Report
Referral to the committee
1.1
On 21 June 2007, the Senate referred the provisions of the Telecommunications
Legislation Amendment (Protecting Services for Rural and Regional Australia
into the Future) Bill 2007 (hereafter 'the bill') to the Senate Environment,
Communications, Information Technology and the Arts (ECITA) Committee for
inquiry and report by 30 July 2007.
1.2
In accordance with the usual practice, the committee advertised the
inquiry in The Australian, on 27 June 2007 calling for submissions by 13 July 2007. The Committee also directly contacted a number of relevant organisations and
individuals to invite submissions. Submissions were received from two
organisations, as listed in Appendix 1.
Background to the bill
1.3
In the Second Reading Speech the Minister stated that the bill protects
in legislation the $2 billion principal of the Communications Fund so that
only the interest earned from the Fund – up to $400 million every three years –
can be drawn upon for future telecommunications improvements in regional and
remote Australia.[1]
1.4
The Communications Fund was established in September 2005 as a dedicated
and perpetual fund to provide an income stream to implement the Government's
response to recommendations made by the Regional Telecommunications Independent
Review Committee. The fund's capital is invested and the revenue generated is
spent ensuring people living in regional and remote areas can access affordable
and reliable telecommunications services in the future.[2]
1.5
The bill aims to ensure that rural and regional premises have access to
reliable and up-to-date services in the future:
Maintaining the $2 billion for investment into the future will
enable the Communications Fund to reliably generate income that will be
available for future investment in telecommunications improvements in regional,
rural and remote areas.[3]
1.6
As noted above, the Communications Fund is intended to provide an income
stream for future telecommunications improvements. Spending from the fund is
tied to independent, regular reviews of telecommunications services in rural,
regional and remote Australia conducted by the Regional Telecommunications
Independent Review Committee. The first review is required to commence before
the end of 2008, with subsequent reviews being completed every 3½ years. The
reviews must consider the adequacy of telecommunications services to people
living in regional, rural and remote Australia.
1.7
The review committee is required to report to the Government, which in
turn is required to respond in a timely way to any recommendations made by the
committee. Funding can then be accessed from the Fund earnings to implement
improvements to regional, rural and remote telecommunications.
This process provides certainty for people in regional, rural
and remote Australia that the improvements in their telecommunications services
will keep pace with the rest of the nation.[4]
Outline of the bill
1.8
The purpose of the Telecommunications Legislation Amendment (Protecting
Services for Rural and Regional Australia into the Future) Bill 2007 is to
amend the Telecommunications (Consumer Protection and Service Standards) Act
1999 (the Act) to ensure that the Commonwealth's $2 billion investment in
the Communications Fund is preserved to provide an income stream for future telecommunications
improvements in regional, rural and remote Australia.
1.9
The bill requires the Minister to take all reasonable steps to ensure
that the sum of the amounts standing to the credit of the Fund Account and the
value of investments of the Fund does not fall below $2 billion. This will
reflect the Government’s intention that the $2 billion principal of the Communications
Fund is maintained as a perpetual fund, with only earnings on investments
available for expenditure.[5]
Submissions
1.10
The committee received only two submissions on the bill. The Country Women's
Association of NSW commented generally on the capacity of the Communications Fund
to provide adequate telecommunications services to regional and remote areas.[6]
Australian Private Networks supported proposals to provide greater access to
high-quality telecommunications services in regional areas.[7]
The Committee's view
1.11
As indicated above, the committee received little evidence on the bill and
the two submissions it received addressed the bill in only general terms. No
specific issues with the bill were identified. The committee decided not to
hold a public hearing and has nothing further to report to the Senate regarding
the bill.
Senator Alan
Eggleston
Chair
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