Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the minister for very expensive broadband, communications and the digital economy, Senator Conroy. Following the complete failure of its first broadband plan, has the government conducted a full cost-benefit analysis of its $43 billion National Broadband Network mark II proposal? If so, will the minister table this analysis, and, if not, will the proposal be subjected to a full assessment by Infrastructure Australia in line with clear Labor Party policy?

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

I thank Senator Minchin for his question. As I have already said, the National Broadband Network is a nation-building initiative. This is a proposal that will transform this economy. It will transform and revolutionise the way that we live our lives, the way that we communicate and the way that industry does business.

Labor’s commitment to invest in a high-speed broadband network has been clear. We went to the 2007 election with a commitment to build a national broadband network. We are now following through and exceeding our election commitment. A range of studies have been carried out all over the world and have investigated the economic impact of broadband. These studies have consistently shown there are substantial benefits of high-speed broadband for the economy. Let me give you just two examples. As I have mentioned, a report by Access Economics found that a national high-speed broadband network will positively impact our economic performance by 1.1 per cent. A report by the Centre for International Economics in November 2008 said broadband could lift national economic imports by 1.4 per cent. The IMF and OECD are very positive about investment in productive economic infrastructure due to the stimulus and longer term benefit. Broadband fits this bill.

The opposition are now trying to pretend that they agree with investment in productive economic infrastructure, but they are against investment in high-speed broadband. Before the National Broadband Network announcement, Mr Turnbull supported investment in productive— (Time expired)

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is John Martin, the infrastructure specialist with RBS Australia, correct when he said, in reference to the minister’s proposed NBN, ‘What we need is a thorough business case that then gets put through Infrastructure Australia, a cost-benefit analysis’? Given that there could be over $20 billion of taxpayer’s money at risk, why won’t the government commit to a full cost-benefit analysis?

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

Thank you, Mr President. What is the plan of the opposition, who do not have a policy—and after 12 years with 18 failed policies? Let’s have a cost-benefit analysis on why you need to do it. We do not need any more studies, any more cost-benefit analyses, to know that this is an infrastructure investment that this country is crying out for.

Opposition Senators:

Opposition senators interjecting—

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

We could do another cost-benefit analysis or we could look at the Page Research Centre, who also looked at this. How many reports do those opposite need before they just accept that they have been responsible for leaving Australia falling behind the rest of the world, lagging in a critical piece of infrastructure— (Time expired)

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. What is the basis for the $43 billion NBN mark II costing figure? Have any credible independent estimates been carried out? Was it plucked out of thin air, as many in the industry suspect, or was it pinched from someone else—like the $4.7 billion figure for the government’s first failed plan?

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

Can I assure those opposite, and Senator Minchin, that an extensive calculation was done. Treasury was involved, Finance was involved and my own department was involved, and consultants that were employed by my department were included. This was something that we had many people look at, kick around and kick the tyres of. I note that there is nobody who has suggested that this is an underestimate. To those opposite who sit there and who turn their back on this chant to take Australia into the 21st century, I say that you sat there for 12 years and you did nothing. You deserve to be ashamed and condemned for your lack of progress in this area. (Time expired)