Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I am delighted that Senator Ronaldson is paying such close attention to proposals for broadband fibre networks throughout Australia, especially a fibre network to provide high-speed broadband throughout Australia. There are currently three proposals to establish a high-speed broadband network in Australia: two proposed by the private sector—Telstra and the G9 group of telecommunications companies—and a third proposed by the Australian Labor Party.

As we know, Telstra have been examining options for a rollout of fibre optic cable to provide broadband internet throughout the metropolitan and outer metropolitan areas of Australia. Telstra’s sticking point is that they want to ensure a commercial return on their investment—and I agree with them, because such an investment does merit a commercial rate of return. The G9 is a consortium of leading telcos, including Optus, AAPT, Macquarie Telecom, Soul, Primus Telecom and others. The G9’s fibre proposal has progressed to a stage where they are close to formally submitting it to the ACCC to agree terms of access. Both of these proposals would see a multibillion-dollar investment by the private sector for a rollout to the capital cities initially, followed by major regional centres.

The third proposal is that of the Labor Party to smash and grab almost $3 billion from the Future Fund, to abolish the coalition’s $2 billion regional communications fund for the bush and to scrap the government’s $600 million investment in wireless internet infrastructure in rural and regional areas and then to construct a one-size-fits-all fibre rollout for 98 per cent of the population for $8 billion, which is financially impossible and economically irresponsible. The question has to be: why is the Labor Party so hell-bent on a wasteful and reckless handout of billions of dollars of taxpayers’ money when there are two viable, achievable private sector options on the table for commercial areas which would effectively provide the same coverage with no taxpayer expense?

While this side of the Senate is strongly committed to the rollout of true broadband across the nation, our approach is that, if private investment can do it in commercial areas, then it should do it and the burden should not be on the taxpayers’ backs. People should not be fooled into believing that Labor’s $4.7 billion raid on the Future Fund and dudding the regional communications fund are going to result in some enormous money flow. It will run at a loss like every other Labor investment does. If Labor think they are going to get such a solid commercial return on a $4 billion spend, why hasn’t the industry proposed to do it? It is a question the Labor Party have to answer. The answer is that it is not commercial to go out to 98 per cent with fibre, nor is it possible for $8 billion.

The Labor Party cannot walk both sides of the fence on this. Either it is a commercial proposition with a revenue stream or it is a case of market failure. It cannot be both. Worse still is that it will be a commercial enterprise run by a Labor government. Let us not beat around the bush here: everyone knows that Labor governments are no good at running commercial enterprises. The government is committed to providing high-speed broadband across the country, targeted investment to reach 100 per cent of the population and a new infrastructure build in rural and regional Australia. Labor on the other hand has a proposal whereby it has abandoned its principles on Telstra, it has ditched its support for competition, it has raided the Future Fund and it has reverted to what it knows best: voodoo economics. (Time expired)