Labor Senators' Additional Comments

1.1        The Telecommunications Legislation Amendment (Deregulation) Bill 2014 and the Telecommunications (Industry Levy) Amendment Bill 2014 were referred back to the Senate Environment and Communications Legislation Committee for inquiry and report after the announcement on 14 December 2014 that the Government had reached agreement with Telstra on the revised Commonwealth Agreements, which include the TUSMA Agreement.

1.2        Labor Senators note that, other than a collection of thin media releases, no details were forthcoming from the Government on the details of the TUSMA Agreement. Until these bills were referred, the only detail available to the public and the Opposition on the amendments to the TUSMA Agreement (and indeed the remaining Commonwealth Agreements and the Definitive Agreements) was contained in material released by Telstra under its market disclosure obligations.

1.3        The Government has emphasised that the December 2014 revisions to the TUSMA Agreement 'did not include any "weakening of the obligations imposed on Telstra to continue to deliver the STS USO, Payphones USO or emergency call services".' Labor Senators note that under the revised TUSMA Agreement negotiated by this Government, the period of time during which Telstra may be required to take remedial action in the event of a breach of its contract with the Commonwealth for the delivery of the Universal Service Obligation has been extended from 14 days to six months. The implications of this provision were explored at the 10 March public hearing:

Senator Conroy: A legal contract requirement and the broad ACMA powers are very different. Enforcing a contract, and ACMA making a decision about the broader regulatory power, are two very different concepts. You have a legal contract that is being changed to say that instead of having to act within two weeks, you can now wait up to six months before acting.

Ms Flannery: You retain the right to act for six months.

Senator CONROY: But you are not required to make your decision inside two weeks, which you are currently required to. Inside two weeks it is yes—no; but now you can wait six months to decide yes—no.

Ms Flannery: Correct.[1]

1.4        Labor Senators note that the purpose of the Telecommunications Universal Service Management Agency (TUSMA) is to:

support the delivery of universal service and other public-interest telecommunications services for all Australians through the implementation and effective administration of contracts and grants. Our aim is to promote high quality and efficient contract and grant management to maximise the benefit for consumers and manage risks appropriately, within a transparent and accountable legislative framework.[2]

1.5        Labor senators consider that, contrary to the Government’s assertion, this new provision is, in fact, a 'weakening of the obligations imposed on Telstra to continue to deliver the STS USO, Payphones USO or emergency call services' and has not been included in the TUSMA Agreement for the purposes of 'maximis[ing] the benefit for consumers'.

1.6        Changes to the TUSMA Agreement in December 2014 included the proposed integration of TUSMA's functions into the department by requiring the department to administer the TUSMA Agreement on behalf of the Commonwealth should TUSMA be abolished—as set out in the telecommunications deregulation bills. Other changes to the TUSMA Agreement are contractual in nature and not reflected in the telecommunications deregulation bills. Labor Senators reiterate that very few details were forthcoming from the Government on the details of the TUSMA Agreement, despite the fact that this agreement was germane to bills being considered by Parliament.

Senator Anne Urquhart                                         Senator the Hon Stephen Conroy
Deputy Chair                                                          Senator for Victoria

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