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

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. How can the government possibly justify a salary of nearly $40,000 a week to the CEO of a government company, currently called NBN Co., that at the moment has no employees, no customers, no revenue, no business plan and whose existence is subject to the outcome of the government’s implementation study?

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

I thank Senator Minchin for that question. As he has indicated, the government has established a company—NBN Co. Ltd—that will invest up to $43 billion over eight years to build the National Broadband Network. It is the single largest infrastructure investment in Australia’s history. The company was incorporated on 9 April 2009 as a wholly Commonwealth owned public company, limited by shares, following the government decision on the NBN on 7 April. On 25 July the government announced that Mr Michael Quigley had been appointed as Executive Chairperson and CEO of NBN Co. Mr Quigley is an appointment of outstanding quality and, as had been indicated—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Has won the lottery!

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

Mr Quigley has had a distinguished 36-year career at Alcatel, one of the world’s largest telecoms, technology and network deployment companies. He was most recently president and chief operating officer of the company, leading more than 55,000 staff and responsible for operations in 130 countries. During the course of his career, Mr Quigley has led the development and integration of large-scale fibre-to-the-premise and fibre-to-the-node implementations for some of the largest US carriers. During his career, Mike has managed the acquisition of numerous technology assets and knows how to value such assets. (Time expired)

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

Mr President, I ask a supplementary question. Minister, why are taxpayers being forced to pay no less than $46,000 a week for the chairman and directors of NBN Co. when they are already paying at least $480,000 per week for an implementation study, which may well find that the proposed NBN should be abandoned?

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

As has been indicated, Mr Quigley and the board have extensive experience in regulatory issues and telecommunications standard setting. Mr Quigley, as has been indicated, will receive a total remuneration of a maximum of $1.95 million per annum, with no long-term incentive or equity based remuneration. Senator Minchin continues to carp and run a policy-free zone. If you want to ask, ‘How does someone justify their collecting a cheque?’, Senator Minchin—the policy-free zone—could answer that question for himself. I note that other Liberals understand the need for an experienced and qualified person to run NBN Co. On Lateline last Friday, Mr Tony Abbott stated— (Time expired)

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

Mr President, I ask a further supplementary question. Minister Conroy, given that NBN Co. currently has absolutely no earnings or revenue whatsoever, where exactly is the $46,000 per week coming from?

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

As I was saying, Mr Tony Abbott said on Lateline on Friday night—

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

Mr President, I rise on a point of order relating to relevance. The minister may want to continue his answer to the previous question. This is a new question. I did not ask him about Mr Abbott. I asked him where the $46,000 per week is coming from.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I submit that there is no point of order. The minister had six to seven seconds to begin his answer when a point of order was taken. And while Senator Conroy can, on occasion, speak quite quickly, he clearly had no time in which to answer the question and there is no point of order.

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, you have been answering for seven seconds, according to my clock. You have 53 seconds remaining to answer the question.

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

On Friday night Mr Abbott did have some things to say about this very matter. He stated:

But I guess, in the end, if he does a very good job and we do get a national broadband system that does dramatically improve the current situation, I suppose he’ll be worth every bit of it.

That is Mr Tony Abbott: ‘Worth every cent of it.’ Mr Abbott has got this right: Mr Quigley will be worth every cent of his package.

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

I rise on a point of order. The minister now has only 23 seconds to answer. This is a serious question. I want to know where the $46,000 per week for the chairman and directors is actually coming from, given that in government business enterprises the chairman and directors are paid out of earnings. This company has no earnings, so where is the $46,000 coming from? He has got 23 seconds.

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, you have 23 seconds to address the question that has been asked by Senator Minchin. You need to address the question.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Senator Ian Macdonald interjecting—

John Hogg (President) Share this | Link to this | Hansard source

I am giving a ruling, Senator Macdonald.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

I rise on a point order on your ruling, Mr President. Senator Minchin took a point of order. Simply saying, ‘The minister has 23 seconds’ is not a ruling on the point of order. You do that quite regularly, Mr President. I just say that, where a point of order is taken, you must rule whether it is valid and accepted or whether it is not a point of order and reject it.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order. Senator Conroy, I have drawn your attention very clearly to the question that was asked by Senator Minchin and to the fact that you have 23 seconds remaining to answer the question that has been asked by Senator Minchin.

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

Thank you. Senator Minchin was asking about both the board and Mr Quigley. So let me be clear—

Opposition Senators:

Opposition senators interjecting—

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

He was asking about their remuneration. The Remuneration Tribunal has set the board fee at $90,000. So it has—

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

You didn’t have to accept that; it was a recommendation.

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

It has recommended; I am happy to— (Time expired)