NBN Co authorised to acquire assets now: Conroy

James Riley
Monday, 19 October 2009 18:45

IT Policy - Government Tech Policy

NBN Company executive chairman Mike Quigley has both the authority and capacity to acquire assets related to a national broadband network now, even before the Government's implementation study is completed in February.

Communications Minister Stephen Conroy said Quigley was lead negotiator in discussions with Telstra and other infrastructure providers, and did not need direction from the implementation study to inform those discussions.

Senator Conroy told a Senate Estimates hearing the implementation study was being conducted by Lead Advisers KPMG and McKinsey under a contract for the Communications department – not the NBN Company.

Although the Lead Advisers would communicate with Quigley as head of the company, its purpose was not to provide advice to the NBN Company. Rather its role was to advise the government NBN steering committee and the oversight Ministers - Senator Conroy and Finance Minister Lindsay Tanner - as a source of independent expert advice.

If Quigley found a good asset and a fair price, he had the authority to move ahead and secure that asset, Senator Conroy said.

But shadow minister Nick Minchin said there were so many unknown factors that could change the face of NBN planning that it was "quite extraordinary" Quigley was already allowed to proceed with asset acquisitions.

If the implementation study was not being used to inform major asset acquisitions, Senator Minchin said it was hard to imagine what its purpose was in the planning for the NBN.

"I find it quite extraordinary that prior to the completion of an implementation study which is costing tax payers $25 million – and which is all about the design of this thing, the architecture, the financing,  the whole project – that the Government is happy to let Mr Quigley go off with taxpayers' money to buy-up existing assets," Senator Minchin told iTWire.

"What's the point of having this implementation study? If Mr Quigley can rush off with taxpayers money and buy up existing assets – effectively re-nationalising private assets?"

Meanwhile, it is understood two pieces of legislation dealing with the NBN may be put to the Senate as early as next week: The first dealing with the requirement of utilities companies to provide Government with an inventory of facilities and existing assets that may have a bearing on NBN construction and the second being the telecommunications regulatory reform package.

It had been thought the legislation might be put during the November sitting. But with debate ETS legislation now looking like it will fill the two November weeks – and possibly beyond – Government may seek passage of its communications legislation when the Senate resumes next week.