NBN war of words heats up
Minister for Broadband, Communications and the Digital Economy Senator Stephen Conroy has hit out at Federal Opposition communications spokesman Malcolm Turnbull, describing him as “either lazy, financially illiterate or both.”
Senator Conroy’s accusations come after Mr Turnbull described the National Broadband Network (NBN) as being "centre of Labor’s 2012-13 Budget cooked books.” Saying that the surplus relies on shifting expenses forward from the 2012-13.
“According to the 2011-12 DBCDE portfolio Budget statement, spending on broadband by the Department was forecast to be $57 million this year. But in Tuesday’s 2012-13 portfolio Budget, this figure is revealed as having exploded to $484 million because inducements provided to Telstra for its deal with NBN Co have been brought forward as lump sums totalling $421 million to be paid out before June 30,” Mr Turnbull said in a statement.
“As a former merchant banker, Mr Turnbull presumably knows that you pay your bills when they fall due. The $450 million additional Departmental expenditure in 2011-12 is the payments made to Telstra under the terms of the Definitive Agreements.
“Similarly the claim of a $400M blowout in equity is false. Mr Turnbull’s assertion that there has been an increase in equity of $400M simply reflects that equity funding of $350M was deferred from 2011-12 to 2012-13. This was detailed in the 2011-12 Departmental Portfolio Additional Estimate Statement on page 39.”