James Riley
Sunday, 09 May 2010 11:18
IT Policy -
Regulation
Page 1 of 2
Shadow treasurer Joe Hockey has confirmed the Coalition will halt the $43 billion National Broadband Network project in its tracks if it is elected later this year, saying Kevin Rudd is risking massive expenditure on a "technology punt."
The KPMG-McKinsey implementation study on the NBN roll-out found the Federal Government would be required to tip $26 billion into the fibre network over the next seven years before the NBN Company had sufficient revenue to start funding its own capital.
Mr Hockey said the money is better spent elsewhere.
"This is $26 billion of more borrowings from the Federal Government … (when) every $1 billion is (potentially) a brand new major teaching hospital," Mr Hockey told ABC1's Insiders program.
"As well as all his other borrowings, (Kevin Rudd) now wants to spend $26 billion on a technology punt," he said. "That is another roll of the dice."
Mr Hockey said it was no surprise that the $25 million KPMG-McKinsey implementation study found that the project would be financially viable; suggesting it had found the answers government had sought.
The report found with the $26 billion investment paid back with an estimated return of 6 per cent to 7 per cent after 15 years. With the return "some time down the track" at 15 years, Mr Hockey says the project is risky and Government is being irresponsible.
