Mr ALBANESE (Minister for Infrastructure and Transport) (7:57 PM) —The government does not support this amendment. The general rule is that NBN Co. can supply only carriers and carriage service providers, but NBN Co. can also supply to specified utilities, for limited purposes.

There are three reasons why we need to permit supply to utilities in this legislation and therefore should not support an amendment deleting those clauses. Firstly, under existing legislation, utilities can do things that would otherwise make them carriers or carriage service providers without being classified as carriers and carriage services providers under the Telecommunications Act. The bill simply seeks to allow NBN Co. to treat them as carriers and carriage service providers when it comes to the supply of services. Secondly, these arrangements will support the growth of smart infrastructure management in Australia, including smart management of energy supply. A very important component of the future productivity growth of this nation is the development of smart infrastructure. Thirdly, it puts pressure on telcos to provide utilities with the services that they need.

The bill imposes tight limitations on the way the utilities use NBN Co. sourced services. They must use them for the sole purpose of carrying communications necessary to monitor and administer their own networks. Utilities cannot use these services to provide retail services to end users. Utilities and transport authorities will still need to purchase normal communications services, like telephony or broadband internet, from retail providers. Services that NBN Co. make available to utilities should also be available to other carriers and carriage service providers, and they could offer these to utilities if they wished.

This amendment moved by the member for Wentworth would deprive utilities of the benefit of arrangements they have now as well as undermine efforts to develop smart infrastructure and reduce incentives for carriers. That is the reason why the government does not support these amendments.