THE BILL REPEALS PART 9C OF THE TELECOMMUNICATIONS (CONSUMER PROTECTION AND SERVICE STANDARDS) ACT 1999, WHICH ESTABLISHES THE COMMUNICATIONS FUND, AND REPEALS THE HIGHER EDUCATION ENDOWMENT FUND ACT 2007. LABOR’S ATTACK ON THE REGIONS’ TELECOMMUNICATIONS FUTURE HAS BEEN FURTHER CONFIRMED THIS WEEK WITH THIS LEGISLATION SCRAPPING THE $2 BILLION COMMUNICATIONS FUND, SET UP BY THE COALITION TO FUTURE-PROOF SERVICES IN COUNTRY AUSTRALIA. THE GOVERNMENT’S NATION BUILDING FUNDS BILL 2008 WAS SUCCESSFULLY AMENDED EARLIER IN THE SENATE TO PREVENT THE TRANSFER OF THE COMMUNICATIONS FUND TO THE BUILDING AUSTRALIA FUND. THIS COMMUNICATIONS FUND WAS PIVOTAL TO THE NATIONALS’ SUPPORT FOR THE FINAL SALE OF TELSTRA. WHEN WE PASSED THE LEGISLATION TO GIVE THIS COMMITMENT LIFE, THEN DEPUTY PRIME MINISTER MARK VAILE SAID:- WHAT WE ARE DELIVERING TODAY EMANATED FROM A RESOLUTION OF THE QUEENSLAND NATIONAL PARTY’S CONFERENCE IN 2005 WHEN THEY DECIDE TO SUPPORT THE SALE OF THE FINAL TRANCH OF TELSTRA. AND THERE WERE A RANGE OF RECOMMENDATIONS THERE AND ONE OF THEM WAS TO CREATE THE PERPETUAL COMMUNICATIONS FUND WITH $2-BILLION IN IT – DONE. TO UNDERSTAND HOW CRUCIAL THIS FUND IS TO THE NATIONALS AND THE BUSH, I WANT TO TRACE THE HISTORY OF THE TELSTRA SALES AND CANVAS THE ISSUES THAT WERE FRONT AND CENTRE FOR US. WHEN I WAS FIRST A SENATOR IN THE 80’S, IT WAS NOT EASY TO CONTACT A GRAZIER IN WESTERN QUEENSLAND UNLESS YOU CHARTERED A FLIGHT OUT THERE. PARTY LINES MEANT THAT SEVERAL FAMILIES SHARED A SINGLE AND OFTEN UNRELIABLE TELEPHONE LINE. STD CALL RATES COMMONLY APPLIED BETWEEN THE HOMESTEAD AND A COTTAGE ON THE SAME PROPERTY. SCHOOL OF THE AIR SERVICES WERE ALSO INADEQUATE. NEW PHONE CONNECTIONS TOOK MONTHS. THE ONSET OF THE WET COULD MEAN LONG TERM OUTAGES OF COMMUNICATION LINES. MEANWHILE THE REST OF THE WORLD WAS IMPROVING THEIR PRODUCTIVITY AND CITIES WERE MAKING LEAPS AND BOUNDS IN COMMUNICATION-BASED SERVICE DELIVERY. AT THAT TIME, THE LABOR GOVERNMENT OWNED TELECOM. IT WAS OBVIOUS THAT RURAL SERVICES WOULD HAVE TO BE GREATLY IMPROVED IF PRIMARY INDUSTRY WAS TO BE COMPETITIVE AND IF RURAL FAMILIES WERE TO BE TREATED THE SAME AS OTHER AUSTRALIANS. THE INFRASTRUCTURE UPGRADE REQUIRED WOULD BE SUBSTANTIAL. LABOR HAD THREE CHOICES – EITHER FUND THE UPGRADE FROM THE BUDGET OR THROUGH A SALE OF ITS SHARES IN TELECOM, OR - JUST LEAVE RURAL AUSTRALIA AS IT WAS. LABOR CHOSE THE THIRD OPTION – THEY DID NOTHING. COMPLAINTS ABOUT TELECOM GREW PROGRESSIVELY WORSE. THREE YEARS AGO I TRIED TO RING THE SAME GRAZIER OUT WEST WHO I COULD NOT REACH YEARS AGO BECAUSE OF THE PARTY LINE SYSTEM. HE TOOK THE CALL FROM HIS MOBILE PHONE