Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

I will make some brief opening remarks to the Committee. Through the 2011-12 appropriation bills, the government will provide the Broadband, Communications and the Digital Economy portfolio with $4.1 billion to deliver its priorities. This includes $2.7 billion directly to the department portfolio to deliver its priorities, including a $2.3 billion contribution to the $3.1 billion equity injection into the NBN Co. in 2011-12, with $300.7 million of the remainder coming from the 2010-11 appropriation act and $438 million from the Building Australia Fund. There will be $990.7 million through the department to the ABC, $228 million through the department to the SBS and $112.6 million to the Australian Communications And Media Authority. The government will provide $372.4 million in new funding and $18.2 billion in equity funding over the period 2011-12 to 2014-15 to the portfolio for a range of measures, the National Broadband Network, of course, being the most significant. There will be $18.2 billion in equity funding provided to the NBN Co. over the budget in forward years, with $3.1 billion being invested in 2011-12. There will be $37.4 million over four years to support the government on the NBN rollout. The $376.5 million will be provided from 2011-12 to 2014-15 for the switchover to digital-only television. Funding will be provided to the department, the Department of Human Services and the ACMA. In 2011-12 $15.2 million will go to continuing funding for the National Indigenous Television network, or NITV. There will be $12.5 million over four years for community broadcasting to increase content production in the areas of ethnic and Indigenous broadcasting and radio for the print-handicapped and to establish a new community radio content development fund, and $2.2 million in 2011-12 to continue the current arrangements for untimed local calls in the extended zones pending the outcome of the review of telecommunications retail price controls. The budget provides $8.3 million to the department and the ACMA to facilitate the auction of spectrum in the 700-megahertz and 2.5-gigahertz bands in 2012-13 and to undertake preparatory work required in the lead-up to the auction, including the valuation, planning licence framework and auction process, and there will be $3.4 billion to the ACMA to ensure greater compliance and strengthen communications with industry.

The Australian government understands that access to affordable high-speed broadband is increasingly essential to the way in which Australians communicate and do business. The NBN will help improve education and health service delivery and connect our cities and regional centres. It also delivers a significant microeconomic reform through the restructure of the telecommunications sector. NBN Co., the company established to build and operate the NBN, has forecast in its corporate plan that $35.9 billion in capital expenditure will be spent on building the NBN. The government will make an equity investment of $7.5 billion towards the NBN. NBN Co.'s corporate plan confirms that taxpayers will get their investment back with interest and that the NBN will provide a rate of return higher than the government bond rate.

The government is also extending its support to assist Australians to make the switch to digital television. The 2011-12 budget provides $376.5 million in funding for ongoing assistance. The household assistance scheme remains the centrepiece of the government's ongoing assistance to Australians in making the switch to digital TV. There are also a range of digital economy initiatives in the budget. The National Digital Economy Strategy launched on 31 May 2011 announced government programs that will assist Australian households, businesses and non-profit entities to enjoy the economic and social benefits that the NBN can deliver and programs that promote tele-health and online education. These measures are part of a coordinated approach to help grow Australia's digital economy and increase digital productivity. (Extension of time granted) They represent the next step in the government's commitment to strengthen Australia's digital productivity. The government will closely monitor the implementation of these initiatives and progress against the goals outlined in the National Digital Economy Strategy. Further measures may be identified and implemented over the duration of the strategy. Funding announced in the 2011-12 budget for the department, the ABC, the SBS and the ACMA will encourage a vibrant, sustainable and internationally competitive digital economy here in Australia. I commend the appropriation to the House.

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