Save Search

Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Wednesday, 17 August 2005
Page: 141


Mr JENKINS (7:30 PM) —Regrettably, today we have had one of the greatest sell-outs in telecommunications policy that Australia has ever seen. We have seen the National Party, which championed the interests of rural Australians, go for an easy price in the debate that has been held in the coalition rooms.

There is no case for the full privatisation of Telstra, the telecommunications company. At least while it is held in majority public ownership, there is an opportunity for government to influence it. When it is fully privatised, there will be no pressure points to ensure that people in the regions get services equal to those in metropolitan areas or that people in outer metropolitan areas get services equal to those in the CBDs. Long have I put on the record in this place my concern that, in outer urban electorates like Scullin, the services provided are not up to the same standard that we see provided to CBDs and other areas within cities. These are the things that have been forgotten by the government in the continuation of its want to sell the whole of Telstra.

For outer metropolitan areas, the lack of infrastructure based competition means there is a need to find other ways of providing alternative metro fibre rings to ensure competition with Telstra. Many outer areas have black spots, as they lack the equivalent CBD broadband infrastructure. New advances in infrastructure technology are always applied first in CBDs and inner metropolitan areas, with delays in their implementation in outer metropolitan areas. These are the facts as we confront them now, and they will be made worse with the full sale of Telstra. We will see the community getting a poorer service at a higher charge. The government needs to realise that the Australian people know this. Polling that has been done indicates opposition at levels of approximately 70 per cent to the full sale of Telstra.

And what do we see? In 1996 the government first established the Natural Heritage Fund, out of which $1.2 billion over five years was to be set aside for the environment. What was the reason for this? The government was dealing with the Democrats and the Greens and needed to buy them off. Now we see the government having managed to convince The Nationals to support the sale of Telstra for $3 billion—$1 billion to repair the current infrastructure, and the interest from a $2 billion trust to fund upgrades to services after Telstra is sold. What a joke. Compare that to the $5.7 billion that Sol Trujillo has identified as being needed to bring Australia’s infrastructure up to world standard. Even with the partial privatisation of Telstra, we have seen line rentals rise from $11.65 to around $30. Australia with its broadband performance of 7.7 subscribers for every 100 people—the worst performance of any major industrialised country—is ranked 21st in the developed world. This is what we see from this government: short-term decisions, decisions that are not thought out in the long term in the national interest.

I am talking about local conditions that confront the people I represent, such as the difficulties that have been seen in new greenfield urban developments. An example is the Botanica Park development. It was not until the community came together that Country Wide, the Telstra program, was extended to take in outer metropolitan areas like the northern suburbs of Melbourne and, under HiBIS funding, we saw broadband services put into that community. We can see it in South Morang and we can see it in Epping North. If the developer does not put the infrastructure in at the time of subdivision, these people are left behind. As has been said, they are cut out of having proper businesses at home because, when it comes to competition, they are behind the eight ball.

These are the sorts of things we really need to see addressed. Citizens and businesses fear the consequences of a predatory privatised Telstra operating unchecked, with no obligation except to its shareholders. When it comes to decisions about investment in new equipment and technology, a fully privatised Telstra will make decisions that optimise the return for its shareholders and not for the community itself. It is these problems that the government must address in the national interest. (Time expired)