Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. I refer the minister to his repeated statements that he receives daily updates from NBN Co. I further refer the minister to my series of questions to him since 26 February this year where I have repeatedly asked him if he stood by the target of passing 286,000 premises with fibre by 30 June this year. I also refer the minister to his statement to the Senate this Tuesday that he was already seeking information from NBN Co. about current targets. I ask the minister: with NBN Co. now having had days if not weeks to update the minister on the viability of his target to reach 286,000 premises with fibre by 30 June, is this still the target of the minister, the government and NBN Co.? If this is no longer the current target, what is the current target? If the minister is unable to provide an updated target today, when exactly will he, assuming he continues to be the minister, be in a position to do so?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

Once again Senator Birmingham seeks to misrepresent what I say and, more importantly, demonstrates a profound ignorance of large-scale construction projects. This is probably because those opposite, in 11½ years of government, never actually built any infrastructure. As I said yesterday—and perhaps I should spell it out more clearly—this is a national infrastructure project. NBN deployment information is vast, detailed—

Senator Birmingham interjecting—

Obviously you did not notice that Willunga is in South Australia. Don't worry about it—I will get you a map. Perhaps you would like to visit it. You are a senator. Willunga is, technically, in Senator Birmingham's electorate. Willunga has had tremendous take-up. I think this week possibly Willunga continues to lead the country in the take-up of the NBN and the activations in the area of Willunga. I think it was approaching 60 per cent, roughly, last time I was discussing it.

NBN deployment information is vast, detailed, complex and involves, importantly, multiple construction partners. I have asked, as I have said, NBN Co. for a full assessment of their progress towards their 30 June 2013 deployment targets. I am expecting NBN Co. to announce new information this afternoon—very, very shortly. It is not simply a question of NBN Co. pressing a button. I repeat: there are four principal construction partners and multiple subcontractors that are involved in the process of these estimates. My advice, as I have said, is that they are very close to finalising this information and they will be making a full statement this afternoon. (Time expired)

Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to the minister's comments this morning that the NBN Co. will be refunded $2 million paid to contractor Syntheo for workforce mobilisation following its handing back of the rollout in the Northern Territory. Given the failure by Syntheo to connect any premises during the volume rollout stage in South Australia, Western Australia or the Northern Territory, why is the NBN Co. getting back only 3.9 per cent of the $50.9 million already paid to Syntheo? What additional costs will NBN Co. face as a result of undertaking the construction themselves?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

As I indicated in a press conference this morning, NBN Co. is taking back the Northern Territory construction. Syntheo will remain the construction partner in Western Australia and South Australia. The taking back of the Northern Territory allows them to continue to roll out and to overcome the challenges, which have been significant, of some of our largest construction companies in the country. Syntheo, for those who are not familiar with it, is a joint venture between Service Stream and Lend Lease, two of our biggest construction companies, and they have been having some difficulties. We are receiving back the mobilisation payment in the Northern Territory. I think it is around $2½ million. We have made it a condition that that money be returned when we took back that project. (Time expired)

Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. On what date was the minister first informed by the NBN Co. board or any director that NBN Co. would fall short of its objective of passing 286,000 premises with fibre by June this year? Did the minister have any discussions with any director of NBN Co. or receive any information about their inability to meet the 286,000 premises target on or about 26 February this year?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

I think I first received advice following the Senate estimates—clearly when the Senate estimates indicated, and Mr Quigley indicated, that Syntheo were having difficulties. I think he revised down the forecast at the Senate estimates, and I think you asked him a string of questions. Following that NBN Co. went into further discussions and consultations about where Syntheo were up to. I received a letter from the NBN Co. board in early March—I will have to check the exact date for you, Senator Birmingham—which indicated there were problems at Syntheo and that they were seeking to get more information and what remediation action they would take. As I have indicated, NBN Co. has taken back the Northern Territory— (Time expired)