Kate Lundy (ACT, Australian Labor Party, Shadow Minister for Sport and Recreation) Share this | Link to this | Hansard source

My question is to Senator Coonan, the Minister for Communications, Information Technology and the Arts. I refer the minister to remarks by Rupert Murdoch that broadband in Australia is ‘a disgrace’. Is the minister aware that James Packer also recently described Australia’s broadband position as ‘embarrassing’ and that Fairfax has stated that Australian internet speeds are slower and internet pricing is more expensive than many other developed countries? Hasn’t the ABC’s managing director, Mark Scott, echoed these sentiments? Will the minister finally accept the consensus and condemnation of Australia’s broadband performance or does she believe that the leaders of the four largest internet and media companies in Australia are ignorant of the basics of their business?

Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

I hope I have enough grace not to talk about who is ignorant here. I have seen some recent comments by a number of people relating to broadband in Australia and I do not share their conclusions. I can appreciate that, if you have a real commercial interest in getting people to buy very expensive product and content, as indeed both Mr Murdoch and Mr Packer have, you will be trying to get the government to subsidise as much of it as you possibly can. I note that the chairman of the ACCC, Mr Samuel, who has no commercial interest in these matters and who has been heavily involved in the details of some negotiations with Telstra this year, suggested that some business commentators could be ‘talking their own book’. He also said that most of the commentary reflects a total ignorance of what is really going on.

I am delighted that there is now so much interest in broadband. I think it is a very healthy debate to have in Australia. I am not claiming, and never have, that the availability of broadband capacity will meet everyone’s needs evenly right across Australia. Obviously we can, and we will, do better with our proposed investment of over $1 billion in broadband and subsidies for rolling out broadband in under-served areas. But I do want to make the point—and I am very grateful for the question—that the debate desperately needs a dose of reality. The perception that Australia’s broadband speeds are among the slowest and the take-up rates among the lowest is simply untrue.

Australia’s position in the international broadband stakes is neither a laggard nor a leader. Australia is aligned with comparable countries. It has a healthy and growing telecommunications sector and it has a significant investment in infrastructure which has supplied the majority of the Australian population with fast broadband speeds. The reality is that, over the last 12 months, Australians connected to broadband faster than any other OECD country except Denmark. There are now nearly four million premises connected to broadband. That is the OECD measurement for 1 July 2005 to 30 June 2006. Historically, Australia’s broadband take-up is well above the OECD average. So, before everyone gets hysterical about broadband, let us understand the facts.

In relation to broadband speeds, more than 80 per cent of Australian households and small businesses already have access to fast broadband. About 80 per cent of households can access ADSL broadband technology providing speeds of up to eight megabits from 19 different providers, and 14 providers are currently supplying speeds up to 24 megabits to about four million premises. Of course, Telstra is now rolling out its 3G network, which it claims will offer speeds of up to 14.4 megabits by 2007 to 98 per cent of the population, and HFC cable networks offer about 17 megabits.

So I think we have to put this well and truly in context. International comparisons and off-the-cuff statements by visiting businessman—or, indeed, resident ones—who may have a commercial interest in the government doing a bit more heavy lifting than we are doing in relation to subsidising services that help their business is not something that this government will entertain.

Kate Lundy (ACT, Australian Labor Party, Shadow Minister for Sport and Recreation) Share this | Link to this | Hansard source

Mr Deputy President, I ask a supplementary question. Noting that, of course, broadband penetration in Australia is in fact getting worse, and given that News Corporation, PBL, Fairfax, the ABC, the Internet Industry Association, the Australian Local Government Association, the OECD, the World Bank, the World Economic Forum, analyst Paul Budde, the former Telstra CEO and the current Telstra CEO all agree that Australia is a broadband backwater, why is the minister the only person in the country still in denial about the nation’s inadequate broadband infrastructure?

Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

Obviously Senator Lundy could not think of a supplementary question, because it is precisely the same as the first one. The point about it is that I have set out in great detail here the fact that I do not agree with those comments. Indeed, I would suggest that if you have a look at the penetration rates they are certainly not sustainable comments. If you look at countries like Korea, for instance, it has about 100 megabits available across the country but only 14 per cent of the population actually subscribe. That is because not everybody needs or wants a particular speed. It is something where it is important that we continue to invest in the rollout of fast capacity, scalable broadband. That is precisely what this government is doing.

Opposition Senators:

Opposition senators interjecting—

Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

I can understand that it annoys the Labor Party that this government has over $1 billion to invest in very important services. That is precisely what we will get on and do, while Labor just harps.

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.