OUT AT A WINDMILL ON HIS PROPERTY. TEN YEARS HAD MADE A BIG DIFFERENCE IN COMMUNICATIONS ON THE LAND, THANKS TO A COALITION GOVERNMENT PREPARED TO BACK RURAL AUSTRALIANS WITH COLD HARD CASH – CASH WHICH HAS BOUGHT HUNDREDS OF MOBILE PHONE TOWERS, ABOLISHED THE PASTORAL CALL RATES SO THAT EVERYONE IS NOW ON UNTIMED LOCAL CALLS, PUT INTERNET INTO REMOTE HOMESTEADS FOR THE COST OF A LOCAL CALL AND WAS THEN ROLLING OUT HIGH BANDWIDTH SERVICES. ‘BANDWIDTH’ – WHO HAD EVEN HEARD OF THAT 13 YEARS AGO? WHERE DID THE CASH COME FROM FOR THIS REVOLUTION? REMEMBER THE HARSH DECISIONS THAT HAD TO BE MADE BY THE COALITION’S EXPENDITURE REVIEW COMMITTEE IN THE FIRST FEW YEARS OF GOVERNMENT – TO COPE WITH THE BEAZLEY BLACK HOLE. THERE WAS DEFINITELY NO ROOM IN THE BUDGET FOR MAJOR CAPITAL INVESTMENT IN BUSH TELEPHONES. AND THERE WERE SO MANY COMPETING DEMANDS FROM CITY MPS WHO GREATLY OUTWEIGH RURAL MPS SO RURAL TELECOMMUNICATIONS WAS IN DIRE STRAITS. THEN CAME THE SALE OF THE FIRST PART OF TELSTRA IN 1997. THE T1 SALE SAW THE ESTABLISHMENT OF NETWORKING THE NATION, A GENERAL FUND FOR REGIONAL TELECOMMUNICATIONS INFRASTRUCTURE. THAT SERVED TO HIGHLIGHT HOW THIRSTY THE BUSH WAS FOR TELECOMMUNICATIONS INFRASTRUCTURE. THE BUDGET BOTTOM LINE MEANT THAT WE COULD NOT APPLY THERE FOR HELP. SO THE NATIONALS EYED OFF THE T2 SALE AS A MOMENTOUS OPPORTUNITY TO FILL THE GAPS IDENTIFIED BY THE NFF AND THE NETWORKING THE NATION FUND EXPERIENCE. T2 ONLY WENT AHEAD ONCE THE NATIONALS HAD SECURED A LANDMARK BILLION DOLLAR SOCIAL BONUS PACKAGE FOR REGIONAL AUSTRALIA. THIS SUITE OF PROGRAMS EFFECTIVELY BROUGHT RURAL AUSTRALIA ‘ON LINE’, ABOLISHED THE INEQUITABLE TIMED LOCAL CALLS AND SAW THE INSTALLATION OF HUNDREDS OF MOBILE PHONE TOWERS ACROSS RURAL AND REMOTE AUSTRALIA. LOCAL GOVERNMENT, EDUCATION, HEALTH AND EVEN LEGAL SERVICES WERE ENTHUSIASTIC PARTICIPANTS IN THE GREAT HOOK-UP THAT OCCURRED AS A RESULT OF THE SOCIAL BONUS PACKAGE FROM T2. THIS PARTIAL SALE OF TELSTRA (OWNED BY ALL AUSTRALIANS), FUNDED THE INFRASTRUCTURE NEEDED BY THE BUSH. THERE WAS NO OTHER WAY TO DO IT. THE NEW MILLENNIUM FOUND RURAL AUSTRALIANS VERY COMMUNICATIVE. SO MANY OPTIONS AND NEW TECHNOLOGIES LEFT EVERYONE WITH A TASTE FOR MORE – MORE MOBILE COVERAGE, FASTER SPEEDS, LESS WIRES, LESS FAULTS, LOWER CONNECTION TIMES... SERVICE, SERVICE, SERVICE. THE COALITION GOVERNMENT RESPONDED WITH TWO INQUIRIES, BESLEY IN 2001 WHICH LED PRIMARILY TO $163M OF MOBILE PHONES TO SMALLER AND SMALLER TOWNS AND THE ESTENS INQUIRY IN 2003,  WHICH IDENTIFIED BROADBAND ISSUES AND EVEN MORE MOBILE PHONE TOWERS TO BE FUNDED BY GOVERNMENT AT OVER $180M. WHILE ALL THIS MONEY WAS