Oakeshott interview: NBN-Telstra deal

James Riley
Wednesday, 19 October 2011 17:34

IT Policy - Government Tech Policy

The chairman of the joint parliamentary oversight committee on the NBN Rob Oakeshott says workforce-related issues arising from the $11 billion Telstra-NBN Company deal might add to the cost of the national broadband network roll-out.

Mr Oakeshott said reports that Telstra and NBN Co would have two sets of workers on the ground during the NBN's contruction phase didn't look like the most efficient use of taxpayer funds and is seeking further details from the companies.

NBN Company chief executive Mike Quigley is among a raft of managers who will front the oversight committee when it meets in Sydney on Monday, along with representatives from the ACCC and ACCAN.

Mr Oakeshott told iTWire.com he would also raise concerns about the roll-out's risk management practices to ensure that too much of the risk isn't being shouldered by the public on behalf of Telstra shareholders.

"There are workforce issues I want to look at are around Telstra and NBN Co having two sets of workforce on the ground and whether there is a better and more efficient way to pull out a copper network and put in a fibre network," Mr Oakeshott said.

 

"In the taxpayers interest, I want to get some clarity around the workforce issues. There are also issues of risk, identifying really who is carry risk all the way through the deal and making sure that taxpayers interests have been risk-managed as well - or ideally better - than any Telstra shareholder interests," he said.

"There are conflicting interests that need to be looked after here, but that is part of the oversight role. And there will be some reflections in (the committee's) reporting on whether that has been managed on the Government side as well as it can be," Mr Oakeshott told iTWire.

Competition issues were naturally a core concern of the oversight committee, but Mr Oakeshott has lampooned Opposition suggestions that parts of the old Telstra copper network be left in place as a possible platform to compete with the NBN's fibre.

"The idea that you can somehow try and run a (copper) fixed-line network at the same time as a fibre network just isn't sensible, so I am surprised that there are some in the Opposition that are prepared to push that argument," Mr Oakeshott said. "

"It's trying to tap into the reality that this is a monopoly roll-out of a wholesale platform and then trying to somehow link a competition argument to leaving the copper in the ground. It's an argument that misses the competition point, substantially."

"I think everyone understands a monopoly wholesaler encroaches on competition principles by its nature.  (But) the oversight role can make sure that this is done with the national interest in mind, and in a way that ultimately increases competition within the telco market through retail commpetition."

Mr Oakeshott said the committee would produce a public report by the end of the year, having brought its reporting schedule forward. He expects to publish in late November or early December, and then again in June.

"The reason for doing that is that it lines up with Parliamentary timetables better, but also because in this six-month Window we felt there were a lot of decisions being taken that would have great significance for the next decade," he said. "Yesterday was a really good example of that (with the approval of the Telstra-NBN deal and release of NBN Co 12-month construction plan.)"

Finally, Mr Oakeshott effectively accused the Liberal member for Bradfield Paul Fletcher of grandstanding by making public claims that the NBN Company's selection of construction sites had been politicised. Mr Fletcher said the vast bulk of sites were in Labor-held seats and drew a line to politics.

"Paul Fletcher is a member of the committee, so it is an opportunity for him to drill down into detail and as chair I will certainly be inviting him to do that," Mr Oakeshott said."Instead of Members of Parliament playing games for headlines, in the committee we can drill down in a bit of detail and determine truth or otherwise."

"I have already heard Mike Quigley's response (at the Senate estimates hearing), which was that he would not have a clue which electorates the 28 sites were in."