David Feeney (Victoria, Australian Labor Party, Parliamentary Secretary for Defence) Share this | Hansard source

I think the issue here is well understood. I think the background to it has been long deliberated over. There is an increasing need for an effective Australian presence in the international television market, particularly in Asia but also in the Middle East and North Africa, to which Senator Humphries referred so disparagingly.

For decades Radio Australia has carried the flag for Australia internationally, but satellite television is now the dominant medium for hundreds of millions of people in countries where we need to project Australia's voice and a positive image of Australia. This is acutely in our commercial interests and our broader strategic interests, and should be something about which we are all in furious agreement. But, alas.

In November 2010 the government announced an open tender process for the rights to conduct Australia's international TV operation for the next decade, for a maximum of $223 million over 10 years. Now, Senator Humphries referred to the tender 'only' being worth $223 million—and well he might, when he and his colleagues sitting over there work out that their $70 billion black hole has, by virtue of some announcements last week, become a $72 billion black hole. So for them it is a mere $223 million over 10 years. But let us be very clear: this is an important project; it is a project of national significance. It is a project that Senator Conroy and the government are playing very close and attentive care to.

In June this year, the government announced an extension to the existing Australia Network contract while additional information was sought from tenderers. In the light of changed international circumstances since the original tender was issued, the government decided that national interests should be addressed more broadly. Tenderers were asked to submit amended bids to explain how their operation of the Australia Network service would meet Australia's national interests in the light of the increasing influences of key emerging markets on the global economy and the significant political transformation occurring across the Middle East and North Africa together with the need, identified during recent consular crises, for strengthened associated information services through a range of sources.

This is all common sense. Those opposite might try to pretend that sweeping events such as those that have recently taken place in North Africa and the Middle East are of no account but this government does not agree. Now that process proceeded smoothly until recently. But unfortunately, as Senator Conroy explained very clearly yesterday, significant leaks of confidential information to the media have taken place. As a consequence, the tender process has been compromised. It has been compromised to a degree that the government decided, quite reasonably, that a fair and equitable outcome could no longer be achieved.

That is what it means, Senator Humphries, to manage a proper and appropriate tendering process. The sorts of leaks that have occurred in recent times were believed by the government to have compromised the process. As a result the government took the decision that it was in the best interests of both tender parties and the government that the process be terminated. The government has asked that the Australian Federal Police investigate these leaks. That is not a decision that has been taken lightly. The government believes that the advice received about the tender process left it with no other option.

The government is extremely disappointed that those leaks have occurred and that the process has been compromised. It is not something we are celebrating, Senator Humphries. And it is something that you should not be celebrating either. This was a significant commercial contract. As Senator Humphries said, it is worth some $223 million of taxpayers money. And it was important that both cabinet and the general public should have confidence in the outcome and the process that gives rise to the outcome. To provide for the continuing operation of the Australia Network in the interim, the government has granted a six-month extension to the contract with the ABC, until August 2012. Those opposite, I note, have raised absolutely no concern as to how this very important service operates in the interim. But that is something the government has turned its mind to. This will ensure that there is no disruption to services and will allow the ABC the flexibility to book such things as satellite time and to maintain an ongoing service. Those opposite would seek to make cheap political points out of this because, of course, that is their want. However, I do note with great interest that the day after the carbon tax bills have gone through this place we are here debating this point. There is a creeping dread amongst those opposite that their negativity and their unrestrained— (Time expired)