Economic and Finance Committee: National Broadband Network

Mr ODENWALDER (Little Para) (11:22): I move:

That the 88^th report of the committee, entitled National Broadband Network, be noted.

The National Broadband Network has been front and centre in Australian policy-making for the best part of the last decade. Originally conceived by the Rudd Labor government, the NBN was intended to provide state-of-the-art optical fibre connectivity to more than 90 per cent of the Australian population, with the remainder to receive a combination of fixed wireless and satellite services.

Since the election of the Coalition government in 2013, the network and its fundamental structure has undergone significant alteration. The original rollout of the fibre to the premises has been replaced by a combination of technologies, known as the multi-technology mix model. This model combines small elements of the original fibre to the premises rollout, but the large majority has been replaced by fibre to the node and other technologies.

Given the magnitude of the changes to the NBN and its potential impact on South Australia, the Economic and Finance Committee resolved, on a motion from the member for Kaurna, to inquire into the NBN from a South Australian perspective. Among other things, the inquiry would allow proper appraisal of several issues, including the current status of the network, prospects for the future and the likely effects of the change from fibre to the premises to the multi-technology mix model.

The final report which I note today contains 19 recommendations covering four main areas: the NBN rollout in South Australia, the NBN and the role of state and local government, the benefits for health and education and the benefits of broadband for South Australia. As part of this inquiry, the committee resolved early on that we would take our inquiry out of Parliament House, and it made several field trips, touring facilities and hearing from witnesses in our northern and southern suburbs and in regional areas and also trialling teleconferencing technology to speak to experts and witnesses interstate.

The committee received evidence and heard testimony from a large range of witnesses concerning the progress of the NBN rollout and also the nature of the technology likely to be used in different parts of the state. This included the likely allocation of the various technologies to different areas of South Australia and the use of satellite in more remote regions.

As we have seen testimony to recently in the media, the committee received worrying testimony concerning the state of the copper network and its suitability for the ever-increasing demands that will inevitably be placed upon it. The major shift in the new multi-technology-mix model is, as I said, away from fibre to the premises and towards fibre to the node, and this of course is a particular concern because fibre to the node, the principal plank of the new multi-technology-mix model, is critically dependent on the existing copper network.

The importance of proper communication and consultation, especially for community and business, about the development and implementation of future digital policies was a significant finding of the inquiry. Therefore, several recommendations were made in light of these concerns, including:

That the South Australian government advocate to the commonwealth government that it continue the rollout of fibre to the premises, rather than fibre to the node, to deliver high-quality connections for households, businesses, schools and hospitals in South Australia;

That the South Australian government encourage NBN Co to publish detailed information on the condition of South Australia's copper network; and

That the South Australian government advocate to NBN Co that it improve its communication with local government and community and business groups with additional on-the-ground staff.

We as a committee found that, until the general public and other stakeholders are able to observe the real benefits of broadband technology, uptake would remain at low levels and the notion of instant switching on of the population—an 'if you build it, they will come' approach—is simply wishful thinking.

Therefore, the need for active government participation in the adoption of digital technologies was raised by several witnesses, as was the need for government not to stand in the way by imposing excessive red tape. Indeed, government should serve as an exemplar for the benefits of broadband technology by embracing new technology and work practices, such as teleworking by the Public Service. The recommendations made in relation to the role of state and local government, therefore, include:

That all South Australian local governments implement a digital economy strategy and monitor its performance;

That the South Australian government embrace teleworking, both supporting state public servants to telework and encouraging other businesses to adopt more flexible practices; and

That the South Australian government investigate implementing a program to help small businesses connect with nearby ICT providers that can improve their digital presence and utilisation.

We found that digital technology is expected to play an increasingly vital role in the delivery of health services, particularly in remote areas of South Australia—a point emphasised from both the teaching and medical practice perspectives.

The successful nature of several e-health trials was described for the committee, but the critical element required for e-health or telehealth to realise its potential is access to reliable high-speed broadband, and this is especially so in the rural and remote regions of this state.

The increasing importance of the education and VET sectors to South Australia's place in a digital future was stressed by several witnesses—in particular, the increasing importance of science, technology, engineering and mathematics (STEM) subjects. We also found that there is a need for government promotion of ICT training at both VET and university levels, particularly to cope with the projected worldwide demand in the ICT sector.

We were pleased to visit several schools and we witnessed the incorporation of many aspects of digital education in the curriculum at various age levels. We observed early primary school students learning about coding and utilising digital learning tools such as Bee-Bots, which are robots the children can program themselves.

We also saw high school students incorporating elements of the gaming culture, such as Minecraft, into their learning. It was explained to some of us who are not as au fait with this technology as others that the more enjoyable the students found these digital lessons the less intimidated they felt, and we saw this ourselves.

The teething issues encountered by early adoption schools, though, were highlighted. It is vital that solutions to these problems are shared as more schools come online, so recommendations in the health and education sphere include:

That the South Australian government actively promote and, where possible, facilitate the implementation of telehealth programs in the delivery of primary health care and acute hospital services;

That the South Australian government increase ICT training programs through the VET sector and encourage a similar increase in the university sector to meet the expected increased demand;

That the South Australian government, through the public education system and the VET sector, increase the provision of science, technology, engineering and maths subjects to meet the projected demand; and

That the Department for Education and Child Development, using the lessons learned from early adopter NBN schools, prepare promotional material highlighting the benefits of being NBN connected for both teachers and students.

