Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

by leave—I move Labor amendments (1) to (10), on sheet 8878, to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019:

(1) Clause 2, page 2 (table item 1), omit "Sections 1 to 4", substitute "Sections 1 to 5".

(2) Page 3 (after line 23), after clause 4, insert:

5 Modelling of Regional Broadband Scheme

Report

  (1) The Australian Competition and Consumer Commission (ACCC) must prepare a report in relation to the Regional Broadband Scheme that includes:

     (a) the estimates referred to in subsection (3); and

     (b) such other matters (if any) as the ACCC considers relevant.

  (2) The purpose of the report is to provide updated costings in relation to the amount of the base component specified in paragraph 12(1)(a) of the Regional Broadband Scheme Charge Act, using the same model and methodology that was previously used to determine that amount but taking into account changes to inputs and assumptions that have occurred since that amount was first determined.

  (3) The report must include an estimate of each of the following:

     (a) the total losses that have been incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2020;

     (b) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2009 and ending on 30 June 2040 (the total expected net losses);

     (c) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

     (d) the total of the reasonable losses likely to be incurred by NBN Co in relation to fixed wireless broadband and satellite broadband matters during the period beginning on 1 July 2020 and ending on 30 June 2040 (the totalexpected net forward facing losses);

     (e) the amount that the base component for a month (within the meaning of the Regional Broadband Scheme Charge Act) would be required to be in order for the Commonwealth to receive a total amount by way of charge imposed by that Act that would offset the total expected net forward facing losses, if it were assumed that paragraph 9(1)(b) of that Act had not been enacted;

     (f) the total expected number of chargeable premises by reference to which charge is to be calculated under the Regional Broadband Scheme Charge Act during the financial year beginning on 1 July 2025;

     (g) such other matters (if any) as the ACCC considers relevant.

Note: For paragraph (f), see section 11 of the Regional Broadband Scheme Charge Act in relation to how numbers of chargeable premises are used in calculating charge under that Act.

  (4) The report must specify the aggregated data inputs and the modelling assumptions upon which the estimates referred to in subsection (3) were determined.

  (5) In preparing the report, the ACCC:

     (a) must use the methodology and model that was used by the Department of Communications and the Arts' Bureau of Communications Research for the report entitled NBN non-commercial services funding options—Final report March 2016; but

     (b) must, in doing so, update the inputs and assumptions of the methodology and model to reflect changes that have occurred since the publication of that report.

  (6) Without limiting paragraph (5)(b), the following are changes that must be taken into account in updating the inputs and assumptions:

     (a) changes in the inputs for estimating the total number of chargeable premises by reference to which charge is imposed by the Regional Broadband Scheme Charge Act;

     (b) changes in the inputs for build costs in relation to fixed wireless broadband and satellite broadband matters;

     (c) changes in the inputs for estimating future capital expenditure requirements in relation to fixed wireless broadband and satellite broadband matters.

  (7) In preparing the report, the ACCC must assume that Division 6 of Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 had not been enacted.

Note: That Division deals with charge offset certificates.

  (8) Before the end of the 150-day period beginning when this section commences, the ACCC must:

     (a) give the Minister the report; and

     (b) make the report available on the ACCC's website.

  (9) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 5 sitting days of receiving it.

Use of the word " Regional "

  (10) To avoid doubt, the use of the word "Regional"in this section does not limit:

     (a) subsection 80(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999; or

     (b) subsection 13(3) of the Regional Broadband SchemeCharge Act.

Definitions

  (11) In this section:

fixed wireless broadband and satellite broadband matters means the matters referred to in paragraphs 13(3)(a) to (d) of the Regional Broadband Scheme Charge Act.

Minister means the Minister administering the Telecommunications Act 1997.

NBN Co has the same meaning as in the National Broadband Network Companies Act 2011.

Regional Broadband Scheme means the scheme embodied in:

     (a) Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999; and

     (b) the Regional Broadband Scheme Charge Act.

Regional Broadband Scheme Charge Act means the Telecommunications (Regional Broadband Scheme) Charge Act 2020.

(3) Schedule 5, item 1, page 197 (after line 17), after subsection 98B(1), insert:

  (1A) NBN Co must:

     (a) provide to the Secretary the following mapping data about each national broadband network serving area module:

  (i) the boundaries and identification code for the national broadband network serving area module;

  (ii) the dominant technology type of connections to the national broadband network within the national broadband network serving area module;

  (iii) the date on which the majority of premises within the national broadband network serving area module were declared ready for service by NBN Co; and

     (b) do so within 150 days after the Secretary gives a direction to NBN Co under subsection (4).

