Gov’s NBN sale block bill opens door to affordability, exec pay questions – Telco/ISP


A bid by the government to shut the door on a future sale of NBN Co could lead to a broader inquiry on the accessibility and affordability of services, and of executive pay.



The bid for a senate inquiry will be pushed by The Greens.

Communications spokesperson senator Sarah Hanson-Young said the proposed changes to the NBN Companies Act, revoking conditions that need to be met in order to sell NBN Co, needed scrutiny.

The bill was tabled by the government first thing on Wednesday after its existence was reported only a day earlier.

It comes several years after the former Coalition government took an initial step that is part of the legislated sale process.

Hanson-Young said while the bill itself needed examination, she suggested that The Greens may press for additional changes to the NBN Companies Act, specifically targeting executive pay.

“The parliament has an opportunity through this bill to examine accessibility of the NBN, the quality of the service and affordability,” Hanson-Young said in a statement.

“We need to ensure the digital divide is not growing and everyone can participate in our digital economy.”

“The Greens also want to see the exorbitant bonuses paid to NBN executives reigned in.”

Executive pay at NBN Co is a recurring political issue, just as it is an issue in the broader business sector as well.

Bonuses, or so-called at-risk payments, to NBN Co staff have been a focus in recent years and led to changes in how remuneration at the company is structured.

More broadly, NBN Co’s costs have faced scrutiny under the recent special access undertaking (SAU) process.

There have long been suspicions that not all costs NBN Co incurs are “efficient”; this impacts future pricing, as NBN Co is able to start clawing back some of its costs in future years.

Labor politicians cited affordability as a reason not to sell NBN Co.

This appears linked to the idea that a private owner would be less constrained than NBN Co in its attempts to generate a commercial return on its investment.

But even with special access undertaking (SAU) constraints, there have been consistent questions about the affordability of NBN services, with prices allowed to rise every year.

Having had time to digest the bill – something that hadn’t happened when he first addressed parliament early on Wednesday – the shadow communications minister David Coleman labelled the anti-sale bid a “stunt” and a “distraction” from more substantive policy issues.

He suggested the opposition is in no rush to pass the bill.

“The Coalition will consider this planned legislation through normal processes, rather than buying into another Labor stunt,” Coleman added.



Source link