AAPT chief attacks National Broadband Network price tag

AAPT chief executive Paul Broad has attacked the Government’s $43 billion National Broadband Network, saying the plan is “absolute rubbish” and a front for the Government to break-up Telstra’s wholesale and retail divisions.

The comments come after separate attacks have targeted the NBN Co.’s recently appointed government affairs executive Mike Kaiser, saying his $450,000 salary is over-blown.

Broad made his attack at the latest Smart Business forum, held yesterday, and said there was already an abundance of high-speed broadband in major cities that was not being used to capacity.

“The NBN is absolute rubbish,” he told the forum. “It is a political ploy to separate Telstra. It is a political tool to beat Telstra up with because (former Labor government communications minister Kim) Beazley got it wrong all these years ago when they formed Telstra. This is a way of trying to correct it.”

Additionally, he said the future of high-speed broadband relied on the construction of wireless networks, and said there was not demand for more broadband than is currently available.

“The suggestion that we don’t have fibre in the ground today in Australia is rubbish. I don’t see the fundamental necessity for it (the NBN). The last thing we need is another government-run business.”

“It’s a complete waste of money. If they spent a tenth of it ($43 billion) they’d probably be right on the money. People want wireless as they want a more flexible life.”

Broad suggested rural areas could obtain faster speeds through satellites, and said the money spent on connecting rural areas would be better spent on education.

“I’ve never seen a six-lane highway built out to a farm house in Wagga,” he said. You build the appropriate technology to get the outcome you need. You use the right technology where it is cost-justified.”

Meanwhile, the NBN Company’s latest appointment has been attacked by opposition communications spokesperson Nick Minchin, saying the decision is a move to “reward Labor mates at the expense of taxpayers”.

Mike Kaiser was announced last week as the company’s new government affairs liaison, and it was revealed in Parliament yesterday he will earn a salary of $450,000 per year. Minchin has put forward a motion seeking a reason for the appointment, saying the salary is too much and “for a company that generated no revenue was absolutely outrageous”.

“It is absolutely outrageous that a spin doctor for Labor’s NBN Co. is being paid $450,000 per annum by Australian taxpayers to promote a company that generates no revenue, has no customers and provides no services to anybody.”

But senator Joe Ludwig told the Senate the decision was “an independent decision taken by the NBN Co., not by the Government”.

“NBN Co. advises that the salary is consistent with equivalent jobs in other companies,” the document containing Kaiser’s payment details stated. “The salary arrangements were not discussed with any members of the Government at any time.”