Additional Comments – Australian Democrats

Additional Comments – Australian Democrats

There has been immense pressure on the Government to ensure that the 'bush is up to scratch' before they proceed with the full sale of Telstra. This Bill is a precursor to the full sale of Telstra in an attempt by the Government to appease critics, but falls well short of addressing the colossal number of public, business and industry concerns.

It is worth reiterating here that the Democrats do not support the full privatisation of Telstra. The Democrats maintain that at a minimum Government should own key telecommunications infrastructure to ensure equitable access to affordable state of the art telecommunications if Australia is to remain internationally competitive and socially progressive. In particular telecommunications are an essential economic and social infrastructure in rural and remote areas, and are becoming more important in the context of the 'information economy' and the need to access services such as e-commerce, e-learning, e-health and banking.

The Democrats believe that the Government as major shareholder has been irresponsible in not investing adequately to meet both current needs and future telecommunications needs. We agree with SETEL's assertions that the focus on 'Standard Telephone Service' is no longer sufficient to meet the needs of Australians.[85] Broadband is the future of communication transmission for the delivery of voice, data and video based service. The Democrats believe that Government leadership in facilitating and supporting all Australians to access affordable, fast, reliable, broadband is crucial if Australia is to flourish in the 21st century. Yet the Government has failed to invest wisely.

While the Government holds up the HiBIS scheme as evidence that they are spending on upgrading telecommunications in regional and rural areas, we believe the scheme is flawed as it throws money at old technology, for example upgrading ADSL, instead of investing in new technology like laying out more fibre or developing wireless options.

The Democrats share the disappointment expressed by NFF in their submission that “after nearly two years the Bill is simply a ‘cut and paste’ of the earlier Telstra (Transition to Full Private Ownership) Bill 2003. The opportunity to modify and strengthen the Bill to better reflect the relevant recommendations has not been taken.”[86]

As outlined in the majority report there was overwhelming concern that the Bill does not adequately reflect the recommendations of the Estens reports, let alone the issues that the Estens report did not address.

The Democrats applaud the Government committee members for addressing a number of the concerns raised by submitters and witnesses. The Democrats support the majority of the recommendations made by the Government committee members and would support such amendments in the chamber. However like the ALP, the Democrats have concerns with recommendation 3, and support the ALP's further recommendation on this issue and that the review committee should have an ambit beyond the adequacy of rural and regional services.

As mentioned in our opening statement the Democrats do not believe that the Government have or are doing enough to ensure fair and equitable access to state of the art telecommunications in this county. The Government continues to refuse to adequately deal with issues around competition, regulation, and services. We have covered many of the issues in various senate committee reports including our comprehensive minority report to the Senate inquiry into the Telstra (Transition to Full Private Ownership) Bill 2003 tabled in October 2003; and the three senate inquiries which I chaired - A lost opportunity? Inquiry into the provisions of the Australian Communications and Media Authority Bill 2004 and related bills and matters, tabled in March 2005; Competition in Broadband Services, tabled in August 2004; and The Australian Telecommunications Network, tabled in August 2004.

We think there are many issues still outstanding with respect to the delivery of telecommunications in Australia and we will again reiterate these in more detail as part of our response to the Environment, Communications, Information Technology and the Arts References Committee on the Performance of the Australian Telecommunications Regulatory Regime, scheduled to be tabled on the 23 June 2005.

Senator John Cherry
Australian Democrats

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