Senate debates

Wednesday, 26 November 2008

Questions without Notice

Broadband

2:18 pm

Photo of Scott LudlamScott Ludlam (WA, Australian Greens) Share this | | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. I refer to the government’s national broadband network tender process and associated issues for end users of the network, which has been significantly shaped by the previous government’s decision to privatise what is fast becoming an essential service. The winner of the tender to build the national broadband network will have control of what is essentially a natural monopoly. Given the high degree of concern expressed in the telecommunications industry about monopolistic and litigious practices by Telstra, will the minister consider in your deliberations the possibility of public ownership of the national broadband network so that the public interest is prioritised at all times over the interests of shareholders?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I thank Senator Ludlam for that question and for his indication that he would be asking questions on these broad issues. I do appreciate that.

Photo of Alan FergusonAlan Ferguson (SA, Deputy-President) Share this | | Hansard source

Senator Ferguson interjecting

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I thought that that was actually your proposal, Senator Ferguson.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Conroy, just address Senator Ludlam’s question.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I apologise. The Deputy President is interjecting very rudely and I was distracted by him! Senator Ludlam is actually trialling what you wanted, Senator Ferguson.

When the government established the national broadband network process, it indicated that its preference was for an equity contribution of $4.7 billion. Depending on the final size of the network, that could be 50 per cent or it could be 30 per cent. That is actually stated in the RFP. That is in actual fact our preferred model, but we are prepared to consider other models. We have always made it clear that we believe that there is a role for the federal government. That contrasts to those opposite who, for many years, apart from 18 pork barrel efforts, completely and utterly rejected any public participation in the telecommunications sector. Your predecessors, Senator Ludlam, and mine all voted against the privatisation of Telstra. It was a great disappointment that those opposite chose to go against the will of the majority of Australians by privatising Telstra. We have made it clear in the RFP process that we are prepared to consider this as one of the options. In fact, we expressed it as our preferred option. Let me be clear about this: we have put forward $4.7 billion to deliver the necessary outcomes for the benefit— (Time expired)

Photo of Scott LudlamScott Ludlam (WA, Australian Greens) Share this | | Hansard source

Mr President, I thank the minister for the answer and I ask a supplementary question. My supplementary question goes to the end users issues which I foreshadowed. Can the minister tell us the status of the new consumer protection body, the Australian Communications Consumer Action Network, in particular what date it will be established, who is on it and what role this network will play in the deliberations on the national broadband network tender?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

The government has already taken active steps to improve the level of consumer representation in the telco sector. Unlike the previous government, we actually care what consumers and their representatives think. Better representation and a stronger voice for consumers lead to better consumer outcomes. However, for many years the consumer voices have been somewhat fragmented. Earlier this year, after extensive consultation with the sector, we supported the establishment of a new national peak body to provide telecommunications consumers with a stronger, unified voice. This body, the Australian Communications Consumer Action Network, ACCAN, has already established its founding board and constitution. This is an important development for consumers, who, through this new group, will have a more powerful voice. They will be better represented in the establishment— (Time expired)

Photo of Scott LudlamScott Ludlam (WA, Australian Greens) Share this | | Hansard source

Mr President, I ask a further supplementary question. Perhaps the minister could take this on notice. My question was specifically on what role this network will be playing as the tender process unfolds. Further to that, given that the operator of the network will, in effect, have control over a natural monopoly and that Telstra has indicated that it wants an 18 per cent return on investment, which according to some commentators could raise broadband prices by 50 per cent per month for users, what measures will be taken to protect consumers from price-gouging, particularly in regional areas?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I will happily get you the rest of the information on ACCAN. I think you asked for its membership as well. There is no more important outcome than delivering faster, cheaper broadband to Australians. For 12 years, those opposite just did not get it. They did not understand the transformation that is taking place. They are happy now to retreat back to the old arguments and the old debates. Let me be clear: we are determined to deliver faster and cheaper broadband. We are putting in place, as part of the RFP—it is there in the documents, which people have submitted against today—that they have to—

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | | Hansard source

Telstra haven’t.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

You can continue to believe what you like, Senator Minchin, but I quoted to you exactly, word for word—

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Conroy, ignore the interjections.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I accept your admonishment. We have put in place a range of measures in the RFP to ensure those outcomes. I am sure, as you would understand, that those opposite— (Time expired)