Turnbull NBN cost study bill defeated

James Riley
Thursday, 18 November 2010 10:24

IT Policy - Regulation

Shadow communications minister Malcolm Turnbull's private members bill seeking to force Government to conduct a cost benefit analysis of the National Broadband Network has been defeated in the lower house by a single vote.

Mr Turnbull's National Broadband Network Financial Transparency Bill would have forced Government to refer the NBN project to the Productivity Commission for a full cost benefit analysis.

The defeat, by 73 votes to 72, comes as Government faces increasing pressure in both houses to produce more documentation related to the fibre roll-out, with the Senate seeking to force Communications Minister Stephen Conroy to table the NBN Company business plan.

Mr Turnbull told reporters that Government's refusal to release the NBN Co business until after Parliament has risen for the year demonstrated it was resisting scrutiny on the project.

"This is the largest infrastructure investment in our history but it has been subject to no rigorous analysis," Mr Turnbull said.

"We have seen no business plan. They are refusing to go before the public works committee. They are refusing to submit it to the Productivity Commission for a cost-benefit analysis.  And they are asking the Parliament, the members of Parliament here assembled, to vote on this project completely and utterly in the dark," he said.

The Government is indicating it will not submit to a motion passed in the Senate yesterday from Greens Senator Scott Ludlam and Liberal Simon Birmingham that called for the NBN Co business case to be tabled today. They also wanted to see Government's formal response to the KPMG-McKinsey implementation study.

Communications Minister Stephen Conroy is understood to have offered private briefings on the NBN Co business case to the Greens and independents from both houses.

South Australian independent Nick Xenophon - who holds a balance of power vote Government is relying on to pass it telecommunications reform legislation - has already expressed frustration that the Senate will be called to vote on the reforms before the business case has been released.

The Prime Minister Julia Gillard yesterday said Government would release the business case next month. It is understood Minister Conroy has yet to give the Cabinet a full briefing on its contents.