivan, the Optus CEO, who says—and it goes directly to the question of price:

Optus is supportive of the government’s bold plans to create a single wholesale network which will bring high-speed broadband, cheaper pricing and choice to all 22 million Australians.

The Optus CEO—would he know something about pricing in telecommunications? He goes on:

I would urge all sides in this debate now to rise above politics and do what it takes to ensure that all Australian consumers and businesses can benefit from real competition in fixed line for the first time.

The Leader of the Opposition may have been misadvised. He may have got these erroneous facts into his head. It is time for him now to actually do some patient work and to look at the National Broadband Network, to look at what experts are saying about it, to look at the fact that Australians pay high prices for broadband and to look at the fact that the industry is telling us—and the Tasmanian example bears it out—that by creating a model with retail price competition you get cheaper prices, because that is what competition is all about. Surely the man who is the CEO of Optus would know something about price competition, and that is what he has said. Of course, I could refer the Leader of the Opposition to many others in the industry who have made comparable statements about the National Broadband Network.

The premise of the Leader of the Opposition’s question is wrong. Consequently, the conclusion he is seeking to found on that premise is wrong. He is acting to deny the benefits of competition in telecommunications. I always thought—

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