Oakeshott’s National Broadband Network hypocrisy as he blames power price hikes on a monopoly

July 1, 2011

Independent MP Rob Oakeshott had taken his political hypocrisy to a new level after claiming  Australians were being slugged with power price hikes because energy producers enjoyed a monopoly, Shadow Minister for Regional Communications Luke Hartsuyker said today.

“If a monopoly is the reason Australians are being slugged with high electricity prices why is Mr Oakeshott supporting the creation of the National Broadband Network?   The Gillard Government NBN is effectively creating a new telecommunications monopoly and Australians are going to pay more for their broadband as a result.  Mr Oakeshott can’t walk both sides of the fence. If he truly believes that people are paying more for their electricity because of a monopoly, he can’t continue to support the structure of the NBN.

“The NBN is already suffering from the same contagion which infects monopolies. There have been cost blowouts, tender suspensions, rollout delays and the take-up rates have been very low.   We have seen the cost of installing the NBN in Tasmanian homes reach $7,500 per premise. In April, NBNCo suspended the mainland construction tender because bids were made at around $8 billion above NBNCo’s budget.  And last week the Gillard Government announced Telstra and Optus would be paid billions of dollars to shut down their broadband cable infrastructure and not compete with NBN Co.

“Yet despite billions of taxpayer dollars being spent, the NBN only has around 728 customers receiving the service for free whilst it spends $132 million on the cost of employing around 1000 NBNCo staff members, with 51 executives earning over $300,000 each year. The anti-competitive nature of the NBN will ensure consumers pay more for their broadband. Mr Oakeshott chairs the Parliamentary committee which is overseeing the rollout of the NBN. He has supported this project despite there being no cost benefit analysis and he has rejected all attempts to ensure there is more transparency .

“His comments today about power price hikes directly contradict his position on the National Broadband Network.”

< Prev		Next >