Kate Lundy (ACT, Australian Labor Party) Share this | Hansard source

Far from the picture that Senator Minchin tries to paint of the Australian National Audit Office report, the government in fact welcomes the report into a key election commitment to deliver a high-speed broadband network to Australians that will lead to significant national economic benefits. The NBN request for proposals process was designed to maximise flexibility and allow proponents to offer innovative market based solutions. Many aspects of the RFP process in fact mirrored the FTTN competitive process put forward by the previous government in 2007. I note with interest that it was the quote relating to a single-stage or two-stage process that Senator Minchin sought to draw attention to, because we can remember very clearly that the previous government also had a one-stage process that also allowed proponents to put forward the regulatory changes that were necessary to facilitate their bids. So it is quite hypocritical for Senator Minchin to draw attention to that fact as though it was an area that was problematic in the eyes of the ANAO. While the ANAO has commented on it, it was in fact the practice of the previous government as well. Hence, one own goal to Senator Minchin.

The government is also pleased to note that the ANAO considers that the process was conducted well, and it is very important to note that the ANAO has not made any recommendations. I think that is a reasonable indication that, while this is a worthy analysis of the process, there is no subsequent action required of the government in the opinion of the ANAO arising out of this performance audit.

I also agree with the ANAO’s view—as does, as you would presume, the government—that the process was conducted well and in accordance with Commonwealth procurement guidelines. Again, that is in stark contrast to the picture Senator Minchin sought to put in his presentation to the chamber. Notwithstanding that, as we know the RFP process did not result in a successful outcome for several reasons, including that no proposals were sufficiently well developed to present a value-for-money outcome; proposals lacked committed private sector funding; and regulatory changes sought by some proponents could have given rise to significant risks for the Commonwealth. The ANAO also noted in its report the impact of the unforeseen global financial crisis and concluded that this factor significantly reduced the prospect of a successful outcome.

The ANAO also noted in its report that the panel and the ACCC advised that fibre to the premises was preferable technology to fibre to the node. Just to make sure everyone is clear on this, when the original request for proposals was put to the market it was for fibre to the node; as we now know, Labor’s policy is for a fibre-to-the-premises network.

The NBN RFP process was a very valuable one to the government because it allowed the government to test the market and understand exactly what it was capable of delivering. It provided a pathway to fast-track Australia to a world-class fibre-to-the-premises digital future. That will benefit all Australians.

It is a good opportunity to mention that the NBN policy and the broadband rollout is a project underway. It is, of course, a key nation-building project. It will help stimulate the economy and help drive Australia’s productivity. It will assist in transforming service delivery in key areas such as health and education as well as energy efficiency applications. I note Senator Conroy’s very erudite response to a question in question time yesterday about the benefits of high-bandwidth technologies in reducing Australia’s carbon footprint. It is a timely and relevant point to make, given the issues being discussed in this place.

We know that the fibre-to-the-premises NBN policy we are pursing will connect 90 per cent of premises to a high-speed fibre network, providing speeds of 100 megabits per second. This is a substantial improvement on the speeds that were associated with a fibre-to-the-node network. It will be incredibly beneficial to businesses and homes alike.

Of course, we are just getting on with the job. I think the coalition find it quite difficult to deal with the fact that in the meantime NBN Co. and the government are making significant progress. The rollout in Tasmania is already underway. The trenching and laying of conduit and fibre for the transmission between Cambridge and Midway Point has been completed and they are on track for the first services to be connected in Tasmania from July this year. This is fantastic news. Tasmania has been the testbed for many a failed experiment under the previous government. We have seen millions of dollars expended and no real difference made. With the long-term very broad vision of a national broadband network and with Tasmania being the first cab off the rank to experience the benefits of such important economic infrastructure, I think the people of Tasmania understand not only the priority but the importance of making sure that an investment in Australia comes to fruition and makes a meaningful difference to the residents of that beautiful place.