Opposition warns Senate may block broadband network bill

Opposition communications spokesman Nick Minchin has warned the legislation for the National Broadband Network contains a number of problems and may not pass the Senate in its current form.

Minchin, who took part in a Senate Environment, Communications and the Arts committee hearing yesterday, says certain requirements in the NBN Bill regarding the supply of information about current network infrastructure from carriers is ambiguous.

“From my perspective, I do have a range of concerns about this Bill. There has been no consultation with the industry in relation to this Bill, and so a lot of the concerns could not be made initially. I’m particularly concerned about the Bill requiring information from utilities and carriers. I am concerned about that, and asked whether the Government will restrict this Bill.”

“This is not just about the ambiguity of the legislation, because there are problems there with regards to the inadequate timelines for providing information, and the lack of provision for compensation for costs incurred, but also about no forewarning about the Bill to the industry.”

The legislation may hit carriers with fines of up to $250,000 if they do not provide detailed network information, with Minchin saying the bill was rushed through parliament with little consultation.

Research director for telecommunications analyst firm Ovum, David Kennedy, says the major telcos do not necessarily refuse to give information but are troubled the Government did not inform them of the legislation.

“The Bill they are talking about is basically describing that information which needs to be provided to the Government from utility companies. The fines are not necessarily an issue, as these companies have provided information before, so that’s not the problem.”

Kennedy says the actual substance of the legislation “isn’t surprising”, but that the major telcos expressed their dismay at the committee hearing yesterday about not being informed about the legislation beforehand

“The controversy surrounding this really refers to the fact these companies weren’t warned the legislation was coming. Of course if you haven’t been subject to these requirements, you’re going to be in the dark about what these obligations are and of course they would want to know.”

Minchin also warns that the Opposition will not consider any legislation regarding the NBN until the Government delivers reports about the cancellation of a $1 billion contract between the previous Howard Government and a joint venture between Elders and Optus to increase broadband connectivity in rural areas.

“The Senate has passed a resolution that it will not deal with the NBN until the Government provides the experts panel report into the failed RFP process and the full ACCC report…the Senate will stand by that resolution.”