21-June-2010
Portfolio Media Releases, Infrastructure
E & O E
SUBJECTS: Telstra/NBN announcement
SMITH:
The Federal Coalition has made it clear over many months that we believe Labor’s $43 billion National Broadband Network plan is reckless, risky and irresponsible. Nothing that has been said today alters our view. We all want to see better broadband but Labor’s plan is reckless and risky and we believe there are better ways to achieve better broadband. Before the next election we will outline a comprehensive alternative that is less costly, more responsible and more tangible than Kevin Rudd’s never-never irresponsible broadband policy.
ROBB:
Could I just add that there is absolutely no doubt that what the Government has announced today will mean much higher prices for customers in achieving and accessing broadband in the years ahead, much higher prices and it will come with a multi billion dollar taxpayer debt, that will have to be paid off over decades. This scheme won’t be delivered for 8 years, it confirms the Government’s record for being incompetent in delivery. They promised this for delivery by the end of this term, now it won’t even get put to shareholder agreement for another 12 months, it will be eight years before customers can access it. Not one person in Australia is currently accessing an NBN service, despite the fact the Government made a big profit, a big promise, with hand on heart at the last election to deliver a national broadband service. The Coalition will deliver a national broadband service without the tens of billions of dollars of taxpayer debt, with the private sector properly involved and in a much shorter timeframe and a much cheaper cost to customers. This is government gone mad, this is government trying to re-nationalise our telecommunications service. They want to take control of so many aspects of customer life and to ensure that the private sector is squeezed out yet again from the delivery of services. Just look at the Pink Batts scheme, the absolute disaster on that, the Building the Education Revolution where they have wasted billions and billions of dollars, this Government cannot be trusted to introduce an effective broadband service that already is going to cost $43 billion at much greater cost to the customer. It won’t be delivered for 8 years and there are people out there in regional Australia that are just absolutely dying to see a service which is effectively and quickly introduced. This is again, another reason why this Government has to go.
JOURNALIST:
Has the Coalition (inaudible) the cost of a similar sort of roll-out of the scheme?
SMITH:
What we have said all along is the focus should be on those areas who have got poor broadband service, as Andrew has just said. Prior to the last election, the Government, the Coalition Government had a contract to fix those broadband blackspots. This Government’s first action was to cancel those contracts, which has meant all those underserved premises, 900,000 underserved household have been stranded in broadband non man’s land. Our focus will be in those areas of most need and where the commercial sector can play it’s natural role, it should do. As Andrew said, if this Government, can’t put Pink Batts in ceilings and it can’t competently build school buildings, no Australian now, in there heart of hearts, believes Kevin Rudd will spend $43 billion without blowing out the costs, and that he will meet his promise to deliver the network within 8 years. We all know the time frame will blow out, we all know that when it comes to spending taxpayers’ money, there is no responsibility from this Labor Government. We will deliver a tangible, affordable, responsible plan that has the priority where it is most needed and that is those areas of outer suburban Australia and rural and regional Australia who are stranded on poor broadband services today.
JOURNALIST:
Aspects of this deal are going to the Senate this week, will you support the debate and passage of those bills?
SMITH:
Well, that is not quite right. There is a Telecommunications Bill in the Senate. This is a-gun-to-the -head-of-Telstra Bill, that is trying to force the break up of Telstra. We have said all along that we don’t support that aspect of the Bill, there are other aspects of the Bill on enhanced consumer measures and competition measures that we have said we have got a very open mind about. The Government, has been stalling this legislation, who knows if it will even come on. The one thing the is certain is that it is listed every week, the other thing that is certain is that the Government withdraws it from the listing each week.
ROBB:
There is no doubt that this legislation and the proposal to create the National Broadband Network by the Government, will be the biggest white elephant that has ever been created in the history of Australian infrastructure and we will oppose this. We will oppose the legislation, we will oppose this madness by the Government to put such a multi billion dollar tax payer debt hanging around everyone’s neck and we will put forward a scheme which will involve properly the private sector and some Government, but properly the private sector, it will come in much cheaper and much lower prices to consumers, without any serious debt for Australian taxpayers, and it will be delivered much earlier.
JOURNALIST:
And the fact that Telstra seems satisfied with this deal doesn’t change your view?
ROBB:
Well Telstra, if you look at the statements by Telstra today, they have been offered a (inaudible) of money, billions and billions and billions of dollars, they have put lots of proviso’s in their statements, it won’t get to Telstra shareholders for another 12 months at least for approval, there is no certainty in this announcement today, it is full of risk, full of debt and it is full of high prices for Australian customers of any broadband service in the future.
JOURNALIST:
Given that the deal is in motion, will it make more difficult for you to back out if you do win Government
SMITH:
No, look as Andrew just said, there are lots of provisos in what has been announced today, there are many hurdles ahead, many hurdles ahead, Telstra have made that clear and as Andrew said, it has been stated today, once, the final step would be shareholder approval naturally and that is in 2011. We have made it very clear that we would not proceed with Labor’s reckless $43 billion National Broadband Network, we will have a more responsible approach and it follows from that that we wouldn’t be proceeding with this as has been announced today.
JOURNALIST:
So if you won Government you wouldn’t be preceding with a partnership with Telstra, is that correct?
ROBB:
This agreement struck today is a very preliminary agreement. This is a non binding preliminary agreement which will require shareholders in some 12 months time to give agreement to, it will require the funding of tens of billions of dollars of infrastructure all borrowed all borrowed and all required to be paid back by the tax payer. We are not going to enter into the creation of a massive white elephant. The Coalition Government will announce well before the election, an alternative plan to build a national broadband network that will involved the private sector properly, it will involve some Government activity but overwhelming the private sector, it will be delivered much sooner with no massive taxpayer debt and it will deliver prices which the customer can afford.
JOURNALIST:
But not with Telstra?
ROBB:
Well Telstra may well be involved in some of the roll out but it will involve private sector competing for the opportunity to create the national broadband network which the frame work we will spell out in the weeks ahead.
SMITH:
Now let’s just be clear, today’s announcement is all about Labor’s NBN, that’s what the announcement is about. We are not proceeding with Labor’s NBN and that is why the announcement today is all about Labor’s NBN if it clears all those hurdles, lots of hurdles, more than a steeple chase, but because we will be pursuing something different we won’t be pursuing this agreement.
JOURNALIST:
On another matter, the Prime Minister’s chief mental health advisor has announced his resignation, what sort of message do you think that send to mental health suffers and people suffering with those issues.
ROBB:
I think this is extremely unfortunate. The Government’s created enormous expectation about what they could and should do about mental health, as it transpires today all they have done is to implement the programmes that has began under the Howard years and would have continued and built upon. This Government has failed in the delivery of mental health services in Australia and even the leaders of that sector are now so despondent that they are leaving the Government committees which advises the Government, it does again demonstrate that this Government is all talk and no action. You know I ask people can they think of any major programmes or major initiatives that the Government promise to deliver at the last election that has been delivered and this mental health issue is one of critical importance to the community and one where the Government has again demonstrably failed.