Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. Is the minister aware of any economic studies that look at economic growth effects of modern telecommunications networks?

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

I thank Senator Cameron for his genuine interest in this policy area. The Senate may be aware that the Economic Journal, widely considered the leading economics journal in the United Kingdom, published a paper titled Broadband Infrastructure and Economic Growth. Of course those opposite and their leader are known to dislike economists so it is entirely reasonable to assume that they have not bothered to read this document. But like many other studies before it, it found that an increase in broadband penetration would raise annual per capita GDP.

Interesting, and a much more relevant finding to Australia, was that it also found that fibre-to-the-home technology is the only broadband technology that can provide general-purpose technology benefits. General-purpose technologies like fibre to the home and electricity create ongoing improvements in GDP because they underpin other technologies and multiply their value. The paper explains:

They do this by accelerating the distribution of ideas and information, promoting innovation and competition and aiding the introduction of new products, processes and activities.

This paper was discussed in an article today in the Australian Financial Review and the authors found that they could apply the paper to Australia and the NBN. They said:

The NBN will provide enormous potential for people in regional and remote locations to access a large suite of facilities and services including educational, commercial, social, entertainment, health and other opportunities.

(Time expired)

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a supplement­ary question. Can the minister advise the Senate on why the government's reforms in the telecommunications sector will deliver greater productivity benefits?

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

This government has not shied away from tackling the tough reforms in the telecommunications sector, the tough reforms that will lock in productivity and social benefits that we believe that this country deserves. We all know that genuine competition will lead to more choice, more affordable prices and higher quality services for all Australians no matter where they live.

Those opposite took a public monopoly, turned it into a private monopoly, and called it reform, and Australians were left to suffer the consequences of a broken industry structure which failed to deliver the investments in high-speed broadband, which the Gillard government is now delivering. It has taken the Gillard government to understand that true reforms of the telco sector and building the NBN will bridge the digital divide, assist in better educational outcomes— (Time expired)

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister provide the Senate with additional information demonstrating how the national broadband network continues to help small businesses in those towns where it is already being rolled out?

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

We on this side of the chamber make no apologies for improving access to technology that improves the quality of life for families and businesses small and large. Just yesterday, I spoke about a young family who moved to Minnamurra from Sydney because of the advantages that the NBN offered them at work and home. I am happy to advise that another small business has relocated part of its operations to the Minnamurra-Kiama Downs region, given the poor broadband they had previous­ly experienced. Shepherd and Shepherd, a small consulting business, is now looking at expanding into international operations through remote training and videocon­ferencing. This is what they had to say in yesterday's Illawarra Mercury: 'We could have that workshop without the physical presence of that instructor in the room.' (Time expired)