142/07
Tuesday 11 September 2007
Senate passes legislation to prevent Labor from abandoning the communications needs of the bush
The Minister for Communications, Information Technology and the Arts, Senator the Hon Helen Coonan said legislation protecting the $2 billion regional Communications Fund from being abolished by Labor was passed in the Senate today.
The Telecommunications Legislation Amendment (Protecting Services for Rural and Regional Australia into the Future) Bill protects the $2 billion principal of the Communications Fund so that only the interest earned from the fund’s investments - up to $400 million every three years - can be spent.
Senator Coonan said the passage of this important legislation ensures that the Communications Fund will continue to support areas that need ongoing targeted government assistance – that is rural and regional areas where commercial solutions are not always viable.
“Labor has committed to drain the entire $2 billion from the Communications Fund, rob the bush of its ongoing funding, and squander it on a commercially viable network in metropolitan areas which the industry has already publicly stated it can build without any taxpayer funds.
“While this is further evidence of the gross economic irresponsibility of the Labor Party, of bigger concern is what happens to the 3 million premises in rural and regional Australia that will not benefit from Labor’s broadband plan.
“Labor’s proposed broadband network is estimated to only reach around 75 per cent of the population, leaving 25 per cent of Australians, all in rural and regional areas, stranded without access to high speed broadband and without the Communications Fund to provide for any future service upgrades.
“Ironically it is rural and regional Australians that the Communications Fund was established to protect, who true to form Labor will abandon with its incomplete plan.
“Taxpayer funds should be used to deliver equity in underserved areas and ensure regional and rural Australians are not left behind in the ongoing telecommunications technology revolution,” Senator Coonan said.
Senator Coonan said that Labor made a mistake by picking just one technology – fibre-to-the-node to deliver broadband to Australia. Fibre-to-the-node is no good to you if you live beyond 1.5km of a node.
“The Coalition Government has a broadband plan that will deliver a mix of technologies. Under the Australia Connected programme, Australia will soon have multiple high speed broadband networks including, WiMAX, ADSL2+ and following the completion of the competitive assessment process, another high speed broadband network, likely to be fibre.
“The Coalition Government has ensured that not only will 100 per cent of the country be able to access broadband, but they will be able to access broadband at retail prices which are comparable to the competitive prices enjoyed by metropolitan Australians .
“The Australian Broadband Guarantee provides a subsidised broadband service for very remote locations that may not be covered by the new networks. Labor would abandon the ABG,” Senator Coonan said.
The $2 billion Communications Fund was established by the Government in 2005 and provides a guaranteed income stream to fund services and infrastructure for regional communities such as additional mobile towers, broadband provision and even backhaul fibre capabilities.
Interest earned from the Communications Fund is used to implement the Government’s responses to recommendations made by the triennial independent regional telecommunications review.
The latest review is currently underway with a committee chaired by Dr Bill Glasson and their recommendations will determine how the first $400 million of interest earned will be allocated in early 2008.
Media Contact: Katherine Meier 0417 441 141