Mr Cobb asked the Minister representing the Minister for Communications and the Arts, upon notice, on 11 February 1997:

What plans are in place to provide access to the Internet for rural Australians at a comparable quality and price to city areas.

Mr Warwick Smith —The Minister for Communications and the Arts has provided the following answer to the honourable member's question:

The Commonwealth Government recognises the importance of ensuring that areas outside capital cities participate in and benefit from the opportunities offered by access to new telecommunications services. The Commonwealth Government has put in place a number of initiatives that will enhance the development of, and access to, online infrastructure and services in non-metropolitan Australia.

The Regional Telecommunications Infrastructure Fund (RTIF) will provide $250m funding over five years to community initiated communications projects, which demonstrate a benefit to people in regional and rural Australia. The program will address both equity and economic objectives. On equity grounds, the Government considers that people in rural and regional areas should have the opportunity to access appropriate communications services at reasonable cost and on a similar basis to metropolitan users. On economic grounds, improved telecommunications infrastructure and services can stimulate economic activity, boost employment and assist in the provision of education, training, health and other government services.

The Minister for Communications and the Arts will appoint a Board to oversee the operations of the fund. It is anticipated that the Board will be announced within the next month, call for applications in the first half of this year, and that the first round of grants will be made in the second half of the year.

The Online Public Access Initiative (OPAI) has been established by the Commonwealth Government and $2 million was provided in the 1996-97 Budget for projects which enhance public access to online services. OPAI will provide grants to eligible non-profit organisations (such as public libraries or similar community groups, or local and state government bodies on behalf of such community groups) in both metropolitan and non-metropolitan areas. Projects which will enhance community access to online services in rural and remote communities are, however, a priority for the program. Approximately 20 projects across Australia, at an average of $100 000 per project, are expected to receive funding.

The program was advertised nationally in January and early February and project proposals were due by 28 February 1997. There has been widespread interest, particularly from rural and regional areas.

In addition to these new programs, the Information Policy Advisory Council (IPAC) has formed a special working group to investigate online infrastructure and services development in regional and rural Australia. The IPAC working group is considering the policy options available to the Government for promoting the development of infrastructure and information services in non-metropolitan Australia, and will report to the Government in March 1997. As part of its investigation, the working group is conducting an assessment of the current level of regional and rural online development, which will include an overview of prices and affordability.

The Government established the Standard Telephone Service Review to investigate the continuing appropriateness of service levels under the universal service arrangements. The review has recommended options for upgrading the actual services accessible under the universal service obligation, including a recommendation by the majority of the review that, by the year 2000 a digital data capability should be reasonably accessible to all Australians on an equitable basis, wherever they reside or carry on business. The Government will assess the recommendations, including gauging demand for services to be provided over lines with digital data capability in rural areas.

While these are significant initiatives, they cannot provide solutions to all of rural Australia's communications needs. In the longer term funding for the majority of communications infrastructure and services to metropolitan and rural consumers can only come from the private sector. The post-1997 telecommunications arrangements will assist this process and encourage the private sector to provide regional telecommunications services by opening rural markets to competitive pressures. The introduction of competition and the associated provision of new technology solutions in rural areas (eg. satellite services), offers the greatest potential to eliminate the distance based quality/cost differential between rural and metropolitan areas.