(4) Schedule 5, item 1, page 197 (after line 29), after subsection 98B(2), insert:

  (2A) The Secretary may, by written notice given to NBN Co, direct NBN Co to:

     (a) provide to the Secretary the following mapping data about each national broadband network serving area module:

     (i) the boundaries and identification code for the national broadband network serving area module;

  (ii) the dominant technology type of connections to the national broadband network within the national broadband network serving area module;

  (iii) the date on which the majority of premises within the national broadband network serving area module were declared ready for service by NBN Co; and

     (b) do so within 90 days after the Secretary gives the direction to NBN Co.

(5) Schedule 5, item 1, page 198 (line 2), omit "subsection (1) or (2)", substitute "subsection (1), (1A), (2) or (2A)".

(6) Schedule 5, item 1, page 198 (line 8), omit "subsection (1)", substitute "subsection (1) or (1A)".

(7) Schedule 5, item 1, page 198 (line 15), omit "subsection (2)", substitute "subsection (2) or (2A)".

(8) Schedule 5, item 1, page 198 (line 22), omit "subsection (2), (4) or (5)", substitute "subsection (2), (2A), (4) or (5)".

(9) Schedule 5, item 1, page 198 (after line 27), after subsection 98B(7), insert:

  (7A) Before the end of the 30-day period beginning on the day on which the Secretary is provided the mapping data under subsection (1A), the Secretary must arrange for the mapping data to be made available on the National Map website (https://nationalmap.gov.au) in colour-coded format.

(10) Schedule 5, item 1, page 198 (after line 29), insert:

national broadband network serving area module means a geographical region within NBN Co's fixed-line footprint which includes premises that are:

     (a) connected to the national broadband network; and

     (b) served by any of the following technology types of connection to the national broadband network:

     (i) fibre to the building;

  (ii) fibre to the premises;

  (iii) fibre to the node;

  (iv) fibre to the curb;

  (v) HFC.

Labor's amendments to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019, as outlined on sheet 8878, seek to achieve two things. First, on the topic of the modelling underpinning the charge, there does remain scope to improve transparency around the charge level, and there is broad agreement that the modelling undertaken in 2015 is based on inputs and assumptions that are no longer accurate. Given the government has not acted on the agreed joint standing committee recommendation of 2018 to update the model, these amendments propose that the levy modelling be updated and a report outlining certain matters be produced and published within 150 days. The responsibility for this task will be placed in the hands of the ACCC.

The purpose of the report is to provide updated costings using the same model and methodology developed by the Bureau of Communications Research in 2015, while taking into account changes to inputs and assumptions that have occurred since the levy charge amount was first determined. Some examples of inputs that are known to have changed are costs to deploy the fixed-wireless network and the number of premises over which the levy charge might be spread. We do not consider updating the model will be a complex exercise, given a model has already been developed and updated data inputs are available.

Should the Senate carry this amendment, we understand the government will propose a further amendment to give the ACCC power to seek information from NBN Co and other carriers to support their efforts to update the model. Labor supports that amendment. The amendment also proposes that the updated costings produced by the ACCC provide a breakdown for the proportion of the levy charge from costs which are already sunk and the proportion of the levy charge that derives from forecast future costs.

The second aspect of the Labor amendments is to improve NBN rollout data on the NationalMap website. This builds on an existing ALP amendment from the previous term of parliament to make rollout data available on the NationalMap. I want to acknowledge the government has incorporated that amendment into this reintroduced bill, and this amendment before the Senate today is a further supplement to that. These are reasonable and constructive amendments that seek to improve the bill. We hope they receive the support of the Senate on their merits.

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

Before I respond to Senator Kitching's comments, I'd like to table three supplementary explanatory memoranda relating to the government amendments to be moved to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019 and the government request for an amendment to be moved to the Telecommunications (Regional Broadband Scheme) Charge Bill 2019.

I thank Senator Kitching for her comments and for the Labor Party's feedback on their amendments. The government does accept the amendments proposed by the opposition to the Regional Broadband Scheme. These amendments do not impact on the government's original policy intent for the legislation and these amendments provide an opportunity for the Australian Competition and Consumer Commission to review the modelling for the scheme prior to its commencement.

Nonetheless, the government remains confident that the 2015-16 modelling undertaken for the Regional Broadband Scheme continues to provide a reasonable estimate for the introductory charge. The short time frame for delivery of the report by the ACCC means that it will naturally be limited in scope. In recognition of the limitations of this analysis, the minister intends to ask the ACCC to commence a review of the costings for the RBS in due course.

Under the legislation, the ACCC will review the base and administrative cost components at least once every five years, to ensure they are sufficient to meet the reasonable net costs associated with NBN Co's fixed-wireless and satellite networks and the administrative costs of the scheme.

