Mr X still on board with Telstra reform

James Riley
Thursday, 21 October 2010 17:37

IT Policy - Government Tech Policy

South Australian balance of power senator Nick Xenophon remains a strong supporter of the Government telecommunications reform objectives - including provisions to structurally separate Telstra - and subject to a closer reading of the bill presented to Parliament yesterday will vote to approve its passage.

Clarifying comments made on ABC television's Lateline program last night, Senator Xenophon says he is also sees merit in Coalition calls for the Productivity Commission to investigate spending on National Broadband Network project.

But Senator Xenophon says he doesn't support delaying the passage of the telecommunications reform bill while a Productivity Commission cost- and social-benefit study is carried out.

Structural reform of the industry, and in particular the separation of Telstra, was necessary regardless of the NBN, he said.

The other swing vote in the current Senate, Family First's Steve Fielding, says he won't talk about his voting intentions for the reform legislation until he has met with the Government and the opposition next week.

But his on-the-record concerns about the bill previously centred on the provisions that forced the separation of Telstra - the so-called 'gun to the head' of the company - and are likely to have been relieved by Telstra's public support this week for the swift passage of the legislation.

The issue became conflicted this week, with Government accusing shadow communications spokesman Malcolm Turnbull of trying to delay the NBN by putting forward a private members bill that called for, among other things, the Productivity Commission cost benefit analysis.

Mr Turnbull meanwhile, argued telco legislative changes did not need to pass in order for the NBN construction to continue, and that the Parliament should wait for the Commission to investigate.

Senator Xenophon insists "the two issues are distinct." He says the Productivity Commission should be involved in the NBN oversight and transparency process anyway.

"Telstra separation and an NBN, one is not conditional on the other," Senator Xenophon told iTWire. "We need to (structurally) separate Telstra in any event."

While he saw merit in the private members bill proposed this week by Mr Turnbull, Senator Xenophon any investigation of the NBN project should be given much broader terms than a simple cost benefit analysis.

He stopped short of saying he would support the Turnbull bill, saying only that the Productivity Commission should have been involved in the NBN project anyway.

"I don't think the Productivity Commission's involvement is conditional on the (passage of) the Turnbull bill, it should be in this process anyway. And it should not just be a simple cost benefit analysis, it should be much broader," Senator Xenophon said.

"The Productivity Commission has in the past looked at issues not just for the dry economic analysis, but also the social benefits of various policies and policy changes. They are quite capable of looking at social benefits as well."

He said the terms of reference for a commission analysis of the NBN project could be informed by the NBN Company's business case which is expected to be handed to Communications Minister Stephen Conroy by the end of the month.

"But I think it is very important that we get this right. This is a very significant investment with the $43 billion of taxpayer's money that has been proposed and we should look at mechanisms that we can have in place for transparency, and for checks and balances, and the Productivity Commission should be a part of that process."

 

In order to pass the telco reform legislation, Government needs the support of the Greens and both Senator Xenophon and Senator Fielding. The Greens are supporting of the reforms, but have concerns about the privatisation plans for NBN Company. They also want consumer safeguards strengthened and will put forward amendments for consideration.