Michelle Rowland (Greenway, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister inform the House of the importance of the structural separation of Telstra for reform in the telecommunications sector?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for her question. In front of the Senate at the moment is an incredibly important piece of legislation, which is the competition and consumer bill, that structurally separates Telstra’s retail arm from the rest of the company. This is a profoundly important piece of microeconomic reform. It will create a transparent regulatory framework that delivers quality, choice and competitiveness so that consumers benefit and so that market entrants, who would provide retail competition, do not face barriers to that entry.

This is a profound test for the opposition as to whether or not they believe in this kind of competition reform, this kind of microeconomic reform. This legislation is necessary to overwhelm one of the mistakes of the past which was the failure of the Howard government, of which the Leader of the Opposition was a part, to deal with regulatory settings when they privatised Telstra.

What the government is seeking to achieve in this legislation is not just paving the way for the NBN. We are fixing a major market failure left to us by those opposite. Of course, this just equals simple common sense. We would not allow one petrol company to own all of the oil refining in this country. We would not allow that to happen. We would not allow one supermarket to own all of the farms. When we are looking at telecommunications we need to achieve structural separation so that we can have proper price competition in the retail market.

Interest groups, experts and even the member for Bradfield in an earlier iteration all supported this step to increase competition. Now when we are looking at this legislation we find that it is an important microeconomic reform. It is also vital to enabling there to be one wholesale price around the country. If you care about microeconomic reform you will support this bill. If you care about regional Australia and its ability to have the same wholesale price—whether it is in voice, or whether it is in television or whether it is in broadband—then you will support this bill.

Then, of course, you will support this bill if you actually accept the advice of Telstra about what it now believes should happen. I direct people’s attention to the statement last Friday of Telstra’s chairman at the shareholder meeting when he said:

We remain focused on ensuring that we turn the non-binding Financial Heads of Agreement into Definitive Agreements with NBN Co.

                        …                   …                   …

We believe that the terms we have negotiated are in the best interests of shareholders …

We are calling on the opposition to support this bill. Whilst we call for that support I note that the member for Wentworth has publicly supported structural separation. I also note that the member for Wentworth now has 10 million reasons to support the NBN as well.

Don Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Local Government) Share this | Link to this | Hansard source

Mr Randall interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister will resume her seat. The member for Canning is warned.

Alby Schultz (Hume, Liberal Party) Share this | Link to this | Hansard source

Mr Schultz interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Hume is warned. The member for Sturt on a point of order.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The Prime Minister was not asked about the opposition’s position.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Manager of Opposition Business will resume his seat. The House will come to order. The Manager of Opposition Business on a point of order.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Yet, again, the Prime Minister is talking about the opposition’s position on the NBN. She was asked about the government’s position on the NBN and I would ask you to draw her back to direct relevance to the question she was asked.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business, on the point of order, has asked me to consider whether the Prime Minister is being directly relevant to the question. I will listen carefully to the last 24 seconds—if all the 24 seconds are used—but I clearly indicate to the Prime Minister that she needs to be directly relevant.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I was simply making statements about the bill in the Senate and motivations in relation to that bill. The member for Wentworth has 10 million reasons to be supportive of the NBN. Most politicians get asked to put their money where their mouth is; we simply ask the member for Wentworth to put his mouth where his money is.