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

My question is to Senator Conroy as the Minister for Broadband, Communications and the Digital Economy. Is the minister aware of the growing chorus of criticism directed at Labor’s National Broadband Network from people like Professor Paul Kerin, the OECD and internationally recognised experts in the field, such as Mexican telecommunications tycoon Carlos Slim Helu and Japanese internet industry leader Masayoshi Son, who said that the NBN could be built by private enterprise without the government having to dip into its dwindling resources? Is the minister also aware that these experts believe that the estimated cost of $7,000 per household to provide broadband services is far too high and that the government should consider adopting a multiplatform approach? Minister, why is it that all of these experts are wrong and only you are right?

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

I thank Senator Macdonald for his ongoing interest. It is important for those opposite to read all of the OECD report and not just selectively quote it. The report released by the OECD yesterday concludes that the National Broadband Network has the potential to yield substantial benefits, especially in terms of productivity, and that it will improve internet services for the entire population—something those in the far corner used to believe in—and will promote fairer competition between private firms on retail services. The OECD states that the National Broadband Network is a far-reaching reform project that has been undertaken to fill the gaps in the broadband internet sector.

Through the NBN the Gillard government is ensuring that every Australian, no matter where they live, has access to affordable high-speed broadband. This was confirmed by the OECD’s report which again, if you do not take selective quotes, states that the NBN will avoid the risk of a geographic digital divide as it will cover the entire population, whereas if it were done by the private sector it would be done more gradually and only to the most densely populated areas. I recommend it to you, Senator Joyce. The OECD report also outlined that recent research suggests that the use of the new network can bring large savings, between 0.5 per cent and 1.5 per cent of GDP, to the cost of public services over a 10-year period in just four areas—health care, education, transport and electricity—which on its own would warrant the construction. So the OECD says that just in those four sectors— (Time expired)

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

Mr President, I ask a supplementary question. Is the minister aware of the recent statement by Councillor Annie Clarke, Mayor of the Burke Shire Council in the Gulf of Carpentaria, that broadband was wasted in the gulf where residents are screaming out for basic services such as reticulated electricity, roads and mobile phone services? Minister, can you go up there and explain to these people why your government is about to splurge $43 billion on this much maligned NBN in preference to providing basic infrastructure services? (Time expired)

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

I am prepared to listen to the Mayor of Barcoo Shire, Mr Bruce Scott, who says, ‘We want fibre to these small communities.’ His communities are begging, crying out and campaigning to ensure that they get fibre—and this is a National Party council. They are demanding that they get fibre. They do not want the opposition’s mickey mouse wireless network. I repeat for those who want to listen that in just the four areas of health care, education, transport and electricity there will be a 0.5 per cent to 1.5 per cent improvement in GDP from building the National Broadband Network. So in all of those areas that the mayor you referred to is expressing concerns there is concrete support from the OECD which says that building the National Broadband Network will benefit health, will benefit education, will benefit electricity and will benefit transport. (Time expired)

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

Mr President, I ask a further supplementary question. The minister’s arrogance is surmounted only by the government’s waste of $43 billion. I wonder if the minister understands the mounting criticism of the $43 billion white elephant. Is the minister’s refusal to ask the Productivity Commission to conduct a cost-benefit analysis yet another sign that he is not only out of step with telecommunications experts but also out of his depth?

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

To draw on the question: I was lucky enough to recently travel to Mexico, the land of Mr Slim’s wonderful monopoly that he has run so effectively to make himself the world’s richest man. I have to tell you that I prefer our telecommunications system and how it works to Mr Slim’s any day of the week. I invite you to go to Mexico and try it yourself, Senator Macdonald. When it comes to the question of trying to find a new cloak to hide behind to delay rolling out to residents of Townsville, residents of Willunga, residents in Tasmania, residents in Kiama Downs and residents in Armidale, who have signed up in droves to get the National Broadband Network’s fibre-optic connection—87 per cent in Armidale, 84 per cent in Willunga and it goes on and on— (Time expired)