The government's complementary amendments, on sheet QL144, make sure that the ACCC will have access to current information from carriers as an input to its report.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

Labor supports these government amendments. Ensuring the ACCC has timely access to updated data inputs will help support efforts to update the model. Our understanding was that the NBN and the industry would have cooperated with the ACCC, and, if this measure provides further certainty, we are happy to support it.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The question is that opposition amendments on sheet 8878, moved together by leave, be agreed to.

Question agreed to.

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

by leave—I move government amendments (1) to (5) on sheet QL159:

(1) Schedule 3, item 1, page 99 (lines 23 and 24), omit "made after the commencement of this section".

(2) Schedule 3, item 2, page 100 (lines 6 and 7), omit "made after the commencement of this section".

(3) Schedule 4, item 13, page 142 (lines 29 and 30), omit the definition of designated start date in section 76, substitute:

designated start date means 1 January 2021.

(4) Schedule 4, item 13, page 143 (after line 2), after the definition of exempt premises in section 76, insert:

financial year has a meaning affected by section 78A.

(5) Schedule 4, item 13, page 147 (after line 27), after section 78, insert:

   78A Financial year

     For the purposes of this Part (other than section 85), the 6-month period beginning on the designated start date is taken to be a financial year.

Amendments (1) and (2) fine-tune the operation of statutory infrastructure provider, or SIP, standards and rules and, in particular, how they operate with instruments that may be made by the ACCC. The SIP regime requires SIPs to supply wholesale services and SIP standards or rules that could be made dealing with issues such as time frames for connecting and repairing services and other terms or conditions of supply.

The ACCC may also make instruments that deal with the same matters. In this case SIPs need to know which instrument has primacy. The bill currently provides that SIP standards or rules prevail over ACCC instruments made after the commencement of the section, to the extent of any inconsistency. It is possible that there could, at least in the short term, be a conflict between an SIP standard or rule and an existing ACCC instrument made prior to the commencement. Amendments (1) and (2) clarify that the SIP standards or rules will also prevail in this case, to the extent of any inconsistency.

Amendment (3) provides for the deferral of the commencement of the RBS to 1 January 2021 by replacing the proposed definition of 'designated start date' with the new definition, '1 January 2021'. Amendments (4) and (5) are consequential to amendment (3). If passed in May this financial year, the designated start date would commence on 1 July this year, at a time when the telecommunications carriers are offering hardship relief due to COVID-19. This would provide little time to make arrangements for the commencement of the scheme. The date change recognises the impact of COVID-19 on the telecommunications industry and will provide certainty to carriers and regulators about when their obligations under this scheme commence.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

Labor supports this amendment. To implement this legislation, carriers would have had to have changed their IT systems and, in some instances, develop new capabilities in order to determine levy liabilities in their enterprise footprints. We think this amendment to delay the commencement of the levy is sensible, given, as the minister has stated, the impact of COVID-19. We are quite close to the next financial year. With the priorities facing the industry in relation to COVID-19, having a commencement date of 1 July would have presented serious challenges, so Labor supports this amendment.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The question is that amendments (1) to (5) on sheet QL159, by leave moved together, amending the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019, be agreed to.

Question agreed to.

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

by leave—I move government amendments (1) and (2) on sheet QL144:

(1) Schedule 4, item 13, page 192 (lines 5 and 6), omit "one month after the end of the applicable reporting period", substitute "60 days after the commencement of this section".

(2) Schedule 4, item 13, page 193 (lines 3 and 4), omit "the second month that began after the commencement of this section", substitute "the month immediately preceding the month in which this section commenced".

These amendments modify the reporting month and lodgement time frame for the one-off report which carriers would be required to provide to the ACCC under existing section 102ZF. This amendment is complementary to opposition amendment 8878, as it would ensure that the ACCC has current information from carriers when undertaking its review of the Regional Broadband Scheme modelling. The government's complementary amendments on QL144 make sure that the ACCC will have access to current information from carriers as an input to its report.

Amendment (1) would shorten the period of provision of the one-off report by carriers within 60 days of the bill's royal assent. Amendment (2) updates the reporting period to the month prior to the due date of the report. The report gives a snapshot of the high-speed fixed-line broadband market after commencement of this bill. This information will be an important data source for the ACCC as part of preparing advice to the minister about the base component of this charge. This allows more timely information and support and it also supports the government's evidence based decision-making sooner, meaning better outcomes for consumers and also for industry.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

Labor supports this amendment. Ensuring the ACCC has timely access to updated data inputs will help support efforts to update the model. This is important and is helpful in a number of respects. We understand that the NBN and the industry will cooperate with the ACCC, and this measure provides further certainty, so we're happy to support it.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The question is that amendments (1) and (2) on sheet QL144, by leave moved together, amending the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019, be agreed to.

