$1.4 billion NBN blowout draws flak
The National Broadband Network Co (NBN Co) has released its Corporate Plan for 2012-15, outlining an expected $1.4 billion increase to its capital expenditure over that period. The plan also outlines a $3.2 billion overall increase over the life of the rollout of the network.
Despite the announcement drawing criticism from the Federal Opposition, NBN Co's Chief Financial Officer, Robin Payne, said that any increases in costs are more than offset by projected revenue growth beyond the fibre construction period.
"We continue to build the NBN as cost effectively as possible,” Mr Payne said.
"Where prudent, we have built in additional costs to the plan but these are largely offset by savings we have made elsewhere. In areas where we are spending more it is generally because there are long-term benefits to NBN Co."
Shadow Communications Minister Malcolm Turnbull wasted little time in savaging the business plan, accusing the Federal Government of continued waste, questioning the value of the entire scheme to the country.
"And the Productivity Commission should be asked to conduct a thorough cost benefit analysis to assess the most efficient means of upgrading Australians’ broadband as quickly as possible," Mr Turnbull said in a statement.
The Corporate Plan can be found here