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Tuesday, 23 November 2010
Page: 1889


Senator BRANDIS (2:14 PM) —My question is to the Minister for Communications, Broadband and the Digital Economy, Senator Conroy. I refer to the services contract with Greenhill Caliburn to advise on the ‘robustness of the key assumptions’—a euphemism if ever there was one—underlying the suppressed NBN business case and the 2010-11 corporate plan. I refer also to the answers given by Senator Wong to Senator Cormann. If the government has so little confidence in its own business case that it has now called into question the very assumptions on which it is based, and if the Minister for Finance and Deregulation has so little confidence in the minister for broadband that she has now decided to second-guess his judgment, how can the public and the markets have any confidence in the minister?


Senator CONROY (Minister for Broadband, Communications and the Digital Economy and Minister Assisting the Prime Minister on Digital Productivity) —Unfortunately that question is based on a string of false premises, false assertions and some allegations tossed in just to round it out. The NBN Co. has finalised its three-year corporate plan and its 30-year business plan. The company submitted the plan to the government, as I said yesterday, on 8 November 2010. The government has announced that it will be releasing as much information as possible from the business plan. The government is currently considering the business plan, and it is reviewing it to remove commercial-in-confidence material prior to its release. The government has also commissioned Greenhill Caliburn to undertake an external review of the NBN business plan, and it is common practice for government to seek external expert advice relating to complex policy transactions.

Opposition senators interjecting—


The PRESIDENT —Senator Conroy, just resume your seat. When there is silence, we will proceed.


Senator CONROY —If those opposite took the time to think of one original question other than what is on the front page of the Australian and asked if there was other external advice being sought on the National Broadband Network, they might find out some other news as well. Ask just one original question that is not on the front page of the Australian and you might just learn something else. This occurred under the former Howard government, for example with the sale of Telstra. In recent times, external advice was sought for policies such as the Electricity Sector Adjustment Scheme and the Solar Flagships Program. Throughout the process of developing the National Broadband Network, the government has sought expert advice from a range of financial experts such as McKinsey and KPMG. In assessing the NBN business plan— (Time expired)


Senator BRANDIS —Mr President, I ask a supplementary question. If the minister is right that this is the orthodox practice of this government, why was the review forced upon his department by Senator Wong’s department rather than commissioned by the minister’s own department? Will the report on the NBN be released or, like the business case itself, will it be concealed from the public for fear of what it might reveal about the true cost to Australian households of the NBN?


Senator CONROY (Minister for Broadband, Communications and the Digital Economy and Minister Assisting the Prime Minister on Digital Productivity) —Yet again this is a question based on a false assertion. It is based on an inaccurate report. Those opposite do not know quite as much—

Opposition senators interjecting—


The PRESIDENT —Just resume your seat, Senator Conroy. When there is silence we will proceed.


Senator CONROY —As I was saying, those opposite do not quite have the information they think they have. But they can keep making false assumptions all day, because this additional advice demonstrates that the government is taking a diligent and responsible approach to implementing the NBN, ensuring that the government has access to the necessary technical expertise. When you have some correct information on which to base your question— (Time expired)


Senator BRANDIS —Mr President, I ask a further supplementary question. Has the minister read the service contract between the Australian government and Greenhill Caliburn or has the minister for finance not shown it to him? Can the minister understand why he has lost the confidence of the public and the markets when his handling of the biggest project in Australian history has been a masterclass in confusion, concealment and incompetence?


Senator CONROY (Minister for Broadband, Communications and the Digital Economy and Minister Assisting the Prime Minister on Digital Productivity) —The government is focused on ensuring that the NBN is delivered in an efficient and cost-effective manner. As the Prime Minister has made clear, NBN Co.’s business plan will be released in December. The government stands by the major findings of the business case, including the fact that the NBN is both viable and profitable. It would be remiss not to undertake standard due diligence just as previous governments did, and that is exactly what this government is doing.


Senator Brandis —Mr President, on a point of order: I asked the minister if he had read the service contract. He obviously has not even seen it. He obviously had it imposed upon him by Senator Wong. Can the minister address the question: has he read the contract?


The PRESIDENT —There is no point of order. The minister is answering the question. The question was much broader than just that; that was part of the question. I cannot instruct the minister on how to answer the question, but I can draw the minister’s attention to the fact that there are 17 seconds remaining to answer the question.


Senator CONROY —As I was saying before Senator Brandis raised another bogus point of order, any suggestion that this is out of the ordinary shows a complete lack of understanding of government’s— (Time expired)