BEING SPENT, THE COALITION GOVERNMENT ALSO MOVED TO TIGHTEN UP THE REGULATIONS GOVERNING TELEPHONE COMPANIES TO IMPROVE COMPETITION AND ENFORCE A CUSTOMER SERVICE GUARANTEE. ALL OF THESE MEASURES WERE COLLECTIVELY RESPONSIBLE FOR THE GREAT LEAP FORWARD IN BUSH TELECOMMUNICATIONS. THIS WOULD NOT HAVE BEEN POSSIBLE IF THE SALE OF TELSTRA HAD NOT PROVIDED THE COLD HARD CASH TO REINVEST IN RURAL INFRASTRUCTURE. THEN WE WERE FACED WITH THE SALE OF THE BALANCE OF TELSTRA SHARES. ON THE TABLE WAS $1.1 BILLION DOLLARS OF RURAL RE-INVESTMENT IN BROADBAND AND MOBILE CONNECTIONS. THIS COULD NOT BE FUNDED FROM THE BUDGET. THERE WAS ALSO A $2BN PERPETUAL COMMUNICATIONS FUND TO DELIVER RURAL COMMUNICATIONS INTO THE FUTURE WHERE IT IS NOT OTHERWISE COMMERCIALLY VIABLE THIS WAS NO TIME TO HANG ON TO A TELEPHONE COMPANY OUT OF NOSTALGIA FOR THOSE TIMES YOU COULD NEVER GET A LINE. IF RURAL AUSTRALIA WANTED THE TECHNOLOGY, THE COMPETITIVENESS, THE CONNECTEDNESS, THE EDUCATION, THE HEALTH AND OTHER SERVICES DELIVERABLE BY MODERN COMMUNICATIONS, THERE WAS NO GOING BACK. TELSTRA HAD TO BE SOLD TO FINANCE THE MAJOR AND ONGOING RE-INVESTMENT REQUIRED. SUCH WAS THE THINKING OF THE NATIONALS AND OUR PEOPLE IN RURAL, REMOTE AND REGIONAL AUSTRALIA. THEN ON AUGUST 5, 2005, STATE NATIONALS LEADERS FROM NEW SOUTH WALES, QUEENSLAND, VICTORIA, SOUTH AUSTRALIA AND WESTERN AUSTRALIA WELCOMED A UNANIMOUS RESOLUTION FROM A SPECIAL JOINT-CONFERENCE OF STATE NATIONAL MPS ON TELSTRA. THE RESOLUTION MIRRORED THAT PASSED BY THE QUEENSLAND NATIONALS’ CONFERENCE THE PREVIOUS WEEK AND SUBSEQUENTLY ENDORSED BY FEDERAL NATIONAL MPS. IT STATED THAT  “THIS MEETING OF STATE NATIONALS MPS FROM ACROSS AUSTRALIA RESOLVES TO OPPOSE THE FURTHER SALE OF TELSTRA UNLESS ALL AUSTRALIANS – IN METROPOLITAN, REGIONAL, RURAL AND REMOTE AREAS – ARE PROTECTED FROM TELECOMMUNICATIONS MARKET FAILURE WHICH MAY PREVENT THE PROVISION OF PARITY OF TECHNOLOGY, SERVICE AND PRICE INTO THE FUTURE BETWEEN METROPOLITAN AND REGIONAL AREAS. TOWARDS THIS GOAL, THIS MEETING OF NATIONALS MEMBERS OF PARLIAMENT CALL FOR THE IMPLEMENTATION OF THE FOLLOWING: “1 THE ESTABLISHMENT OF A PERMANENT AND SIGNIFICANT TRUST FUND WITH THE EARNINGS USED TO PROVIDE FUTURE TECHNOLOGY AND INFRASTRUCTURE UPGRADES AT PARITY PRICE AND SERVICE WITH METROPOLITAN SERVICES IN CASES OF MARKET FAILURE (UTILISING A COMPETITIVE TENDER PROCESS THAT CONSIDERS PROVIDERS WITH A PERMANENT PRESENCE IN REGIONAL AUSTRALIA);” TODAY THE SENATE IS FACED WITH THE DECISION OF WHETHER TO RECANT ON THIS FIRST PILLAR OF THE COVENANT WE MADE WITH THE BUSH. ON THE DAY WE INTRODUCED LEGISLATION TO LIVE UP TO OUR COMMITMENT - THAT WE’D SHAKEN HANDS ON WITH THE PEOPLE OF THE BUSH - THE THEN MINISTER FOR COMMUNICATIONS SENATOR HELEN COONAN SAID THE TELECOMMUNICATIONS LEGISLATION AMENDMENT (PROTECTING SERVICES FOR RURAL AND REGIONAL AUSTRALIA INTO THE FUTURE) BILL WILL ENSURE THAT REGIONAL AUSTRALIA’S PERPETUAL $2 BILLION COMMUNICATIONS FUND CANNOT BE PILLAGED. THE MINISTER SAID “THIS BILL PROTECTS IN LEGISLATION THE $2 BILLION PRINCIPAL OF THE COMMUNICATIONS FUND SO THAT ONLY THE INTEREST EARNED FROM THE FUND, UP TO $400 MILLION EVERY THREE YEARS, CAN BE SPENT. IT WILL ALSO PROVIDE CERTAINTY FOR PEOPLE IN REGIONAL AND REMOTE AUSTRALIA THAT THE IMPROVEMENTS IN THEIR TELECOMMUNICATIONS SERVICES WILL KEEP PACE WITH THE REST OF THE NATION. “LABOR HAS COMMITTED TO DRAIN THE ENTIRE $2 BILLION FROM THE COMMUNICATIONS FUND, ROB THE BUSH OF ITS ONGOING FUNDING, AND SQUANDER IT ON A COMMERCIALLY VIABLE NETWORK ESTIMATED TO REACH AROUND 75 PER CENT OF THE POPULATION. “THE PASSAGE OF THIS BILL THROUGH PARLIAMENT WILL PROTECT RURAL AND REGIONAL AUSTRALIA FROM THE GROSS ECONOMIC IRRESPONSIBILITY OF THE LABOR PARTY. “THE COMMUNICATIONS FUND WAS ESTABLISHED BY THE GOVERNMENT IN 2005 AND PROVIDES A GUARANTEED INCOME STREAM TO FUND HARD INFRASTRUCTURE FOR REGIONAL COMMUNITIES SUCH AS ADDITIONAL MOBILE TOWERS, BROADBAND PROVISION AND EVEN BACKHAUL FIBRE CAPABILITIES. “INTEREST EARNED FROM THE COMMUNICATIONS FUND IS USED TO IMPLEMENT THE GOVERNMENT’S RESPONSES TO RECOMMENDATIONS MADE BY THE TRIENNIAL INDEPENDENT REGIONAL TELECOMMUNICATIONS REVIEW.” I SPOKE ON THAT BILL. I SAID “THIS BILL SEEKS TO LOCK UP THE $2 BILLION THAT THE NATIONAL PARTY WON IN EXCHANGE FOR THE SALE OF TELSTRA. IN THE PARTY ROOM, OR FORUMS, WE SAID THAT IF TELSTRA IS SOLD THEN WE WANT TO ENSURE THAT RURAL AND REGIONAL AUSTRALIA NEVER GETS LEFT BEHIND, AS IT WAS AT THE END OF THE LABOR PARTY ADMINISTRATION.” I TOLD THE SENATE:- “THIS BILL SEEKS TO LOCK IN THAT $2 BILLION UNDER LEGISLATION AND IT CAN NEVER BE REMOVED UNLESS LABOR HAS A MAJORITY IN THE SENATE.” I LOOK AROUND AND DO I SEE A LABOR MAJORITY IN THE SENATE? WE WILL SEE WHEN IT COMES TO THE VOTE. WHAT I DO KNOW IS THAT THE NATIONALS DO NOT WALK AWAY FROM A HANDSHAKE WITH THE PEOPLE OF THE BUSH. WE PROMISED THEM THIS FUTURE, THIS FUND FOR THEIR TELECOMMUNICATIONS FUTURE. THEY SAID  - “OK THEN, ON THE BASIS OF OUR TRUST IN YOU TO KEEP TO THAT, WE SAY GO AHEAD AND FINISH THE SALE OF TELSTRA”. I WILL WALK ACROSS THIS FLOOR BEFORE I WALK AWAY FROM THAT TRUST. I NOTE THAT THE OPPOSITION IN THE OTHER PLACE HAS JUST VOTED TO INSIST ON THE SENATE’S AMENDMENTS. WHEN I VOTE THAT WAY TOO, WHO WILL REALLY BE CROSSING THE FLOOR?