Senator IAN MACDONALD (6:00 PM) —I want to make a few comments on this government document, Digital television transmission and reception. It is an interesting document. It raises this whole issue of broadband and communications. It is important that we emphasise how much difficulty the government and the department are in with all things broadband and all things to do with communications—for example, the National Broadband Network, which has been talked about so much in recent days. When you hear Senator Conroy lauding the benefits of the NBN and talking about Tasmania, it needs to be emphasised and understood that in Tasmania NBN Co. is giving away their services for free for a period of nine to 12 months. This means that the retailers, the internet service providers, are able to provide the service using the NBN at a reasonable cost. NBN Co. are not charging the internet service providers for the use of their services for the first nine to 12 months. This gives a completely false impression of the worth of the NBN.

When we asked Mr Quigley, the head of the NBN Co., at estimates just what he was going to be charging for the provision of this fibre optic service to the internet service providers, he said, ‘We’re still looking at it.’ When we questioned him further, it became clear that they were simply giving it away. How is this NBN Co. ever going to return a profit or encourage private investment—as the government assured us it would—when it gives away the $43 billion investment that it is making? It highlights how without merit Senator Conroy’s administration of this whole department is, including the administration of issues of transmission and reception of digital television, which the report is about.

In seriousness, when Senator Conroy gets to his feet and lauds how good the NBN is in Tasmania, he should come clean; he should be honest; he should tell people that the $43 billion investment is being given away. There is simply no charge for it. There will be a charge in time to come, and the price will then increase from what it is now, which is a reasonable amount. They all have different prices, but it is around $50, $60 or $70 a month. But it will go up to something like $200 a month once NBN Co. actually—

Senator McLucas —How do you know?

Senator IAN MACDONALD —Well, you tell me where I am wrong. What is it going to be? You are going to do for me what Senator Conroy would never do: tell me what they are going to charge so that we can make an assessment of what the monthly payment will be. That is the problem. That is the issue that I am raising. They are not charging anything at the moment. Your government, Senator, said that the NBN Co. would return a profit and that it would get private equity investors. Why would anyone invest in a company that is giving away its product? It has made an investment of $43 billion and it is not getting any return. They are just giving it away. How could it possibly happen? You tell me. I estimate that people will be paying $200 a month, and you tell me I am wrong. Tell me what they are going to charge and then we can work things out. But I guarantee that it will not be any less than $200 a month, because they have got to get a return on that $43 billion investment. The NBN Co. has to get a return. Imagine what they are going to have to charge to do that. Senator Conroy needs to explain this. I seek leave to continue my remarks.

Leave granted; debate adjourned.