House debates

Thursday, 5 June 2014

Bills

Infrastructure and Regional Development Portfolio

11:48 am

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Minister for Communications) Share this | Hansard source

The funding announced in the budget for the communications portfolio will support the promotion of an innovative and competitive communications sector in Australia. Through the 2014-15 appropriation bills, the government will provide the portfolio with more than $7 billion to deliver its priorities. This includes $6.8 billion to the Department of Communications to provide for an equity injection to the NBN Co of up to $5.2 billion, including $2 billion from prior years; $238.6 million for the department to deliver its outcomes; $1.1 billion, through the department, to the Australian Broadcasting Corporation; $287.1 million, through the department, to the SBS; $96.9 million to the ACMA; and $100 million to TUSMA.

The government is providing $110 million in new funding to the department over the next four years for the following measures to implement our election commitments: $100 million to the Mobile Black Spot Program to improve mobile coverage in outer metropolitan, regional and remote areas of Australia, and $10 million to the enhance online safety for children initiative. Enhanced online safety will be achieved through assisting schools to access accredited online safety programs; establishing the office of the children's e-safety commissioner, who will take a leadership role in online safety; and supporting Australian based research and information campaigns on online safety.

Additionally, the Office of Spatial Policy and TUSMA functions will be transferred into the department. These funding increases are offset, in part, by an efficiency dividend of $2 million applied to the department over the next four years. The government will provide $5.5 billion over the next four years to the national broadcasters—$4.4 billion to the ABC and $1.1 billion to the SBS. The 2014-15 budget includes a one per cent efficiency saving on the national broadcaster's operational budgets, excluding transmission and distribution services, raising $43.5 million over the next four years, of which $35.5 million is for the ABC and $8 million is for the SBS. The savings realised through this measure will be considered a down payment on efficiencies identified in the context of the ABC and SBS efficiency study, widely known as the Lewis review.

The exact implementation of the savings arising from this measure will be determined by the boards and executives of the national broadcasters. The government expects that these efficiencies can be achieved without cutting the diverse range of programs and services being offered by the national broadcasters or affecting their editorial independence.

The government will provide $360.7 million over the next four years to the ACMA, the regulator of the communications sector. In 2014-15 the ACMA's funding has been reduced by a one-off one per cent efficiency saving, saving $3.3 million over the next four years. This efficiency saving recognises that, as regulation is removed and simplified in the coming year, costs should also decrease for the regulator. The ACMA's funding has also been reduced by an efficiency dividend of $2.1 million over the next four years.

Turning to TUSMA, the government announced in the budget that we will abolish TUSMA and transfer its functions to the department. This decision will increase industry certainty by having a single agency responsible for policy implementation of telecommunications universal service matters. TUSMA is a very small agency, and bringing the role into the department will help streamline the delivery of government services.

Efficiencies from the merger will result in savings to the telecommunications industry of $1 million per annum through a reduction to the telecommunications industry levy. The government will bring forward legislation to repeal the TUSMA Act and transfer responsibility for TUSMA's contracts, finances and levy collection obligations to the department.

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