Andrew Southcott (Boothby, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Communications. I refer to a claim by Senator Don Farrell in April this year that construction had commenced to bring the NBN to more than 8,300 households in my electorate of Boothby. How many households in established areas have been passed by the NBN in Boothby, and how many have actually paid for a connection? Were Senator Farrell's remarks consistent with the approach of the previous government?

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

I thank the honourable member for his question about his electorate of Boothby. I regret to say that there are none—zero—brownfield premises passed in his electorate with the NBN fibre, and consequently it will surprise him that there are no connections. No-one is paying for a service.

This is not surprising. In South Australia, since the initial connection in 2011 of 700 premises in Willunga in a trial, there has been virtually no progress at all. At the time of the election, only an additional 69 brownfield premises had been connected—

Ms Rishworth interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Kingston will desist.

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

in the whole state—only an additional 69. We recall the Labor Party talking about the project being about to ramp up. Well, there was a ramp, but it was all down.

Of course, this abject failure to deliver could not dampen the enthusiasm of the honourable members opposite. On 28 August, the Hungarian Club in Norwood, in Adelaide, was witness to an NBN forum. The member for Chifley was there. The member for Adelaide was there. It was to update constituents on the progress of the NBN. I have the invitation here. But there seems to have been a typo, because the meeting was scheduled for an hour, which seems a very long time to discuss the fact that in Adelaide there were no premises passed and none connected. Of course, the member for Adelaide may have allocated the time to explain how this zero result could be reconciled with her announcement in July 2010 that Prospect was next in line for the NBN, or indeed that construction had commenced in November 2011.

But these, while consistent with Senator Farrell's spin, are small beer compared to Prime Minister Gillard telling Australians on 20 December 2010:

… the NBN can be delivered with a rate of return, which means taxpayers will be repaid their investment in the NBN with interest …

That was echoed by her colleague Senator Conroy at the same press conference, who said: 'NBN Co.'s expected rate of return is seven per cent, which compares favourably with the average 10-year bond rate to September 2010 of 5.4 per cent. That means the government can expect to recover all of its NBN Co. funding costs with interest.' The only problem was that this was one month—only one month—after the government received advice from Lazard, the investment bank, that the NBN project had a negative value of $31 billion. No wonder Australians lost faith in Labor. No wonder they are sick of their spin.