Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Telecommunications Amendment (Infrastructure in New Developments) Bill 2020, which I am introducing today, will improve access to telecommunications in new developments.

Access to telecommunications underpins much of today's economic and social activity. The importance of broadband connectivity has been highlighted by the Covid-19 pandemic, with hundreds of thousands of people staying at home, often continuing their work and study online.

When people move into new homes, or occupy new business premises, they expect ready access to telecommunications. Given that the majority of Internet traffic is carried on fixed-line networks, people expect developers to arrange for this infrastructure to be provided.

Since 2011 the Telecommunications Act 1997 has provided for developers that are constitutional corporations to install what are called fibre-ready facilities – basically pits and pipes that house telecommunications cabling – in proximity to lots or new buildings before selling or leasing them. Unincorporated developers were left to install such fibre-ready facilities as a matter of policy.

Since 2011, the majority of developers, both incorporated and unincorporated, have done the right thing and installed fibre-ready facilities. However, there has been a small but persistent failure by some unincorporated developers to do so. My Department estimates that up to 3,000 premises each year may be sold or leased without pit and pipe as a result.

While the incidence may seem relatively low, the impact on those affected can be significant in terms of restricted access to telecommunications, reduced social and economic participation, retrofitting costs and sheer inconvenience.

The cost to a developer of installing pit and pipe during construction is estimated at $600-$800. By contrast, the cost to a new home buyer of retrofitting pit and pipe is estimated at $2,100, and can be greater if extensive civil works are required.

For example, in 2017 the buyers of three new homes in a development in Balga in Western Australia were presented with a bill of over $10,000 for retrofitting pit and pipe.

The Bill I am introducing today addresses this issue. Fundamentally, it extends the arrangements that currently apply to incorporated developers to unincorporated developers.

It also makes some minor related changes. It clarifies that the facilities to be installed must be 'functional'. A functional facility must be technically capable of being used in connection with an optical fibre line.

This would mean, for example, that if a pit or a pipe is filled with concrete or earth and is not functional it would need to be replaced or remediated by the developer.

The Bill provides a transitional exemption for projects that are already underway.

Existing exemptions under the Telecommunications Act 1997 – for example, where premises are being built outside NBN Co's fixed-line footprint and it is unlikely fixed-line networks will be provided – will continue and apply to both incorporated and unincorporated developers.

The arrangements in the Bill are subject to civil penalty provisions. The Australian Communications and Media Authority, as the industry regulator, will be able to enforce the provisions.

While small changes, the amendments I am bringing forward mean that people who occupy new premises can have more confidence that appropriate pit and pipe has been installed, giving them ready access to modern communications, regardless of whether the developer is incorporated or unincorporated.

I commend the Bill.

Carol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | Link to this | Hansard source

I rise to speak on the Telecommunications Amendment (Infrastructure in New Developments) Bill 2020. The context of this bill, as set out in the explanatory memorandum, is to address unincorporated developers that have a legally enforceable obligation to install pit and pipe infrastructure in new property developments. This will ensure that Australians who move into new homes can have the confidence that underground ducts and pipes, which are needed to subsequently connect to the NBN and other networks, have been installed as required. In the rare circumstances where they are not, this bill will make it possible to issue penalties and other remedial actions to unincorporated developers.

Labor supports this bill as it addresses a small gap in our existing consumer protection framework. The proposals are sensible, and we do hope that passage of this bill brings us very close to eliminating the number of instances where developers fail to install telecommunications infrastructure. I commend the bill to the Senate.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

I commend the bill to the Senate.

Question agreed to.

Bill read a second time.