Australian Industry Group backs NBN

A report by a leading industry group has backed the National Broadband Network (NBN)
but has also raised concerns about the lack of a cost-benefit analysis of the $43
billion project.
The Australian Industry Group (Ai Group) report has described the NBN as the most
important technology for creating future innovation, saying it will provide
unprecedented opportunities for Australian business.
The release of the report comes as opposition communications spokesman Malcolm
Turnbull continues to seek support for a private member's bill calling for a
cost-benefit analysis of the NBN.
Crucially, while there are concerns about transparency regarding estimated costs for
the project, the Ai report states that such issues were outweighed by its positive
impact.
"Although transparency regarding estimated costs of the network has been noted as a
concern, and external benefits may be difficult to quantify in a traditional
analysis, an investment of this scale has substantial possibility to generate
long-term positive opportunities across many sectors of the economy," it said.
The report, called New Thinking, New Directions, was prepared by the Ai Group's
national innovation review steering group and also backs the government's
open-access model for the NBN.
"Ubiquitous open-access connectivity will provide real benefits in the short term
and medium term, as supply chain interactions are optimised and new
business-to-business and consumer markets become accessible," the report said.
"The rollout of a very high speed broadband network provides an unprecedented
opportunity for Australian businesses to transform their innovation practice, in
terms of realising cost-savings, productivity, extending market reach and
introducing new types of products and services."
Communications Minister Stephen Conroy seized on the report, saying it supported the
premise that the NBN would drive Australia's economic growth and productivity.
"This is the latest in a range of reports which finds that ubiquitous, open-access
broadband connectivity will deliver a step-change in the way business is carried out
across the country," Senator Conroy said.
The backing from one of Australia's leading industry groups comes as the opposition
continues to criticise the lack of a published business model and cost-benefit
analysis.
It remains unclear whether Mr Turnbull will get the necessary support for his
private member's bill, which if successful, would require the Productivity
Commission to examine the NBN and report to parliament by the end of May 2011.
Mr Turnbull denied his bill was designed to delay the NBN.
"It is simply an attempt to establish the facts to provide parliament with an
appropriate level of financial understanding of this - the largest expenditure of
taxpayers' funds on an infrastructure asset in our nation's history," he said.
But at least two independents, Tony Windsor and Bob Katter, have said they will not
support the move, while the Greens will make a decision when the legislation comes
before the parliament next month.
"If they'd done a cost-benefit analysis on the Snowy Hydro Scheme ... it would
probably show up that it wouldn't be a viable operation," Mr Windsor told ABC Radio.
Greens communications spokesman Scott Ludlam said his party remained concerned about
the lack of a published business case, but was also sceptical about the coalition's
intentions.
"Scepticism is our feeling at the moment. I'm an Abbott sceptic when it comes to
telecommunications."
Senator Ludlam said he hoped issues around publishing a business model would be
resolved before the bill is considered by the parliament.
"If they're not in the public domain already by the time we get to debate this bill,
then there's a really serious problem," he said.