Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Cameron for his genuine interest in this policy area. The Senate may be aware that the Economic Journal, widely considered the leading economics journal in the United Kingdom, published a paper titled Broadband Infrastructure and Economic Growth. Of course those opposite and their leader are known to dislike economists so it is entirely reasonable to assume that they have not bothered to read this document. But like many other studies before it, it found that an increase in broadband penetration would raise annual per capita GDP.

Interesting, and a much more relevant finding to Australia, was that it also found that fibre-to-the-home technology is the only broadband technology that can provide general-purpose technology benefits. General-purpose technologies like fibre to the home and electricity create ongoing improvements in GDP because they underpin other technologies and multiply their value. The paper explains:

They do this by accelerating the distribution of ideas and information, promoting innovation and competition and aiding the introduction of new products, processes and activities.

This paper was discussed in an article today in the Australian Financial Review and the authors found that they could apply the paper to Australia and the NBN. They said:

The NBN will provide enormous potential for people in regional and remote locations to access a large suite of facilities and services including educational, commercial, social, entertainment, health and other opportunities.

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