Libs call for urgent probe into broadband bids

The Liberals has called on the Commonwealth Auditor-General to conduct an immediate investigation into the tender process for the national fibre-to-the-node network, saying the procedure has been dogged by concerns over value for money and transparency.

Shadow Communications spokesperson, Bruce Billson, has today appealed to the Commonwealth Auditor-General to launch "an urgent, full and thorough investigation" into the tender proposals process for the network, "in light of serious stakeholder concerns".

Opposition Communications spokesperson, Bruce Billson

Credit: Australian Parliament

According to the Victorian MP, he was "compelled" to involve the Auditor-General after reading the Australian National Audit Office's procurement guidelines, saying in a statement there were a number of worrying features in the network procurement process "that are clearly at odds with the principles of fairness, transparency, probity and value for money".

Billson pointed to problems with the government's 25 July deadline for all proposals, as well as the unavailability of information detailing Australia's existing network infrastructure to bidders other than Telstra.

"The government has commenced this process fully aware that proponents require this information in order to participate in a contestable process with properly designed, interconnected and costed proposals," said Billson in his letter to the Auditor-General.

Today's report comes after Optus CEO Paul O'Sullivan told the ABC on Monday that the telco would withdraw from the tender process if the deadline was not extended, preferably at least five months after the network information is made available to all potential bidders.

The Optus chief also called on the government to commit to a policy of operational separation for Telstra, saying: "Before we put our reputation on the line, before we spend a lot of money preparing a bid we want the assurance from government that it is committed to structural separation."

Speaking at the Sydney Institute yesterday, Federal Communications Minister Senator Stephen Conroy said the government was committed to a "genuinely" competitive process, despite refusing to extend the deadline.

"We are working to ensure that proponents will have access to relevant network information to assist in the preparation of their bids," he said, before reiterating his openness to the possibility of structurally separating Telstra.

"The government has always recognised that it may need to consider regulatory or legislative changes to facilitate the deployment of the national broadband network," he said.

Oppostion spokesperson Billson hit back: "The Request-For-Proposal is more accurately a Request-For-Policy".

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Talkback 5 comments

  1. Who is this impostor. Sydney Lawrence -- 07/05/08

    Mr. Billson you should hang your head in shame and offer profuse apologies to the Australian people.

    You show yourself to be an extremely dishonourable person with your criticism of Senator Conroy. Today we have seen Optus announce that they will supply a system to the Australian people, without Government help, and for under 400 million dollars, when a short time ago your Government offered to gift Opel over 900 million dollars for build of virtually the same system.

    Please Mr. Billson do not show your inability to speak with honesty. I understand your desire to project yourself as a person with some intelligence but please do a little self analysis before you speak again.

  2. The result's obvious Anonymous -- 08/05/08

    In broadband, Telstra's going to regain its monopoly - certainly not in the interests of customers (or shareholders) but rather the Union bosses which spent millions on bringing Rudd and Conroy to power. Like the Teachers' Unions, it's now payback time.

    1. Omitted Anonymous -- 08/05/08

      Someone above forgot to mention the Telstra bosses' efforts in bringing Rudd to power and their potential rakeoff .

      Where Sydney Lawrence systands on the gravuy train - nobody knows.

    2. ALP - Proudly sponsored by Telstra Anonymous -- 08/05/08

      Payback time alright . . . but when are the paybacks going to stop? Monopolized ADSL2, monopolized access to the bush, monopolized FTTH.
      I wonder what Paul Keating thinks of the Rollback to all his work in trying to open up communications in Australia. What a shame that we are heading back to the old PMG/Telecom days where there was no competition and it took 2 months to get a phone connected.
      And Sydney, I don't know where you are coming from either, but your comments today (and in the past) seem to be attacking persons, rather than helping the public. Do you have anything to disclose, like are you associated with the ALP or with Telstra, because your views seem to be the minority?
      I am a part owner of a small ISP that serves only Rural and Remote communities, so yes I have a vested interest in seeing services improve in the bush, and the consequences of the Opel and Telstra FTTH quotes.
      However, I think extending the deadline longer would give everyone a chance to investigate more in depth what services would best suit the end user, and give competing companies some time to look over what assets the Australian public (thru the Future Fund) still owns a fair whack of, ie Telstra.

    3. Old and tired comments with no substance Stephen Smith -- 09/05/08

      You are a part owner of a small ISP? Let me guess, when you bought your interest it was actually a large ISP.

      Paul Keating had a vision and no stamina to see it through, unfortunately those who replaced him and set the policies in recent years screwed it up by trying to sell the farm while expecting to keep control of what crops get grown.

      There was no political influence from Telstra, in fact they stayed as far away from the election as possible, even to the point of indicating willingness to work with either party.

      If we assume for a moment Telstra did influence the election, If the supporters were in the minority then they must have voted multiple times to have won. The labor government is re-balancing the playing field to be more even and that has upset those who want to see Telstra become a benevolent society.

      If you own part of an ISP I am surprised you have not heard of Sydney by now. I am not here to write a biography but by assuming he is a shareholder then he is like every single Australian as the future fund is held by us the taxpayers. If he is associated with the ALP then based on the last election he is part of the majority.

      You ask for more time, how long is long enough? If a company can not develop a solution for something that we all know has been in the works for the past 12 months. All serious parties would only need the next couple of months to fine tune the details around the variables in the tender that were not known until it's release. People work with companies developing and understanding the business and technical needs for months and often are only be given 2 weeks from the release of a tender to respond. A major part of the process is the ability to show the flexibility and responsiveness of the company.

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