Mr CREAN (10:30 PM) —I rise tonight to talk about a pressing issue in regional Australia—the appalling state of telecommunications in the bush. Today the government had the opportunity to spell out its commitment to regional development. It actually placed the issue as a matter of public importance on the Notice Paper. But all it did in that exercise was to defend a scheme which was rorted by the National Party to prop up seats in the last election. Even the Liberal Party was unable to defend this scheme. The seconder in that debate, the Leader of the House, admitted to disappointing outcomes under the Regional Partnerships program. It was an unbelievable defence in a matter of public importance initiated by the coalition itself to argue the case for regional development.

What is even more staggering, however, is their failure on the key issue of regional telecommunications. It is very instructive that yesterday the Local Government Association released the 2005 State of the regions report. It delivers a message that Australia’s regions need quality telecommunications infrastructure to play their part and participate in the modern economy. The report spells out the stark reality that regions with broadband access are doing well while those regions without it are being left behind. It is clear that a high-speed internet connection today is essential for regional development—it is just as important today as the plain old telephone service was in years gone by.

The State of the regions report also shows that vastly improved access is not only necessary but feasible and affordable. It puts the cost at around $3 billion. There are other reports that cost it at less. But what is the government’s response? It fails on the financials, because basically its plan when it sells Telstra is for a trust fund that will yield just $100 million a year, which, we are led to believe by the government, will plug the gaps. No-one who knows anything about telecommunications in the regions believes that it will plug the gaps. It is a $1 billion fund, well short of the $3 billion that is needed.

Labor, on the other hand, proposed seven years ago that a proportion of the dividend stream from Telstra be set aside into a fund for reinvesting in the telecommunications infrastructure. Had that fund been established, it would have been worth in excess of $5 billion today. In other words, the concern can be met without selling Telstra.

The nation does need a national telecommunications plan—one that recognises that broadband access in all of our regions is essential. It is also true that, if we do it properly for the regions, it will benefit the nation as a whole. We need a plan that would rival the Snowy Mountains Scheme as an iconic commitment to our nation’s future. Not only has the government not provided this plan, not only has it provided insufficient funds, but it also has a huge problem with access and affordability in the regions with the ACCC’s proposal to allow wholesale price deaveraging of the Telstra network. This decision may make sense to a market economist. But it makes no sense if it forces rural consumers to pay 20 times more to access a basic telephone service. This is unacceptable. How can the government allow this to happen? We are sick of hearing the spats between Telstra and the ACCC. What regional Australia need is a commitment to affordable, accessible telecommunications. If they do not get it, they will be missing out. (Time expired)