Senate debates

Tuesday, 11 May 2010

Questions without Notice

National Broadband Network

2:51 pm

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. Can the minister advise the Senate on the implementation study that was released last week? What are the key findings of the report in relation to the government’s plan to roll out the National Broadband Network?

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

I thank Senator Bishop for his ongoing interest in this portfolio area. The NBN is an historic nation-building project, the positive economic and social effects of which will be felt for generations to come. Last week we released in full the implementation study into the NBN. This study was undertaken by McKinsey and Co. and KPMG. It is highly rigorous and detailed, at over 500 pages and with 84 recommendations for government. It covers a range of critical areas including issues around the technology, financing, ownership, policy framework and future market structure.

The study confirmed that high-speed broadband over a wholesale-only network for all Australians is achievable and can be built on a financially viable basis with affordable prices for consumers. In fact, the study finds that in a number of areas it is possible not only to meet but also to exceed the government’s original objectives. It finds that the original $43 billion total capital cost estimate is conservative and at the high end of the plausible range and identifies a number of opportunities to reduce the bill’s cost. It recommends taking the fibre footprint further than the government originally intended from 90 to 93 per cent and covering the 1.3 million new premises expected to be built to 2017-18. In effect this means the study recommends taking fibre to an extra 1.6 million premises. (Time expired)

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate what the reaction has been to the release of the NBN implementation study? Has the report been welcomed by industry and consumer groups around Australia?

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

The release of the implementation study has been widely welcomed across the industry and by consumer groups. For example, Optus CEO Mr Paul O’Sullivan said on the day of its release:

With the release of the NBN Implementation Study, we are now on a path to building a world class broadband network, a network that will ensure Australia’s place in the leading economies of the world.

Mr Allan Asher, CEO of the Australian Communications Consumer Action Network, said:

What Australians need from the NBN is improved accessibility, affordability and availability of communications services and the study’s findings support this becoming a reality.

Intel General Manager Philip Cronin said:

This is the utility of the 21st Century and is as important to our future economy as transport infrastructure is today.

(Time expired)

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask the minister a further supplementary question. Given the importance of high-speed broadband for strengthening the Australian economy and providing critical infrastructure for consumers, small business and our regional areas, is the minister aware of any alternative policies to deliver enhanced broadband for all Australians?

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

Regrettably I must advise the Senate that I am not aware of any alternative policies to ensure that all Australians have access to high-speed broadband. Even before the implementation study was released the opposition announced they would scrap the NBN. This took opposition for opposition’s sake to a whole new level. After two-and-a-half years in opposition those opposite still do not have an alternative broadband plan, which is no surprise, given they are on their third shadow minister. The opposition plan to stop building the NBN would risk Australia’s economic future. The NBN is crucial economic infrastructure. Without it Australian companies will not be able to compete with the likes of Japan, South Korea and Singapore. (Time expired)