Australian Industry Group backs NBN
- 26 October, 2010 09:20
- Comments 1
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 spokesperson, 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.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
AI group NBN report'
The points outlined as benefits are literally lifted off the powerpoints of the NBN vendors.
Why doesnt the AI group do its job properly as to the failure of the NBN here or anywhere else (japan, usa, europe, (even singapore if its checked properly) to achieve any productivity benefit. In all those economies, productivity declined.
These NBN's now as a topical global fad create debt, monopolise and restrict innovation, are shunned by communities and business. A number of NBN's are being abandoned as they have failed to achieve the very objectives outlined in the AI report as desired outcomes.
Here both big and small business have said its our NBN is wrong in design, did not get their participation or support and will not provide any incremental productivity benefit.
Our NBN if ever built is at least a decade away in even providing any form of common universal access for industry, business and communities.
Whats been done so far here is literally the laughing stock of the world in how not to do it and how not to achieve any productivity, social or industry benefit at all.
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