Kate Lundy (ACT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann, in his capacity as shareholder minister for the NBN. I refer to media reports of advice prepared by NBN Co. during the caretaker period for the incoming government, which states:

… it is unlikely that NBN Co will meet the 2016 deadline to upgrade the fixed network to enable Australians to have minimum download speeds of 25Mbps.

I note also Ziggy Switkowski's evidence to a Senate committee last week that '2016 as a deadline is very, very demanding.' Will the minister confirm that the government will meet its promise that by 2016 every Australian household and business will have access to broadband speeds of at least 25 megabits per second, or will this be another broken promise?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The NBN project is another fine mess that we inherited from the Labor Party. Since the election this government has worked carefully, methodically and purposefully to fix the mess that we inherited from the Labor Party. We have done exactly what we said before the election that we would do, and that is to go through a proper strategic review of NBN Co. That review is about to be released and it will be there for all to see: the fine mess that Senator Conroy and Senator Wong, shareholder ministers of NBN Co., made under the previous government. This government will deliver faster, better broadband more affordably for taxpayers and more affordably for consumers. We are fixing the mess that you created.

Kate Lundy (ACT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister confirm that the coalition's flawed, second-rate fibre-to-the-node broadband plan will not be capable of delivering premium high-speed services to Australian households and businesses? Will the minister also confirm that NBN Co.'s current revenue forecast will have to be revised down by as much as 30 per cent because the coalition's fibre-to-the-node plan cannot deliver these services to Australian businesses and households?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I completely reject the assertions that are the premise of the question. We are focused and we will deliver faster, better broadband sooner than Labor would have, and we will do it in a way that is more cost-efficient—to the benefit of taxpayers—and more affordable for consumers.

Kate Lundy (ACT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer the minister to media reports that show that NBN Co. had identified, validated and was on track to implement substantial cost savings in its fibre-to-the-home rollout, and yet current NBN Co. chair, Ziggy Switkowski, at last week's Senate hearings dismissed these cost savings as 'not passing a special test'. Will the minister confirm that NBN Co. has identified billions of dollars of cost savings? And does he support rejecting these savings just so Mr Turnbull's mates can deliver a 'special' NBN review that justifies the government's switch to a second-rate broadband— (Time expired)

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Thank you. When you are in a hole, you really should stop digging. This NBN Co. project that we inherited from the Labor Party was a complete mess. NBN Co. under the previous government failed to meet every single one of their targets. They even failed to—

Honourable Senators:

Honourable senators interjecting—

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

Senator Cormann, resume your seat until I have order on both sides.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

For the benefit of Senator Lundy: guess what? There was an election. And guess what? The Australian people voted for our policy, for faster, better broadband services; more affordable for taxpayers, more affordable for consumers—

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, on a point of order: The Minister for Finance was asked a very specific question about cost savings; he has not come close to the answer. If he does not know, he should sit down. But his answer currently bears no relevance whatsoever to the very specific question that was asked.

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

I am listening closely to the minister's answer. I believe the minister is answering the question. The minister still has 23 seconds remaining to address the question.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Thank you. For the benefit of Senator Wong, I will say it again slowly: the coalition will deliver faster, better broadband services sooner than Labor would have, cheaper for taxpayers. Guess what? Those government change deniers over there better get used to the fact that very soon it will be there for all to see what a fiscal mess Labor left behind in the NBN. (Time expired)