Question agreed to.

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I move the government amendment on sheet QL146:

(1) Clause 3, page 4 (lines 1 and 2), omit the definition of fixed wireless broadband service, substitute:

fixed wireless broadband service has the same meaning as in Part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Parliamentary Counsel

Telecommunications (Regional Broadband Scheme) Charge Bill 2019

QL146

Statement of reasons: why certain amendments should be moved as requests

Section 53 of the Constitution is as follows:

Powers of the Houses in respect of legislation

53. Proposed laws appropriating revenue or moneys, or imposing taxation, shall not originate in the Senate. But a proposed law shall not be taken to appropriate revenue or moneys, or to impose taxation, by reason only of its containing provisions for the imposition or appropriation of fines or other pecuniary penalties, or for the demand or payment or appropriation of fees for licences, or fees for services under the proposed law.

The Senate may not amend proposed laws imposing taxation, or proposed laws appropriating revenue or moneys for the ordinary annual services of the Government.

The Senate may not amend any proposed law so as to increase any proposed charge or burden on the people.

The Senate may at any stage return to the House of Representatives any proposed law which the Senate may not amend, requesting, by message, the omission or amendment of any items or provisions therein. And the House of Representatives may, if it thinks fit, make any of such omissions or amendments, with or without modifications.

Except as provided in this section, the Senate shall have equal power with the House of Representatives in respect of all proposed laws.

Amendment (1)

The effect of this amendment is to amend the Telecommunications (Regional Broadband Scheme) Charge Bill 2019, which is a proposed law imposing taxation. The amendment is covered by section 53 because that section provides that the Senate may not amend proposed laws imposing taxation.

Telecommunications (Regional Broadband Scheme) Charge Bill 2019

SHEET QL146

Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000

Amendment (1)

As this is a bill imposing taxation within the meaning of section 53 of the Constitution, any Senate amendments to the bill must be moved as requests. This is in accordance with the precedents of the Senate.

This amendment makes a technical correct to the definition of 'fixed wireless broadband service'. The charge bill incorrectly defines fixed wireless broadband service as having the same meaning as in the Telecommunications Act 1997, where it is not defined. The amendment corrects this definition and provides that such a term has the same meaning as in part 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999. This amendment does not change the policy intent or operation of the Regional Broadband Scheme.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

Labor will support this amendment.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The question now is that the request for an amendment on sheet QL146, amending the Telecommunications (Regional Broadband Scheme) Charge Bill 2019, be agreed to.

Question agreed to.

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I move the Australian Greens amendment on sheet 8958:

(1) Clause 2, page 2 (table item 7), omit "Schedules 4 and 5", substitute "Schedule 5".

The Greens also oppose schedule 4 in the following terms:

(2) Schedule 4, page 136 (line 1) to page 196 (line 7), to be opposed.

These are amendments which reflect the position that I put, on behalf of the Australian Greens, during my speech in the second reading debate. Schedule 4 sets out various charge, collection and other administration arrangements associated with the Regional Broadband Scheme, found in the Telecommunications (Regional Broadband Scheme) Charge Bill 2019, which the Australian Greens do not support. As I said in my second reading speech, the most appropriate, equitable and technology-agnostic means for funding the Regional Broadband Scheme is directly from the Commonwealth budget, and that remains the Greens' position. Temporary Chair, I seek your advice: I think I need to move these separately rather than together?

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Senator McKim, you can seek leave to move them collectively. The questions will be put separately.

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I seek leave to move them together.

Leave granted.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

Labor is opposing the Greens political party's amendments. We won't be supporting them. There are no doubt shortcomings and issues with the design of the levy. These issues have been identified by the ACCC and the Productivity Commission. However, to oppose the levy outright would undermine the economics of the NBN, and this is not something Labor is prepared to do.

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

The government does not support the Greens amendments. We believe it's inherently inconsistent and it's not practical to have a national broadband delivery obligation if there is no way to fund it, so we do oppose this.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The question now is that schedule 4, as amended, stand as printed.

Question agreed to.

The TEMPORARY CHAIR: We will now turn to Australian Greens amendment 1 on sheet 8958. The question is that the amendment be agreed to.

Question negatived.

Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019, as amended, agreed to; Telecommunications (Regional Broadband Scheme) Charge Bill 2019 agreed to, subject to a request.

Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019 reported with amendments; Telecommunications (Regional Broadband Scheme) Charge Bill 2019 reported with a request; report adopted.