Government announced its intention to introduce new legislation that would keep the National Broadband Network (NBN) in public hands, reinforcing its election promise
The upcoming legislation, set to be introduced in Federal Parliament, seeks to prohibit any future sale of the NBN and puts pressure on the Coalition to clarify its stance on the potential privatisation of the network
The Government’s proposed legislation signals an important turning point for the NBN and raises broader questions about the role of privatisation in telecommunications. It prompts a crucial discussion about the NBN’s future and the implications of privatisation in a rapidly evolving sector.
“The Coalition rushed to declare the NBN ‘complete’ so they could put it on the block for sale – selling out Australian consumers and regional communities,” the three Labor members of parliament said.
The federal government is convinced its move to ban the privatisation of the NBN Co is a potent new weapon to discourage middle-of-the road voters from straying back to the Coalition at the next election.
The Albanese government has long maintained its commitment to retaining the NBN
Communications Minister Michelle Rowland made this clear over two years ago, just eight weeks after the May 2022 election, when she stated that the company would not be privatised during her tenure.
“We know that the Coalition wants to sell the NBN. Just like they sold Telstra,” Rowland declared during Question Time in answer to one of at least five questions from backbenchers to government ministers and the prime minister on the topic.
“The question here is for Peter Dutton; where do you stand, are you going to sell the NBN or do you want to keep it in public hands and back this bill,” she said at a separate press conference.
A potential battle over the NBN is likely to resonate with dedicated Labor supporters, but it also prompts important questions for other voters.
At a recent media conference, Rowland mentioned that her department estimated the NBN’s current market value to be “just under $20 billion.”
Methods for determining the figure is unclear, but it is significantly lower than the federal government’s original $29.5 billion equity stake, which was raised as debt and classified as an “off-budget” investment.
Selling the NBN would essentially lock in that sunk cost, leaving the government—and taxpayers—at a loss. Most of the debt would still appear on the books.
According to Shadow communications minister David Coleman he was yet to be briefed on the bill’s contents, but once this occurred, the opposition would provide a formal response.
