James Riley
Monday, 10 May 2010 00:07
Opinion and Analysis
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A year is forever in politics. So six months must be a very long time indeed. In that time the Coalition’s fortunes have shifted dramatically – from a facing a humiliating rout at the next election to being in the hunt.
They don't have a snowflake's of rolling Labor at the federal election later this year. But they are certainly making themselves look competitive. And they will be.
Unity is more than half battle for an opposition. And right now, no-one wants to puncture the Abbott-inspired Coalition mojo by rocking the boat.
Six months ago, as the Nationals prepared to die in a ditch in vehement opposition to the Emissions Trading Scheme in the last days of Malcolm Turnbull's leadership of the Liberal Party, the party of regional Australia ran a real risk of splitting the Coalition permanently.
Things got so bad over the ETS that the Nationals toned down other areas of policy difference. Namely on the telecommunications reform legislation.
The Nats were prepared to go along with the then communications shadow Nick Minchin's deep opposition to bill – which contains, in addition to consumer and competition reform, provisions that would help force the functional separation of Telstra.
The telecommunications reform bill is listed for debate in the Senate next Wednesday. It contains fundamental structural changes to the way telecommunications industry works in Australia.
It is widely accepted that the changes will improve competition, ultimately leading to better services at lower prices for consumers, with all the productivity benefits that scenario brings with it.
The reforms also provide the new structural framework for an open access wholesale network – the NBN – to operate.
The Nationals understand this stuff all too well. The fact that its Page Research put forward its own proposal for a national optical fibre network in 2005 is well documented.
The Nationals also understand very well the impact that Telstra's dominance has had in regional Australia. Poor competition has meant higher prices and under-servicing. The Nationals also understand very well indeed how the vertical integration of Telstra has undermined the ability of potential market entrants to compete.
