Dick Adams (Lyons, Australian Labor Party) Share this | Hansard source

There is talk about consultation on the need for a broadband network in Australia. I tell the honourable member for Fadden: we consulted the people—small business, big business—about the need for it. Previously there were 12 years of doing very little about the need for this country to get its broadband up to speed so it can compete with the rest of the world in a whole range of areas. I notice the honourable member did not say anything about the country not needing to do this work; he just wanted to talk political rhetoric—which the honourable member is getting a reputation for.

I rise to talk about the Telecommunications Legislation Amendment (National Broadband Network Measures—Network Information) Bill 2009. Regulatory reform is a core element of the government’s historic plans for the National Broadband Network. The rollout of the NBN as a wholesale-only open access network will fundamentally transform the competitive dynamics of the Australian telecommunications sector. During the rollout and after, the existing telecommunications regulatory regime will remain important for delivering services in the interests of Australian consumers and businesses.

This bill will amend part 27A of the Telecommunications Act 1997 to establish a regime to provide access to network information held by telecommunications carriers and other utilities where it is important to the planning and rollout of the new National Broadband Network initiative announced by the government on 7 April 2009. Information that is obtained will support the NBN implementation study and, subject to further consideration, the rollout of the network by the NBN Co. and other companies designated by the minister. The amended part 27A will also provide a comprehensive framework to protect the confidentiality and security of any information obtained. The amended part 27A is intended to act as a safety net in the event that, after a reasonable period, cooperative and commercial negotiation to access information proves unsuccessful.

Earlier this year, the government made the historic announcement that it would establish a company that will invest up to $43 billion to roll out a forward-looking superfast fibre-optic based National Broadband Network, the NBN. This will fundamentally change Australia’s communications landscape. It will vastly improve access to broadband services in Australia and will improve the competitive dynamics in the sector. Telecommunications services that are universally available, reliable and affordable are accepted as a critical input to the operation of an equitable society with an efficient economy. Although once it was sufficient to have well-functioning voice and basic data services, high-speed broadband services are now essential to the future efficiency and productivity of the Australian economy.

A recent study has suggested that widespread access to and use of high-speed broadband would expand economic activity by approximately 1.4 per cent of gross domestic product after five years. However, these gains will not be achieved unless the correct regulatory settings are in place. In the transition to the National Broadband Network, the government is committed to creating the market structure that will maximise the benefits to economic efficiency and productivity of high-speed broadband services.

But the government does not want to reinvent the wheel; there is a huge amount of infrastructure already rolled out across the country. So it is important for the planning and rollout of the NBN that there is ready access to information about existing infrastructure that might be utilised in the rollout of the network. This includes, for example, information on the location and availability of facilities such as poles, ducts and pipes. Such information is important so that the options for rollout in an area can be assessed—for example, duct availability—and the network can be rolled out as cost-effectively as possible. The information is held by telecommunications carriers and other utilities such as suppliers of electricity, water and transport services. The preference is to acquire this information on a cooperative or commercial basis.

This legislation is intended to provide a safety net to allow the Commonwealth to seek relevant network information where cooperative or commercial approaches may not be successful. This may be necessary to ensure the project is not delayed, or otherwise frustrated, by firms that have important information but have strategic or other reasons to withhold it. It also includes detailed arrangements to protect the confidentiality and security of the network information concerned, whether it is provided to the Commonwealth voluntarily or under the legislation. This is important, given that such information may relate to sensitive, critical national infrastructure. The collection of information of a personal nature that might raise privacy concerns is not envisaged.

The bill permits the Minister for Broadband, Communications and the Digital Economy to make a disallowable instrument, specifying information to be provided by specific carriers and utilities, for the purpose of the implementation study. The information would be subject to strict rules relating to handling, storage and disposal. Pecuniary penalties would apply for breach of these rules.

The proposed legislation is important in ensuring that information needed for the NBN implementation study—and, if appropriate, for the rollout of the network—can be accessed where it is not otherwise reasonably available through cooperative or commercial means. Importantly, the legislation also provides a structured framework to protect the confidentiality and security of such information, given it may relate to sensitive, critical national infrastructure, whether the information is provided voluntarily or under law.

The Treasury has advised that it considers the benefits to consumers and Australia from the rollout, both in terms of services and competitiveness, will far exceed any detriments by seeking access to information. Legal advice that has been obtained by the Department of Broadband, Communications and the Digital Economy indicates the Commonwealth has the legal authority to seek such information, including from utilities other than telecommunications carriers. The risk that the legislation would involve acquisition of property requiring compensation is low. On the cost to parties required to provide information, much of this information is likely to be readily available in their existing databases, therefore minimising any additional costs. Cost was not raised as a significant issue when part 27A was originally introduced last year.

This legislation is very important and shows the government’s ongoing commitment to ensuring markets operate through vigorous competition for the benefit of consumers, businesses and, more broadly, the Australian economy. The National Competition Policy reforms agreed to by the Australian and state and territory governments in 1995 and 2007 affirm the importance of effective competition in maintaining and improving the welfare of Australia. The competitive process encourages firms to produce goods and services at the lowest cost, to use resources to produce the goods that are most valued by the consumer, and to innovate by developing new products and services.

The telecommunications competition reforms introduced in 1997 have delivered benefits to date; however, the regime has operated in the context of a traditional vertical and horizontal framework. Moving to the National Broadband Network environment will fundamentally change the competitive dynamics in the telecommunications sector. In the meantime, the government wants to ensure that the existing regulatory regime works more efficiently, including by removing incentives for discrimination and delays through regulatory gaming to increase opportunities for competitive outcomes.

There is still an ongoing commitment to regional and remote areas as the government recognises that appropriate telecommunications services are essential so families, businesses, schools and others in regional and remote areas can actively participate in Australian society. The government has recently reiterated its commitment to a prosperous and sustainable regional Australia in its response to the Glasson review. Its role was to assess the adequacy of telecommunications in regional, rural and remote parts of Australia and provide a report to the government, including recommendations.

Tasmania is fortunate in having the first part of the rollout, and work has started so that many areas that previously had no access hopefully will soon be able to link into the world. Other areas that have had slow speeds will be able to upgrade to the faster networks and be able to link into the multimedia soon to be available right across Australia.

As they say, ‘from little things, big things grow’ and we are only a small pond in Tasmania but we will be able to help the whole nation move forward with the future of IT. I support the bill.

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