Coalition formalises Telstra reform delay plan

James Riley
Tuesday, 20 October 2009 10:48

IT Policy - Government Tech Policy

The Coalition has confirmed it will seek a deferrment of Stephen Conroy's telecommunications reform legislation until next year, after its joint party room and the shadow Cabinet endorsed the plan.

Debate on the reform package commences in the House tomorrow, and may be put to the Senate as early as next week.

All eyes are now on the Nationals' senators. While the Coalition response has been formalised, the issue sailed through a joint-party room meeting at which none of the Nationals senators were present because of commitments to Estimates hearings.

Shadow communications spokesman Nick Minchin said there was nothing in the legislation that required it to be "rushed through the Parliament by the end of the year" and wants consideration of the Bill put back until the Government’s implementation study is completed next year.

"The Coalition is not opposed to sensible telecommunications reforms and enhanced consumer safeguards, however, this legislation in its current form also affords new and almost unfettered powers to the regulator, which need to be carefully considered," Senator Minchin said.

Communications Minister Stephen Conroy has made his commitment – as recently as a Senate hearing last night – that Government wants the legislation passed this year.

At least two Nationals senators are thought to be sympathetic to the regulatory reforms that they regard as important to delivering better competitive outcomes for regional Australia in the telecommunications sector.

But a spokesman for Nationals leader Warren Truss said the party wanted more information from Government before it could make a decision on the reforms.

"The Implementation Study for the Government’s proposed National Broadband Network is not due until February. It is not reasonable to make a decision about the Government’s plans without knowing how, when and where the NBN will be met," a spokesman for Mr Truss told iTWire.

"Telstra is currently negotiating with the Government regarding models for separation of Telstra’s retail and cable networks. These negotiations are reportedly progressing constructively and should be allowed to run their course."

With the Nationals apparently agreed to seek a delay to the proposals in the Senate, Government will rely on the Family First Senator Steve Fielding and South Australian independent Nock Xenophon to get the legislation through.

Both have said they will wait until the Senate Committee looking at the legislation tables its report next Monday before making a decision on which way to vote, although they have been broadly supportive of the package.

Senator Minchin said if debate proceeds, the Coalition will propose detailed amendments. It is thought the changes it seeks relate to powers the legislation grants the Minister to enforce a mandatory separation of Telstra, and the power to preclude Telstra from participating in future auctions for spectrum.

Both Senator Minchin's office and the Minister's office will hold discussions with senators Fielding and Xenophon over the issue.

A spokesman for Senator Conroy told iTWire: "Every day of delay for these reforms is another day of higher prices, less choice and less service innovation for consumers and small businesses; including those in regional Australia."

"These reforms will create a more competitive market structure in telecommunications and provide improved safeguards for all consumers. They deliver long-overdue fundamental change in telecommunications for Australia's national interest."