Senate debates

Monday, 17 June 2013

Committees

National Broadband Network Committee; Report

5:45 pm

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party) Share this | | Hansard source

On behalf of the Joint Committee on the National Broadband Network I present the fifth report of the committee and seek leave to move a motion in relation to the report.

Leave granted.

I move:

That the Senate take note of the report.

I present the fifth report of the Joint Committee on the National Broadband Network, entitled Review of the Rollout of the National Broadband Network. This covers the period 1 July to 31 December 2012, as well as other current issues reported after this period. During its fifth review, the committee examined: the NBN rollout of fibre, fixed wireless and satellite services; performance reporting; the potential of private equity to fund the NBN; and Telstra workforce issues associated with the retraining funding bid under the Telstra agreement.

The committee made five recommendations. Chapter 1 sets the scene for the fifth review and provides commentary on the timing and quality of information provided to the committee. Chapter 2 provides analysis of the NBN rollout key performance indicators, an overview of the remaining regulatory matters associated with the ACCC's consideration of the NBN Co. special access undertaking, continued discussion on the connection of multidwelling units to the NBN and an overview of matters relating to the costing of alternative NBN models. Chapter 3 of the committee's report looks at the NBN rollout in regional and remote Australia. A combination of the three NBN technologies—fibre, fixed wireless and satellite—will be rolled out to regional and remote communities. This provides significant opportunities for communities in regional Australia. The committee was therefore interested in how NBN is balancing construction of the network across metropolitan and regional locations. The committee felt it would be useful to hear more about the regional aspects of the rollout and made a recommendation to that effect.

The committee was also interested in the rollout of the fixed wireless and satellite networks in regional and remote Australia. It noted that in February 2013, NBN Co. announced plans for a new, faster tier that is 25 megabits down and five megabits up for its fixed wireless and long-term satellite services for regional and remote communities. This is a quantum leap in service delivery for regional and remote Australia. It means that regional and rural Australians can access higher speeds than anyone in metro Australia can over the ADSL network.

Chapter 4 considered private equity engagement and workforce issues. The committee has investigated the points of entry for private investment in the NBN in all five of its reports to date. The committee recommended the government continue to consider investor interest in the NBN and the optimum capped capital structure for NBN Co. On the matter of NBN workforce issues, the committee continued to be interested in progress under the Telstra Retraining Funding Deed. Under this deed the government has committed to provide $100 million to Telstra to support the availability of an appropriately trained workforce.

The committee also heard that NBN Co. and the Department of Broadband, Communications and the Digital Economy had undertaken a number of initiatives to ensure an appropriately skilled workforce to support the NBN rollout. On this important area the committee recommended the NBN Co. continue to work with contractors to ensure sufficient mobilisation of skilled labour to meet NBN rollout targets. It also recommended that the NBN Co. continue to update NBN workforce modelling data to assist with planning for changing NBN training needs and workforce demand.

I would also like to say a few words about the dissenting report tabled by the coalition. Those opposite certainly know the adage, 'If you are going to tell a lie, tell a big one.' When it comes to the NBN, they tell a series of crackers. In their dissenting report to the fifth report of the joint committee on the NBN, the coalition continued this tactic. They assert—

Photo of Michael RonaldsonMichael Ronaldson (Victoria, Liberal Party, Shadow Minister for Veterans' Affairs) Share this | | Hansard source

On a point of order, I am sure Senator Cameron was not reflecting on my colleagues who submitted that report and calling them liars. If he was, I ask him to withdraw. If he was not, it can go through to the keeper.

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Senator Cameron, are you prepared to withdraw?

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party) Share this | | Hansard source

I was not seeking to reflect on any of the senators who engaged in the committee. NBN Co. has made clear on a number of occasions that it has signed agreements with utilities, yet the coalition senators have indicated in their report that NBN Co. has failed to secure agreement with electricity utilities to use their poles. Agreements have been reached in all states and territories required for the aerial rollout with the exception of New South Wales and the only reason for this exception is the unreasonable commercial terms being demanded by the New South Wales government. The coalition has also misrepresented NBN Co.'s performance against its rollout targets, constantly using the forecast from NBN Co.'s 2011-13 corporate plan. Those opposite know full well that the 2011-13 corporate plan was produced before the definitive agreements were finalised, before the deal with Optus was contemplated and before the full impact of the ACCC's decision on 121 points of interconnect was known.

The coalition is desperate to cast the rollout of the NBN in a poor light. This is the only way they can attempt to justify their substandard copper based broadband network. The truth is that the rollout of the NBN is happening in every state and territory across Australia. So far this year NBN fibre has been switched on in sites all over the country, including Aspley, Bacchus Marsh, Blacktown, Coffs Harbour, Darwin, Gosford, Gungahlin, Hobart, Launceston, Toowoomba and Townsville, and to over 300 new developments all over the country.

The only thing those opposite dislike more than seeing progress in the rollout of the NBN is the take-up rates on the fibre network. This is because NBN's take-up rates are world records. The take-up rate is nearly 40 per cent across the country in areas connected for more than 12 months, with more than 66 per cent of households connecting in some areas.

The constant stream of misrepresentation from the coalition is not surprising given its form on the NBN. It was not too long ago that the coalition asserted it would save $50 billion to $60 billion by not proceeding with Labor's NBN. The truth is that the investment by this government in the National Broadband Network is $30.4 billion. Compare that to the coalition proposing to borrow $29.5 billion to build a network that will be obsolete by the time it is built. That is a difference of $900 million to implement a second-rate policy that will create a digital divide in every suburb. In contrast, this government's NBN will ensure that every community in Australia gets fair and equal access to affordable high-speed broadband, including the delivery of a uniform national wholesale price.

I have also heard claims from the coalition that under their broadband policy less of the older pits and ducts would be disturbed. The coalition have made great play on the discovery of asbestos in some pits. That should not have been a surprise to anyone who knows anything about the last century and the previous efforts of Telstra in using asbestos in pits around the country. Everyone who knew anything about it knew there was asbestos in the pits. That is why the government contracted Telstra to remedy the pits and make the pits accessible for the rollout of the NBN. Telstra have accepted responsibility for the asbestos contamination that has taken place and they have put in place clear management procedures and work practice procedures to ensure that that does not happen again.

The opposition spokesperson, Mr Turnbull, has tried to argue that there will be no asbestos disturbed under the fibre-to-the-node and copper based network of the coalition. But under the coalition's broadband policy they cannot avoid dealing with asbestos as over 60,000 nodes would be built. The coalition policy also requires duct and pit access in a number of cases, such as for running fibre between three million and four million homes. They will also run fibre to the basement in apartment blocks. With fibre on demand, the coalition plans to charge Australians up to $5,000 to connect to fibre. It is untrue to say that the coalition's proposal will mean that asbestos will not be disturbed. It will be disturbed. It is clear that this is part of the coalition's tactic to try to discredit the NBN, to try to destroy the NBN—one of the best, most visionary and most productive public works that this country has ever seen. On that basis, I commend the report to the Senate.