Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. I refer the minister to the government’s announcement in relation to the National Broadband Network on 7 April 2009. Can the minister outline to the Senate some of the economic benefits that will result from the government’s investment in a national broadband network?

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

Thank you, Mr President, and welcome back safely from Mexico, can I say on behalf of the whole chamber. The National Broadband Network is nation building for the 21st century. It will transform the Australian economy in the same way that rail and electricity networks transformed Australia in past centuries.

A recent report by Access Economics found that the national high-speed broadband network will positively impact our economic performance and lead to economy-wide productivity growth that would be 1.1 per cent higher after 10 years compared to what it would be if the network were not built. A report by the Centre for International Economics in November 2008 said that broadband could lift national economic output by 1.4 per cent after five to six years. This is equivalent to $15 billion in GDP in 2007-08. Compare that with the GST, which was championed by the Howard government on the basis that it would add to GDP growth by 0.5 per cent. The great economic reform put forward by those opposite—0.5 per cent.

The Rudd government understands that its investment in the National Broadband Network will create jobs and drive productivity today and into the future. It will create new efficiencies and sustainability. It will improve the availability of emerging services and applications in areas such as health care and education. It will position Australia to take advantage of the global recovery when it comes. Meanwhile, the Leader of the Opposition—(Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I ask whether the minister is aware of comments by Optus CEO, Paul O’Sullivan, who, in relation to the NBN announcement, stated:

The Government’s new model has the potential to fundamentally change the competitive landscape and create a true level playing field. This is a very positive outcome for consumers and business right across the country.

Can the minister inform the Senate what the reaction of other key industry stakeholders has been to the government’s NBN announcement on 7 April?

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

Yes, it is possible to outline some of the reaction from the industry, but that would be in stark contrast to what those opposite have said. The Leader of the Opposition said he was happy that he could already download his movies in one to two seconds. That was the entire thinking behind the position of those opposite on this: ‘I am happy I can download my movies fast enough. Don’t worry about everybody else; don’t worry about regional Australia. In Wentworth I can download my movies as fast as I want them.’ It is fair to say that the reaction of the industry to the National Broadband Network has been overwhelmingly supportive. I will take this opportunity to inform the Senate of some comments from key industry representatives. Take iiNet Managing Director, Michael Malone, who stated: (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

I thank the minister for his answer so far, and I ask a further supplementary question. On 6 February 2009, prior to the National Broadband Network announcement, the Leader of the Opposition, Mr Turnbull, stated:

… the infrastructure that will give you the best return is economic infrastructure that will make the economy more efficient, more productive and you know grow more strongly. … that is investment in communications …

Can the minister therefore advise the Senate if investment in productive economic infrastructure like high-speed broadband is widely recognised as a critical way to ensure Australia’s prosperity?

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

While the industry and government clearly understand that productivity gains result from high-speed broadband access, the opposition can only be described as confused. As the senator noted, prior to the NBN announcement, the Leader of the Opposition—

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

Senator Minchin interjecting—

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

You just keep hugging those nodes! The Leader of the Opposition said that investment in productive economic infrastructure like communications was vital. Following the NBN announcement, Mr Turnbull backflipped, criticising the government for investing in high-speed broadband infrastructure and describing the NBN as a monumental policy failure. So now the opposition appear to agree with investment in productive infrastructure but oppose investment in high-speed broadband. In his speech to the National Press Club on 6 May 2009, Malcolm Turnbull stated:

Debt which is incurred to fund investment in infrastructure that increases the productivity of Australia will, in time, pay for itself …

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