Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Hansard source

by leave—I move Labor amendments (1) to (10), on sheet 8878, to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019:

(1) Clause 2, page 2 (table item 1), omit "Sections 1 to 4", substitute "Sections 1 to 5".

(2) Page 3 (after line 23), after clause 4, insert:

5 Modelling of Regional Broadband Scheme

Report

  (1) The Australian Competition and Consumer Commission (ACCC) must prepare a report in relation to the Regional Broadband Scheme that includes:

     (a) the estimates referred to in subsection (3); and

     (b) such other matters (if any) as the ACCC considers relevant.

  (2) The purpose of the report is to provide updated costings in relation to the amount of the base component specified in paragraph 12(1)(a) of the Regional Broadband Scheme Charge Act, using the same model and methodology that was previously used to determine that amount but taking into account changes to inputs and assumptions that have occurred since that amount was first determined.

  (3) The report must include an estimate of each of the following:

     (a) the total losses that have been incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2020;

     (b) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2040 (the total expected net losses);

     (c) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

     (d) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2020 and ending on 30 June 2040 (the totalexpected net forward facing losses);

     (e) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net forward facing losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

     (f) the total expected number of chargeable premises by reference to which charge is to be calculated under the Regional Broadband Scheme Charge Act during the financial year beginning on 1 July 2025;

     (g) such other matters (if any) as the ACCC considers relevant.

Note: For paragraph (f), see section 11 of the Regional Broadband Scheme Charge Act in relation to how numbers of chargeable premises are used in calculating charge under that Act.

  (4) The report must specify the aggregated data inputs and the modelling assumptions upon which the estimates referred to in subsection (3) were determined.

  (5) In preparing the report, the ACCC:

     (a) must use the methodology and model that was used by the Department of Communications and the Arts' Bureau of Communications Research for the report entitled NBN non-commercial services funding options—Final report March 2016; but

     (b) must, in doing so, update the inputs and assumptions of the methodology and model to reflect changes that have occurred since the publication of that report.

  (6) Without limiting paragraph (5)(b), the following are changes that must be taken into account in updating the inputs and assumptions:

     (a) changes in the inputs for estimating the total number of chargeable premises by reference to which charge is imposed by the Regional Broadband Scheme Charge Act;

     (b) changes in the inputs for build costs in relation to fixed wireless broadband and satellite broadband matters;

     (c) changes in the inputs for estimating future capital expenditure requirements in relation to fixed wireless broadband and satellite broadband matters.

  (7) In preparing the report, the ACCC must assume that Division 6 of Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 had not been enacted.

Note: That Division deals with charge offset certificates.

  (8) Before the end of the 150-day period beginning when this section commences, the ACCC must:

     (a) give the Minister the report; and

     (b) make the report available on the ACCC's website.

  (9) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 5 sitting days of receiving it.

Use of the word " Regional "

  (10) To avoid doubt, the use of the word "Regional"in this section does not limit:

     (a) subsection 80(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999; or

     (b) subsection 13(3) of the Regional Broadband SchemeCharge Act.

Definitions

  (11) In this section:

fixed wireless broadband and satellite broadband matters means the matters referred to in paragraphs 13(3)(a) to (d) of the Regional Broadband Scheme Charge Act.

Minister means the Minister administering the Telecommunications Act 1997.

NBN Co has the same meaning as in the National Broadband Network Companies Act 2011.

Regional Broadband Scheme means the scheme embodied in:

     (a) Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999; and

     (b) the Regional Broadband Scheme Charge Act.

Regional Broadband Scheme Charge Act means the Telecommunications (Regional Broadband Scheme) Charge Act 2020.

