ELECTION 2010: NBN on hold as political deadlock continues

The NBN Co. has put a freeze on all contracts and hiring plans as the post-election deadlock continues.

While the three independents who will hold the balance of power are supportive of investment in broadband services, it remains to be seen whether they will support the completion of the $43 billion NBN project or simply push for better broadband services in rural and regional areas.

The NBN Co. said yesterday said it would “continue to operate, plan and use existing resources” and says it will “seek to minimise any discretionary expenditure” while the political situations remains unclear.

That means no new big contracts of tenders.

“Where appropriate, NBN Co. will postpone or suspend significant existing tender processes during the post-election phase, while in parallel extending current in-progress tender responses and decision deadlines for the same period,” the company said in a statement.

The battle for the support of the independents – who will effectively decide whether Labor or the Coalition can form a minority government – looks set to continue for some days, with at least three seats still doubtful.

The latest projections suggest the Coalition will end with up with 73 seats, Labor with 72 seats, the Greens with one seat and independents with four seats.

If the Coalition can win the support of the independents, they can form government. However, Labor, which is likely to get the support of the Greens candidate, remains very much in the race.

Independent Rob Oakeshott said this morning that the three independents have asked both parties for information on policies and have also asked to talk with Treasury Secretary Ken Henry in order to discuss the state of the economy and election costing.

“We think this is about the economy,” Oakeshott told reporters.

“Counting is still underway and potentially, none of this matters depending on the numbers. But we are willing to go through the process and get organised.”

Fellow independent Tony Windsor said it was crucial to get information about the budget bottom line, and the impact of the major parties’ policies on future budgets.

One wildcard is independent candidate Andrew Wilkie, who looks like winning the Tasmania seat of Denison.

Wilkie says he will not be joining the other independents in a bloc.

“That’s not what I stood for and that’s not what I was elected for,” he told ABC TV this morning.

“We are beholden simply to the public interest. That’s true democracy.”

“I will probably need to talk to them eventually. But I’m not going to form a bloc with them as those three seemed to have formed a bloc already.”