Nick Xenophon (SA, Independent) Share this | Hansard source

I would like to pick up on the comments made by my colleague Senator Ludlam. I think it is important that we see a business case; some would say it is long overdue. But this is a $43 billion investment, the nation’s biggest single infrastructure investment since the Snowy River hydro scheme. It is vital that we have all the checks and balances, the relevant scrutiny, to ensure that the benefits of such an investment is truly assessed. As a parliament we would not be doing our job if we did not have a high level of scrutiny applied to this massive project.

Having said that, I think it is important that we have a national broadband network that is efficient and effective and that delivers what Australians deserve. Australia needs to keep pace with the rest of the world, and the rest of the world is speeding away when it comes to broadband technology. When it comes to telecommunications, Australia seems to have been left behind for a number of reasons. One of the reasons is infrastructure. We also need to look at the structural separation of Telstra, because that could hold back the development of telecommunications in this country. I urge the coalition to reconsider their views on blocking the structural separation of Telstra, because that is an essential reform that we need to have.

There are issues in relation to what Senator Ludlam said. My view of a cost-benefit analysis is somewhat broader than that of Senator Ludlam. He made some very good points, but the fact is that the Productivity Commission does have the capacity to provide a cost-benefit analysis that also includes the issue of the social benefits of such a network. In answer to a specific question on this issue during Senate estimates last week the Productivity Commission acknowledged frankly that they have been asked to look at the social benefits of particular projects in particular industries and in particular sectors. They have done so very competently in relation to aged care and they have done so in relation to gambling, and I think it is important that they also be given an opportunity to do so in relation to the National Broadband Network. I believe that the terms of reference need to be much broader than those proposed by the coalition in the bill that has been introduced.

It also needs to include an analysis of any impact of any exemption from the Trade Practices Act in terms of competition and consumer laws in this country. It also needs to look at any potential technological advances and the likely impact on the NBN, including whether future technologies may be superior. It also needs to consider the likely take-up rate of NBN services, having particular regard to international experience. Also, fundamentally—and I think this picks up on Senator Ludlam’s very reasonable concerns—there should be consideration of nation building; the social and community specific benefits flowing from the NBN, having particular regard to rural and regional communities. I believe there has been a market failure when it comes to regional Australia in relation to broadband. That is why I believe we do need a national broadband network. But, for goodness sake, let us ensure that we spend the money that is needed to deliver services to all Australians in a way that has a process of rigour and analysis that ensures that maximum benefit to taxpayers is being provided.

I would have thought that the Productivity Commission could play a very valuable role in relation to that. Given that the government will release the business plan in the not too distant future, I would see the work of the Productivity Commission as supplementing and augmenting the information contained in the business plan. I think we have an opportunity to get it right. Perhaps I could paraphrase the member for New England: we should do it once and we should do it right. But I believe that also involves having a reasonable cost-benefit analysis that, of necessity, ought to include the social benefits of having a national network and also looking at issues of market failure, particularly in regional Australia because regional Australia has waited too long to have decent broadband in this country.