Farmers attack Labor broadband plan

THE nation’s peak farming lobby has attacked Federal Labor’s plan to use money from the $2 billion Communications Fund to help pay for its national broadband plans.

National Farmers Federation(NFF) president David Crombie said the Communications Fund had been put in place to “future proof” the bush and should not be used for a one-off upgrade of broadband services.

The Communications Fund was established with proceeds from the T3 sale of Telstra shares. It was intended by Government to be a “locked-box” perpetual fund, with annual interest payments from the fund to be directed to rural upgrades.

“Labor’s policy fails to recognise that there is much more to telecommunications than just broadband, especially in the bush where phone and mobile services are critical to everyday life,” Mr Crombie said.

“Right now, future-proofing rural telecommunications is enshrined in legislation – funded by the $2 billion Communications Fund – guaranteeing future rural service upgrades,” he said

“From interest accrued on this dedicated perpetual Fund, rural telecommunications, including broadband and mobile services, are guaranteed funding for upgrades in the future.”

“The sole purpose of the Communications Fund is to finance solutions to telecommunications inadequacies across regional, rural and remote Australia on a regular basis into the future,” Mr Crombie said.

He said in “a couple of years” when the satellite, wireless and microwave technology became obsolete, there was no Labor plan to continue investment in the bush.

“Rural Australia will be left behind because Labor failed to plan for the future.”

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Labor attacks ‘hysterical’ Costello fund claims

GOVERNMENT claims that it private sector will complete building a high-speed national broadband network without taxpayer assistance were fanciful, Labor communications spokesman Stephen Conroy said.

Senator Conroy also attacked Treasurer Peter Costello’s claims that Labor’s plans spend $4.7 billion on a broadband network would leave government unable to meet its superannuation obligations as hysterical.

Communications Minister Helen Coonan’s claim that the private sector would go ahead with building a national broadband network within three years ignored the major telecommunications companies deep concerns about the regulatory system, Senator Conroy said.

“Unfortunately she’s choosing to ignore that Telstra have written to the stock exchange and said that they cannot and will not build the network without significant change in the regulatory settings,” he said.

“G9 the alternative proposal have also said that they will need regulatory change. And Helen Coonan is on the record repeatedly as saying she won’t be changing the regulations until 2009.”

“We’ve said we’ll make the regulatory changes, we’ve said we’ll contribute to the funding of this, because what we want to see is all Australians with access (speeds),” Senator Conroy said

Labor leader Kevin Rudd last week announced a plan to build a 12Mbps fibre to the node network to reach 98 per cent of the population.

He said Government would invest up to $4.7 billion in a joint-venture with the private sector to build the network, using the $2 billion Communications Fund and up to $2.7 billion from the Future Fund to bankroll the project.

The Future Fund was set up as a “locked-box” investment to be used to fund government $90 billion superannuation liability, with budget surpluses tipped into the scheme.

When it was set up government said it expected to cover the liability by 2020 – and Mr Costello argued last week the Labor “smash and grab” plan would leave the Future Fund short.

But Finance Minister Nick Minchin has distanced government from Mr Costello, saying the Future Fund was now expected to meet its targets years early.

“Nick Minchin in this morning’s papers admits that the Future Fund will be reaching its target early and that they will not be putting future surpluses into the Future Fund,” Senator Conroy said.

“What we are seeing at the moment is a bunch of broadband sceptics that just don’t get it,” he said. “John Howard seems to believe that the Great Wall of China was built by the emperor Nasi Goreng to keep the rabbits out.”

“Peter Costello’s attack last week was so desperate, so over the top, that even the fund managers who are looking after the fund have indicated that the fund will meet its surplus and meet its targets. And that’s why Nick Minchin has today belled the cat.”

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