Senate debates
Thursday, 2 March 2006
Questions without Notice
Telstra
2:11 pm
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
My question is to Senator Coonan, Minister for Communications, Information Technology and the Arts. I refer the Minister to Telstra’s extreme 43 per cent home phone connection price increase. I did note your previous answer, but as usual you tried to gloss over the issue. Is the minister aware that these plans will result in price increases for pensioners installing new home phone connections of from $135.30 to $194? Does the minister believe that a $60 increase for the price of a home phone for pensioners is justified? Isn’t the Australian Consumers Association right when it says that this price rise ‘is going to hit people at the lower end of the income scale disproportionately’? Will the minister now act to stop these price rises to protect Australian pensioners from the impact of these extreme price increases?
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
I thank Senator Polley for that question and for the opportunity to continue to provide information in relation to the arrangements made to both look after people on low incomes and reinforce the retail price arrangements that this government has put in place.
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
You’ve been rolled. Cabinet rolled you again.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
In addition to the information I provided in relation to Senator Lundy’s question, I announced this week that Telstra will now be required to offer a basic retail line rental service at the same price across Australia following an amendment to the Telstra price controls.
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Twice in a week. How do you get away with it?
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
The government announced that the price controls would be amended in December last year.
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
How embarrassing.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
The Telstra carrier charge was in fact amended formally yesterday. The price controls that apply to Telstra are a key telecommunications safeguard. They do make sure that the efficiency gains Telstra makes are passed through to customers in the form of lower prices—
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Senator Conroy interjecting—
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
in markets where competition is not yet fully developed. Under the amended price controls, Telstra will not be permitted to charge more than 22c for local calls offered with this service. The determination also makes it clear that the price for the basic line rental service—
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Senator Conroy interjecting—
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
to residential customers, whether they are pensioners or otherwise, will remain frozen at its level on 31 December 2005—the price is $31.95—until 30 June 2007 and thereafter only increase at the rate of inflation.
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
What about phone connection prices?
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
In addition, customers also select the basic line rental service from Telstra and will be able to select other carriers for their trunk and international calls if they choose. So they get a choice as well as the capped rate and the capped bundle.
Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Mr President, I raise a point of order.
Chris Ellison (WA, Liberal Party, Minister for Justice and Customs) Share this | Link to this | Hansard source
What is wrong? It is a good answer.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
He does not like it.
Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
My point of order goes to relevance.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
Of course it is relevant.
Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
The minister and her colleagues may think that it is a good answer; it is just not the answer to the question asked of her. If she wants to read out her brief, maybe she would like to do that on the adjournment. The question asked was about the increase in the home phone connections—the 43 per cent. Mr President, I would ask you to draw her attention to the question.
Paul Calvert (President) Share this | Link to this | Hansard source
I believe that the minister was being relevant. I would remind her of the fact that she has two minutes left to go. I would also remind the Senate that in the first two minutes Senator Conroy interjected some 24 times.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
Unfortunately, I know that this information, which is relevant information to provide to those listening to question time, is constantly interrupted by those on the other side. They do not like the fact that this is the government that has put in place safeguards for people and for consumers and for pensioners with respect to telecommunications and the way in which the regulatory environment regulates not just Telstra but also all other providers. The price control arrangements that will apply and which were introduced on 1 January will remain. We have untimed local calls which remain capped at 22c, and Telstra is still required to continue to offer a package of services and support targets for low-income consumers.
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
I was providing additional information about the price controls because that is relevant information—
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Senator Conroy interjecting—
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
In the previous question I attempted, probably for about two minutes—I was timing myself—to provide information about targeted assistance to low-income earners. In four minutes you can only deal with the question, which I have done, and I specifically dealt not only with low-income earners but also the broader package of price controls which delivers benefits to consumers right across Australia and for consumers who were completely neglected by the Labor Party, which did not even have a customer service guarantee.
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
Mr President, I ask a supplementary question. I have to say that the minister is consistent in avoiding answering any questions. Is the minister aware of recent comments by independent telecommunication analyst Paul Budde who said that, when it comes to a fully privatised Telstra, the prices of ‘everything that is not regulated will be increased’? Since the price caps have been proven completely inadequate in protecting pensioners, doesn’t this mean that these home phone price increases will just be the first of many Telstra increases for Australian pensioners?
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
The reality is that the overall telecommunication prices have dropped by nearly 20 per cent since the Howard government was elected in 1996. What is the senator going to say to that? The incontrovertible proof is that this government’s record stands as having delivered real benefits for consumers in telecommunications, together with the fact that there is targeted information and assistance for low-income earners and an overall price regime that, of course, the Labor Party did not have the wit or forethought to introduce when they were in government. Now they resent the fact—
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Senator Conroy interjecting—
Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source
that this government is delivering real benefits for consumers. We will continue to do so even though the others shout about it.
Paul Calvert (President) Share this | Link to this | Hansard source
Order! There is far too much noise on my left. Continual interjecting is disorderly.