Independents stymie Turnbull on NBN cost benefit analysis

Stan Beer
Monday, 29 November 2010 15:00

IT Policy - Government Tech Policy

Signaling that they want an NBN at any cost, the four independents in the House of Representatives have voted down Opposition communications spokesman Malcolm Turnbull's attempt to put through an amendment to subject the FTTH project to a cost benefit analysis.

In past weeks, Mr Turnbull has consistently argued that business case for the proposed $35.7 billion NBN should be subject to the scrutiny of the Productivity Commission.

Mr Turbull's view appeared to have gained a boost last week when Reserve Bank Governor Glenn Stevens told a parliamentary hearing that major publicly funded projects should be subject to a proper cost benefit analysis.

However, neither the Greens' MP Adam Bandt nor the four independents in the lower house, including maverick conservative MP Bob Katter, have been swayed by the arguments for a cost benefit study.

Likewise, the Greens and cross benchers in both houses, including lone wolf Nick Xenophon, have not forced the issue with the Government on releasing full details of its 400-page NBN business plan prior to passing legislation for the structural separation of Telstra.

With today's defeat of Mr Turnbull's last ditch attempt to force through a cost benefit analysis amendment to the NBN legislation, the Government has scored a massive win while making minimal concessions to the non-Labor majority in both houses of parliament.

With the legislative obstacles cleared for the NBN project to proceed, the Government must now negotiate with the Telstra Board which in turn must convince shareholders to vote for the voluntary structural separation and to decommission its fixed line networks while renting its ducts and exchanges to the Government.

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