Government Senators' Report
At the conclusion of this protracted inquiry, Government
Senators endorse the remarks of the committee in its acknowledgement of those
who assisted the committee in its task including the secretariat and other
committee officers, witnesses and the researchers in the Parliamentary Library.
Government Senators agree with the admission of Opposition
Senators that they do 'not doubt that Australians need a broadband future',
and are pleased that Opposition Senators have reluctantly acknowledged that 'submitters
were generally in agreement that Australians need super fast broadband'.
Yet Opposition Senators represent a party that offers no
genuine pathway to a broadband future. Indeed, they have promised to shut down
the National Broadband Network. The truth is, after 2 ½ years in opposition
they have no alternative broadband plan that will deliver the outcome needed
for all Australians.
This follows their track record in government. The Howard government
had 18 failed broadband plans in 11 ½ years which left Australia falling behind
most developed countries.
The faith of Opposition Senators in the capacity of the
sector to co-operatively deliver an acceptable broadband future fails to
acknowledge the structural problems of the industry which have held the
Australian communications sector back.
Given how important affordable high-speed broadband will be
for growth and productivity across the economy, the Opposition’s plan to shut
down the National Broadband Network puts at risk Australia’s economic future.
Government Senators know that the only way that Australia
will have a broadband future – one in which all Australians are connected with
affordable services wherever they live — is if it builds a national, wholesale
only, open access network on which competition and innovation can flourish.
The government is committed to providing high speed and
affordable broadband to all Australian premises. This includes our regional
areas that, for too long, have had to put up with inferior services.
The NBN is crucial economic infrastructure for Australia’s
economic future and all consumers. It is important that Australian businesses
have the essential communications infrastructure necessary to compete with
other countries in our region that have, or are investing in, high speed
broadband.
The rollout of the NBN is already well underway, with first
services due in Tasmania in July, and NBN Co having announced its five first
release sites and the rollout of around 6000km of fibre optic backbone links to
100 regional locations.
In the committee's Final report, Opposition Senators return
to an earlier claim: that there has been a lack of transparency and that the
Implementation Study did not articulate the benefits of the NBN.
The purpose of the Implementation Study was to provide
expert advice on a range of matters that will guide the rollout of the NBN and
the policy settings around it. Whilst the Study was commissioned by the Government,
it represents the expert, independent views and advice of the Lead Advisor,
McKinsey and Company and KPMG.
The Study is a comprehensive report addressing the government’s
policy objective – it runs to more than 500 pages with 84 recommendations. In
preparing it, the Lead Advisor consulted with over 140 key stakeholders and
drew on international experience and research.
The Implementation Study indicates that high speed broadband
for all Australians is achievable, and can be built on a financially viable
basis with affordable prices for consumers. In fact, the Study finds that in a
number of areas it is possible to exceed the government’s original objectives.
Government Senators reject any notion that there has been a
lack of transparency. The government published the Implementation Study, in
full, on 6 May 2010. The Study contains detailed cost estimates and the
assumptions that underpin them. The government has sought to consult interested
stakeholders on its findings and recommendations. Moreover, at the request of
the committee, the Lead Advisor made itself available to brief the NBN Senate
Select Committee in person.
The Government notes the recommendation of Opposition
Senators that the Government accept the offer by Professor Henry Ergas to
conduct a cost-benefit analysis using the data of the Implementation Study. It
is relevant in the context of this inquiry that Professor Ergas has well-known
opinions on the NBN and has undertaken consultancy work for both Telstra and
the Liberal Party.
As the Government clearly stated at the time of the
Implementation Study's release, it was not intended as a cost-benefit analysis.
The Study undertook a detailed financial analysis, including
detailed revenue and cost modelling, and this analysis indicates that under a
range of realistic scenarios, NBN Co can build a strong and viable business
case.
While the broader economy-wide benefits of investment in
high speed broadband based on fibre infrastructure – including productivity
benefits and social benefits – were not explicitly modelled in this study, they
are well known and are endorsed by the OECD and in a range of other studies.
In conclusion, Government Senators recommend that all
outstanding legislation relating to telecommunications be passed by the Senate.
Senator Kate Lundy
Senator Glenn Sterle
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