Turnbull accuses Conroy of subverting competition legislation

Stuart Corner
Monday, 08 November 2010 15:34

IT Policy - Regulation

Shadow communications minister, Malcolm Turnbull, has fired off another salvo at the government's proposed telecoms legislation, accusing the minister for communications, senator Stephen Conroy of trying "to utterly subvert the normal operation of the Competition and Consumer Act in regard to the NBN."

Conroy issued a press release on 28 October insisting that the legislation includes provision for ACCC oversight of the deal between Telstra and NBN Co. "The Bill already includes provision in section 577A for the ACCC to scrutinise and approve the competitive impacts of the agreement between Telstra and NBN Co. This agreement would need to be incorporated into the undertaking that Telstra lodges with the ACCC," Conroy said.

"The Bill authorises entering into the agreement and associated conduct for the purposes of trade practices law only if the ACCC accepts the undertaking. This removes any need for multiple authorisation inquiries, while still ensuring appropriate scrutiny of the arrangements."

Turnbull, however, maintains that, contrary to Conroy's claims, "The Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010 seeks to utterly subvert the normal operation of the Competition and Consumer Act in regard to the NBN'¦Section 577BA of the bill explicitly exempts the proposed $11 billion deal between the Government, NBN Co and Telstra from the normal operation of the competition laws and normal scrutiny of the ACCC. "

According to Turnbull, "to the very limited extent that the ACCC is permitted to consider the deal, it must do so using criteria determined by senator Conroy himself."

The Coalition proposes to amend all of these aspects of the bill, and Turnbull has accused Conroy of misrepresenting what those amends aim to achieve. "What is it about the NBN Co/Telstra deal that is so anti-competitive and anti-consumer that such a shield needs to be provided?" he asks.

Conroy insists that Turnbull understands that the legislation contains provisions for ACCC oversight but is being deliberately obstructionist. "Malcolm Turnbull has been briefed by my Department on the Bill so he knows his amendments are unnecessary. The Opposition are only interested in delaying and obstructing the Bill."