Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

My question is to Senator Conroy, the minister for Optus—I am sorry, I was just reading the Age newspaper—the Minister for Broadband, Communications and the Digital Economy. Is the minister aware of comments attributed to News Corporation chairman Rupert Murdoch during an interview with Terry McCann that if the government’s $43 billion National Broadband Network is to be sold off to private investors as promised then the government will have to ‘be prepared to write off half the cost openly upfront so that investors buying it could have a chance of a return’? Is the government prepared to write off taxpayers’ billions upfront in order to attract future buyers? If not, isn’t it possible that NBN will never be privatised or will have to be sold off by a future government at a fire sale price in order to rid itself of a debt laden white elephant?

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

I thank Senator Macdonald for his question. I note that, despite the resignation of three fellow frontbenchers when they crossed the floor, you were not among them. We will see what develops in the afternoon, Senator Macdonald. The answer is yes, I am familiar with Mr Murdoch’s comments, but the Rudd Labor government believes that all Australians, including large and small businesses, no matter where they live or are located, deserve to have access to high-speed broadband. I note the recent comments by a whole range of commentators, including Mr Murdoch, about the demands, commercial viability and the importance of wireless technology into the future. What I want to reinforce is that the discussions, firstly with Telstra, continue to be constructive. We are working to deliver on the National Broadband Network, notwithstanding those opposite who have sought to frustrate and block and have locked themselves into a 1990s or 2000 position.

I remember one of the great, proud chants from those opposite when they were in government was that during that period of incredible microeconomic reform by the Hawke and Keating governments they said, ‘We stood shoulder to shoulder with the Hawke and Keating governments in voting for all of those tough economic reforms.’ The tragedy now is that you are not going to be able to say that some day in the distant future when you are in government, because you have sought to block the reform package that we have put forward in this sector. You will not be able to make that proud claim that you have made in the past because you have become Luddites; you have spurned your economic reformist credentials. (Time expired)

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Why should Australia’s taxpayers or, indeed, investors have any confidence in the NBN project in the light of comments by the CEO of Australia’s third largest Telco, Paul Broad, who said ‘The NBN is absolute rubbish’ and ‘a complete waste of money’? Why would taxpayers or investors have any confidence in this project?

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

I am very glad that Senator Macdonald asked that question. I thought for a moment that was his resignation letter he was going to read from. But Mr Paul Broad’s most recent comments make an interesting comparison to the written submission of AAPT—Mr Broad’s company—after the NBN was announced.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, wait a minute. Interjections from behind you are interfering with the answer you are giving. Senator Macdonald is entitled to hear it.

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

I quote:

AAPT fully supports the Australian government’s initiative to improve the availability of fast broadband services across Australia and considers that the proposed wholesale only approach will benefit consumers as it represents a significant improvement from the current market structure where Telstra, the incumbent, is both dominant and highly vertically and horizontally integrated.

AAPT agreed with the ACCC that the NBN project provides the opportunity to finally correct earlier mistakes where Telstra was left in control. (Time expired)

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, are you denying that Mr Broad, the CEO of Australia’s third-largest telco, has said, and I quote again, ‘The NBN is absolute rubbish’ and ‘a complete waste of money’? Further, in light of comments by both Mr Murdoch and Mr Broad, does the minister accept that if the NBN project was subjected to a thorough cost-benefit analysis it would in all likelihood dismally fail the test?

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

As I was saying, Mr Broad’s company of which he is the CEO, who forwarded this submission in June 2009—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Did he say that?

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

It was from his company; I am assuming he ticked it off.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Did he say this?

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

I am fully aware of his comments. These mistakes have led to very serious implications for the development of competition in the telco industry. This was his company’s submission in June 2009, a few months ago. Paul Broad also made some interesting comments on coalition policy back in 2005, on structural reform of Telstra, when he said:

The energy industry did the reform and did it right. In fact the states that did the energy reform—and I have just spent seven years running an energy company—did it right. The feds that did the telco one got it wrong.

That is Mr Broad’s consistent, long-term position as is stated from 2005 to 2009. I cannot speak for Mr Broad but he did say on structural separation— (Time expired)