NBN to blow out by $400m: Turnbull
- 10 May, 2012 10:18
- Comments 5
Shadow communications minister, Malcolm Turnbull, has claimed that the 2012-13 budget, announced Tuesday night, has revealed that the price tag of the National Broadband Network (NBN) has jumped by as much as $400 million.
Turnbull said this was evident in the government's broadband spending which is forecast to hit $484 million in the 2012-13 Department of Broadband, Communications and the Digital Economy (DBCDE) portfolio budget compared to $57 million in the 2011-12 DBCDE portfolio budget.
“The sum Australian taxpayers are being forced to invest in the National Broadband Network between July 2011 and June 2014 has apparently blown out by $400 million, even though the NBN is at least a year behind schedule in its rollout,” he said in a statement.
“Yet the network only has 5000 or so customers currently using its fibre network, compared to the 137,000 projected by June 2012 in NBN Co’s corporate plan.”
He attributed the increase to “inducements provided to Telstra for its deal with NBN Co have been brought forward as lump sums totalling $421 million to be paid out before June 30”.
As a result, Turnbull called on communications minister, Stephen Conroy, to release a revised version of NBN Co’s December 2010 corporate plan.
In addition, Turnbull criticised the government’s allocation of $20 million to the NBN to “improve public understanding, address misconceptions and provide updated information about the National Broadband Network”. “Given NBN Co has already wasted so much money by hiring a vast public relations team and granting numerous contracts to PR and marketing consultants and other privileged insiders… Australians have every right to ask whether these funds will simply result in more pro-NBN propaganda,” Turnbull said.
The latest federal budget was released this week, which was blasted for not doing enough for IT.
“I would rate it worse than last year’s budget,” IIA chairman, Bruce Linn, told Computerworld Australia.
“This budget was clearly driven by the self-imposed need to create a surplus in 2012/13, which no one except the government believed was appropriate at this time.”
Linn also said that there was “not much” in the budget to help business and investment, saying that the budget was proof the government was not attuned to the needs of Australian businesses.
“[The budget] confirms that the government does not understand the pressures business is under and the general effect that is having on the non-mining economy,” he said.
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Comments
dave
1
So what is 400 million as a percentage of 41 billion? Is this a serious article?
Pat. Williams
2
Why would anyone be surprised? This is just the tip of the iceberg where fiddling the books is concerned.
Comment number 1 must have more money than sense. If there are several inaccuracies like this one, they will make an enormous difference. Rest assured, more will be revealed. Doubtless the spin is already being invented.
Abel Adamski
3
Pat. The deceptions, untruths, fearmongering and straight out lies by sectors of the media and the coalition is breathtaking and scary. Those liars and manipulators will rule our country through their ignorant coalition puppets. The subject is the NBN. and facts are facts. What would the automotive industry and transportation be like if Governments hadn't built decent NATIONAL road networks and left roads to the private sector?. The crud broadband we have now and the second rate very expensive to the taxpayer and end user dogs breakfast the coalition is offering will NOT encourage or facilitate future innovation and technologies, as if the coalition designed it Soley for watching porn, not good enough for anything else, is that where their heads are at ?
John
4
I just hope the thing can be built without costing even more or stoped half way through becaus if it is then a breath taking amount of money will have been wasted.
A better way forward may be to link all the exchages with it and add some forward nodes so every one gets a boust in speed then slowy do areas with the most demand first as it can be paid for if most people could get a fuul 20MpS quickly they would be willing to wait for 100Mps to 1000MpS in a few years .
Abel Adamski
5
John.
You demonstrate the problem we face. The NBN is a technical issue, few can understand the technological factors which is why we depend on the integrity of the media and our leaders to give information based on fact. Except for the Copper customer cabling, our National communications networks are DIGITAL, largely over Optical Fibre already, even the exchanges are digital with interconnects all by Fibre. What you propose will not provide the benefits to the economy and nation that the NBN will and be just an expensive to the taxpayer toy for the public to use facebook, youtube movies and porn a year or two earlier.
You seem to think that the taxpayer is paying for the NBN, they are NOT, it is being funded by Bonds which if implemented as planned will be very easily paid off. Every enterprise borrows to build and acquire assets (with the exception of APPLE ) on the basis of a Return on Investment, generally over a short timeframe