Malcolm Turnbull (Wentworth, Liberal Party, Shadow Minister for Communications and Broadband) Share this | Link to this | Hansard source

My question is to the Prime Minister, who only a year ago said that the government had lost its way. Given that the largest group of Australians without access to the internet are households with incomes of $40,000 a year or less, how can she claim the government is finding its way by today agreeing to pay billions to Telstra and Optus to eliminate any competition with the NBN, so that it can charge higher and higher prices for broadband—as its own corporate plan reveals—making the digital divide deeper and more unjust?

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

I thank the member for Wentworth for his question. We have waited a long, long time to hear from the member for Wentworth, and so it is nice to have him back and have him ask a question in this parliament. I did think, as question time went on, that it was more likely than not that the opposition, trapped as it is in its relentless negativity, would allow the major milestone of today's announcement with Telstra to absolutely pass it by, because of course it is not interested in a vision for the nation's future or the part that superfast broadband can play in that vision. But the member for Wentworth has ridden to the rescue and asked a question on this important topic.

Unfortunately, the member for Wentworth is mistaken in his question, so next time he gets to ask one perhaps he could ask one that is better pitched than this. As the member for Wentworth really knows, I believe, the National Broadband Network is developing the infrastructure, it will be a wholesale provider and there will be retail competition based on the broadband network—so retailers will be competing in order to get people's business. Those of us who believe in free markets and in economic theory know from first principles that if you can get competition into the market then you will get lower prices, you will get more choice and you will get better services, and of course with the National Broadband Network you will get faster speeds.

Mr Pyne interjecting—

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

The member for Sturt is reminded that he is in the chamber of the House of Representatives. I am not sure what caused the outburst, but he will ignore those interjections that he receives, cease interjecting and attempt to sit there quietly—attempt! The Prime Minister has the call. She should be heard in silence.

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

As I was saying to the member for Wentworth and to the House, competition obviously gives us the benefits of the greatest competition on price, the greatest competition on service and the greatest number of options for consumers, and of course superfast broadband gives us the benefit of speed. The member for Wentworth has raised with me the digital divide and I say to him, yes, I am desperately concerned by the digital divide, and one of the reasons we have gone down the path of creating NBN Co. to bring superfast broadband around the country is that, if we had allowed the private sector to simply respond, it would have responded in limited parts of the country, the upper income areas where there were most likely to be the greatest returns, and there would have been large parts of the country—in regional Australia but also on outer urban fringes—where people would not have the benefits of this technology. Being very familiar with the nonprovision of broadband in my own electorate in Melbourne's west, I tell him that we would not have seen the kind of provision of broadband to those areas which is necessary to close the digital divide.

If you cared about equity and you cared about Australians getting fair access to broadband, you would endorse the government's plan for the National Broadband Network. If you cared about equity and cared about the tyranny of distance suffered by people who live in regional Australia, you would endorse the government's plan for the National Broadband Network. If you cared about lower prices, faster speeds, greater competition and more choice, you would endorse the government's plan for the National Broadband Network. I think the member for Wentworth is trying to inch his way towards actually endorsing the government's plan in his public statements, but he has been told by the Leader of the Opposition to destroy the NBN as part of the opposition's relentless negativity. I know the member is uncomfortable with that position, but with the current Leader of the Opposition that is the position he finds himself in.