(3) Schedule 5, item 1, page 197 (after line 17), after subsection 98B(1), insert:

  (1A) NBN Co must:

     (a) provide to the Secretary the following mapping data about each national broadband network serving area module:

  (i) the boundaries and identification code for the national broadband network serving area module;

  (ii) the dominant technology type of connections to the national broadband network within the national broadband network serving area module;

  (iii) the date on which the majority of premises within the national broadband network serving area module were declared ready for service by NBN Co; and

     (b) do so within 150 days after the Secretary gives a direction to NBN Co under subsection (4).

(4) Schedule 5, item 1, page 197 (after line 29), after subsection 98B(2), insert:

  (2A) The Secretary may, by written notice given to NBN Co, direct NBN Co to:

     (a) provide to the Secretary the following mapping data about each national broadband network serving area module:

     (i) the boundaries and identification code for the national broadband network serving area module;

  (ii) the dominant technology type of connections to the national broadband network within the national broadband network serving area module;

  (iii) the date on which the majority of premises within the national broadband network serving area module were declared ready for service by NBN Co; and

     (b) do so within 90 days after the Secretary gives the direction to NBN Co.

(5) Schedule 5, item 1, page 198 (line 2), omit "subsection (1) or (2)", substitute "subsection (1), (1A), (2) or (2A)".

(6) Schedule 5, item 1, page 198 (line 8), omit "subsection (1)", substitute "subsection (1) or (1A)".

(7) Schedule 5, item 1, page 198 (line 15), omit "subsection (2)", substitute "subsection (2) or (2A)".

(8) Schedule 5, item 1, page 198 (line 22), omit "subsection (2), (4) or (5)", substitute "subsection (2), (2A), (4) or (5)".

(9) Schedule 5, item 1, page 198 (after line 27), after subsection 98B(7), insert:

  (7A) Before the end of the 30-day period beginning on the day on which the Secretary is provided the mapping data under subsection (1A), the Secretary must arrange for the mapping data to be made available on the National Map website (https://nationalmap.gov.au) in colour-coded format.

(10) Schedule 5, item 1, page 198 (after line 29), insert:

national broadband network serving area module means a geographical region within NBN Co's fixed-line footprint which includes premises that are:

     (a) connected to the national broadband network; and

     (b) served by any of the following technology types of connection to the national broadband network:

     (i) fibre to the building;

  (ii) fibre to the premises;

  (iii) fibre to the node;

  (iv) fibre to the curb;

  (v) HFC.

Labor's amendments to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019, as outlined on sheet 8878, seek to achieve two things. First, on the topic of the modelling underpinning the charge, there does remain scope to improve transparency around the charge level, and there is broad agreement that the modelling undertaken in 2015 is based on inputs and assumptions that are no longer accurate. Given the government has not acted on the agreed joint standing committee recommendation of 2018 to update the model, these amendments propose that the levy modelling be updated and a report outlining certain matters be produced and published within 150 days. The responsibility for this task will be placed in the hands of the ACCC.

The purpose of the report is to provide updated costings using the same model and methodology developed by the Bureau of Communications Research in 2015, while taking into account changes to inputs and assumptions that have occurred since the levy charge amount was first determined. Some examples of inputs that are known to have changed are costs to deploy the fixed-wireless network and the number of premises over which the levy charge might be spread. We do not consider updating the model will be a complex exercise, given a model has already been developed and updated data inputs are available.

Should the Senate carry this amendment, we understand the government will propose a further amendment to give the ACCC power to seek information from NBN Co and other carriers to support their efforts to update the model. Labor supports that amendment. The amendment also proposes that the updated costings produced by the ACCC provide a breakdown for the proportion of the levy charge from costs which are already sunk and the proportion of the levy charge that derives from forecast future costs.

The second aspect of the Labor amendments is to improve NBN rollout data on the NationalMap website. This builds on an existing ALP amendment from the previous term of parliament to make rollout data available on the NationalMap. I want to acknowledge the government has incorporated that amendment into this reintroduced bill, and this amendment before the Senate today is a further supplement to that. These are reasonable and constructive amendments that seek to improve the bill. We hope they receive the support of the Senate on their merits.