Senator ALLISON —My question is to the Minister for Communications, Information Technology and the Arts. I refer the minister to his decision yesterday to allow Telstra to charge for directory assistance calls from mobile and business phone users. I ask the minister: what will this cost small business, and how long will it be before the government allows Telstra to charge residential users for 013 calls?

Senator ALSTON (Communications, Information Technology and the Arts) —I am delighted to get a serious policy question. The answer is that the majority of small businesses will pay around 40c per month. The reason it is important that this initiative be pursued is that some large businesses were making hundreds of calls a day on the 013 line. In fact, nine of them were making more than 200 calls a day. One small business was recorded as making 1,730 calls per month to directory assistance, while there were 11 other small business users making over 200 free calls per month—like call centres.

Senator Lundy —Maybe they needed assistance.

Senator ALSTON —Yes, like debt collectors. They need all the help they can get, don't they? Call centres, finance companies, auction houses—these are businesses that basically build it into their business plan. The fact that this service has been free until now is something that businesses, which can well afford to pay for it, were simply taking advantage of, to the detriment of many other callers. In fact, more than 50 per cent of mobile subscribers already pay directory assistance charges because they are either Optus or Vodaphone subscribers. They charge 40c. It seems only reasonable to me that Telstra should do the same.

Small businesses will not be disadvantaged in any shape or form. Six out of 10 small business lines made no calls to directory assistance over the two-month period April to May this year, which was the period of the sample. Of those who used directory assistance, 64 per cent made fewer than three calls per month; seven per cent made over 10 calls per month and accounted for 54 per cent of calls by small business to directory assistance. Most importantly, 48 per cent of small businesses are connected to the Internet. So they have the capacity to go online and access White Pages without any additional charge. I think it is perfectly plain that this is a reform that was long overdue. I was particularly interested to see that the shadow minister did not rule out the Labor Party doing precisely the same thing in their next term of government. Had we not done it, Labor clearly would have.

There is all the difference in the world between charging businesses and mobile users and residential customers. Almost all businesses and mobile users, by definition, can afford to pay. We have excluded the disabled, the not-for-profit organisations, the charities and the payphones; in other words, all those who deserve special consideration. I would have thought that most mobile phone users probably do not even realise that it has been a free service until now. There is all the difference in the world between businesses and mobile users and residential.

We would take a very different approach if and when we were ever asked to consider the matter. We have not. But the minister of the day has a legal obligation to consider matters that are put before him. All I can say is that that is not on the agenda. It is certainly not, in any shape or form, under consideration, and I have no reason to think that it ever will be. Certainly, I think this is a reform that took a bit of political courage—not much. Nonetheless, it is something that the Labor Party could have done in 13 years but simply never got around to doing. It is a sensible reform. It will ensure that we come into line with other telcos overseas. We have some important trade-offs. Now 70 per cent of calls will be answered within 10 seconds as a matter of commitment, which I think is very important.

Senator Carr —When will we see that?

Senator ALSTON —You will see that. In fact, you will hear it if you tune in. (Time expired)

Senator ALLISON —I ask a supplementary question. Again I ask the minister about residential users on 013. Can he categorically assure the Senate that these will not be charged? Further, the minister's press release says that all phone users contribute to subsidising the directory assistance service. If this is the case, how much does the minister expect other charges to fall as a result of the charges being applied to 013 calls?

Senator ALSTON (Communications, Information Technology and the Arts) —This is simply part of the business mix. If Telstra makes more money from one area rather than another, it has the capacity to reduce prices in a whole range of areas. Does Senator Allison think we are going to get out there and tell Telstra that they should bring down prices in one particular area just because they have at long last been able to recoup the cost of these services? Bear in mind that residential users take up about 46 per cent of the calls. There are currently 440 million calls a year to directory assistance. That number has gone up 40 million in the last 12 months. So it is a very significant impost on Telstra. It does not provide them with any incentive at all to make that service efficient. However, once you make it a commercial activity, you encourage others to come into the business. That will hopefully bring down prices of this very service, as has happened with people like scoop.com in the UK and as I am sure will happen elsewhere. (Time expired)