Labor Waste

Media Release – Malcolm Turnbull

Corporate advisor Greenhill Caliburn has admitted “mobile centric” broadband networks such as next-generation wireless could seriously undermine the economic viability of the Gillard Government’s $50 billion National Broadband Network.

While the Greenhill Caliburn report provides grudging support for the assumptions underlying the NBN Co business plan, the Government’s advisor concedes it has “not conducted an in-depth analysis of NBN Co’s future funding requirements” and its report “does not purport to evaluate the Government’s NBN policy objectives, nor does it undertake a returns or cost-benefit analysis of the implementation of the NBN”.

Given Greenhill Caliburn did not provide answers in any of these critical areas Senator Conroy must immediately reveal how much this latest report has cost taxpayers. Does it represent millions of dollars wasted, like the $25 million McKinsey KPMG Implementation Study whose recommendations were almost entirely ignored by the Government and NBN Co?

Senator Conroy must also explain why, yet again, he has chosen to keep secret the full report – just as he chose to keep secret 240 pages of the 400 page NBN Co corporate plan. Ironically, one of Greenhill Caliburn’s most important recommendations is that the NBN Co be more closely monitored by the Commonwealth.

As all Australian taxpayers are direct financial contributors to this project, they too should be fully informed about the commercial operations of the NBN Co and risks to their investment.

On wireless, Greenhill Caliburn says: “Trends towards ‘mobile centric’ broadband networks could also have some significant implications for NBN Co’s fibre offerings to the extent that some consumers may be willing to sacrifice higher speed fibre transmissions for the convenience of mobile platforms”.

This report, like the other multi-million dollar consultants’ reports the Government has commissioned, fails to address the single most important issue:- what is the most cost-effective way to ensure that all Australians have access to high speed and affordable broadband?

It beggars belief that any responsible government would embark on such massive expenditure without answering that question. And as a result we are presented with absurd wastefulness such as overbuilding the HFC network which already passes 30% of Australian homes and prohibiting it from competing with the NBN notwithstanding it can deliver 100 mbps right now.

Senator Conroy, like a latter day Basil Fawlty, hires one consultant after another instructing them “don’t mention the cost-benefit analysis”, and everyone, just like the dinner guests at Fawlty Towers, does just that highlighting very plainly that they were told NOT to perform such an analysis and in so doing confirming how negligent it is not to ask and answer the fundamental question about the NBN.

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