Don Farrell (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy. Can the minister advise the Senate of the significance of the groundbreaking heads of agreement between Telstra and NBN Co. that was announced on Sunday and how it provides a clear path forward for the rollout of the wholesale-only national broadband network?

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

I thank Senator Farrell for his ongoing interest. As I said yesterday, the agreement that has been reached between Telstra and NBN Co. will be remembered as the moment the Australian government and the industry joined together to revolutionise the telecommunications sector in this country. The agreement, once finalised, will mean that Telstra will be involved in the NBN build. It will mean that the build is more efficient, cheaper and quicker, with less use of overhead cable. The agreement will also provide a greater level of certainty for all players in the industry on the pathway forward towards a genuinely competitive telecommunications sector—

Opposition Senators:

Opposition senators interjecting—

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

The time for debating these issues is at the end of question time.

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

based on a wholesale-only network platform—

Mathias Cormann (WA, Liberal Party, Shadow Minister for Employment Participation, Apprenticeships and Training) Share this | Link to this | Hansard source

Senator Cormann interjecting—

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

Senator Cormann!

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

where all providers receive genuine, equivalent access. Yesterday in this place, Senator Cormann claimed that this is not a real agreement—

Mathias Cormann (WA, Liberal Party, Shadow Minister for Employment Participation, Apprenticeships and Training) Share this | Link to this | Hansard source

It isn’t.

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

and, by implication, that Telstra was trying to spin this announcement. That is what you said. This is an outrageous claim, without basis or credibility. The government, Telstra and NBN Co. made it abundantly clear in the announcement that this was a financial heads of agreement and that there was still further work to be done.

Opposition Senators:

Opposition senators interjecting—

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

Order! You are chewing up question time with interjections. Interjections are disorderly; you know that. It has been drawn to your attention already, Senator Cormann. If you want to participate in the debate at the end, there is time at the end of question time to debate the answers.

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

In its media release yesterday, Telstra indicated that, while there were some outstanding issues to resolve before this progresses to completion, ‘we believe the proposed transaction is in the best interests of shareholders’. That was signed by David Thodey and Catherine Livingstone. Yesterday Telstra CEO David Thodey was quoted as saying, ‘For two institutions like Telstra and the government to enter into a heads of agreement, we do not do that lightly. We do it with the intention of concluding it.’ (Time expired)

Don Farrell (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister further explain why the construction of a wholesale-only national broadband network is such a fundamental shift from the market structure in telecommunications from what we have today and what the competition benefits are that will follow from this?

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

Those opposite continue to try to suggest and imply—because it suits their political agenda—that Telstra is engaging in market manipulation. The agreement announced yesterday takes us one step closer to delivering a high-speed broadband platform and the structural reform the sector needs to drive genuine competition. This is what the NBN will deliver. The agreement provides us a clear, more certain pathway to this outcome. As Michael Malone, the CEO of iiNet—one of Telstra’s major competitors in fixed-line broadband markets—has said:

From our initial examination of yesterday’s announcement, the agreement is consistent with the Federal Government’s earlier commitments of an open access network, structural separation and regulatory reform.

It also means less unnecessary duplication of infrastructure—something that Senator Joyce yesterday just did not seem to be able to grasp. (Time expired)

Don Farrell (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the government’s commitment to proceeding with the National Broadband Network, can the minister advise the Senate of any alternative policies he is aware of in relation to the rollout of broadband in Australia?

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

The Rudd government has a clear plan for Australia’s broadband future that now has widespread support across the industry. On the other hand, the opposition has said they will shut down the NBN. Today the Age editorial said:

Building the NBN is a visionary task whose historic significance will outstrip even that of infrastructure projects such as the Snowy Mountains Scheme …

Unfortunately, as the Age also notes:

A grasp of how the NBN might transform Australian life seems, however, to have eluded Opposition Leader Tony Abbott …

Australians, present and future, deserve better from the alternative government. The opposition’s continued failure to understand the importance of broadband would wreak havoc with Australia’s economic future. (Time expired)