Access to high-speed broadband in semi-rural regions of the state, such as Willunga, has resulted in many people relocating to avoid issues associated with more concentrated urban environments. The shift to such regions is expected to increase as they become connected to the network. There is considerable opportunity, therefore, to promote regional growth in the state through the accessibility of reliable high-speed broadband. The committee therefore recommends:

That the South Australian government, in conjunction with local government, actively promote those areas of the state that have been connected to the NBN; and

That the South Australian government use the NBN and its benefits to promote regional growth in South Australia.

It is imperative that we have a broadband network that not only meets the state's current demands but is also flexible enough to meet future demands, many of which have yet to be conceived.

I want to thank the members of the committee for working so hard on this fairly lengthy inquiry, particularly the member for Kaurna, who instigated this inquiry. I know he has a real and genuine interest in innovation and new technologies and the potential they have to create jobs in the future, which of course is the main game. I also want to thank the members for Wright, Colton, Unley, Stuart and Bright.

The committee also went through several changes of personnel during its lengthy inquiry. I want to thank Susie Barber and Lisa Baxter for their input early on and for their excellent advice. I also want to thank Kendall Crowe, who came in in the middle of the inquiry and picked up really well where they left off and guided us through the state on our journey. I also want to thank our research officer, Dr Gordon Elsey, who also came fairly late in the piece as the permanent research officer.

Many people came to us with information and evidence, and I want to thank them all. I want to make particular mention of the school communities who allowed us to visit and who were so generous with their time. I am sure we all learnt a lot. I commend the report to the house.

The Hon. P. CAICA (Colton) (11:31): I will be very brief in my comments. I very much enjoyed this inquiry. It was excellent. People in this house would know that I know as little as anyone else—in fact, less than anyone else—about the interweb and all those things that—

Mr Gardner interjecting:

The Hon. P. CAICA: He plays a game. He pretends: I don't pretend. Notwithstanding that, I do understand the importance of technology to this nation and the transformational nature of what the NBN is meant to achieve, and it is meant to transform our nation and transform it significantly. I do hold concerns that maybe in some areas, from the evidence we received, we are getting a second-best or third-best product with the deviation from the initial proposal to have, in the majority of cases, fibre directly to the home. We know that is no longer the case, save and except for greenfield sites that exist in areas such as the member for Kaurna's area.

What I particularly enjoyed was visiting the schools and seeing the difference that those early adopters, such as Willunga High School, were able to achieve for their students through the use of this technology. Particularly outstanding were the young dynamic teachers who were delivering courses to the students utilising this form of technology.

I am not an educator, but I do know that education is about getting the hook and hooking students in such a way that they enjoy what they are doing, and this technology was engaging students who previously had trouble being engaged to do some fantastic work. It is that hook that has got them to where they are, and it was really terrific. That was also the case at Aldinga Primary School, where they were working with the Bee-Bots. I can tell you that the six and seven year olds were far better at coding those Bee-Bots than I was.

Also, our visit to Port Augusta was terrific where, again, we visited schools, but also we were visited by members of the business community. I make this point, and it was made in the comments by our chairperson: it is the responsibility of governments across all levels and, indeed, the community to properly prepare itself for the advantages and benefits that we know will exist through the National Broadband Network rollout.

I do express some concerns that funding in those regions was withdrawn by the commonwealth government that was meant to assist, if you like, the community in properly preparing itself to take advantage of the NBN rollout. With that funding withdrawn, it is the responsibility of the state government, local governments and the community to make sure that we are doing everything we possibly can to support and properly prepare our communities to take advantage of this technology.

I too like our Presiding Member, express concern about the evidence that we received about the state of the copper network and, in particular, fully endorse the recommendation that says that a review be undertaken of the state and quality of our copper network here, which we will be reliant on for NBN access, given the change from the commonwealth government's view on what will be connected and to where. It was a really good inquiry, and I congratulate the member for Kaurna for putting it up. I learned more than I ever thought I would about the NBN. Notwithstanding that, I understand and acknowledge that for many other people across Australia it will be of great benefit, perhaps just not for me particularly.

I will finish off by thanking all the members of the committee for their diligence and their work during this period. I would also like to thank our executive officers Lisa Baxter and Susie Barber, and of course our current executive officer Kendall Crowe and researcher Gordon Elsey. They were able to bring home the bacon with respect to this report but would not have been able to do it without the foundation put in place by people who previously served that committee. I commend the report to the house and urge everyone in the chamber to do whatever they possibly can to encourage the commonwealth, and indeed encourage the state government, to ensure that collectively we are doing what we can to maximise the benefits that I know will accrue through the implementation of the National Broadband Network.

Mr PICTON (Kaurna) (11:36): I commend the report on the National Broadband Network to the house. When I first proposed an inquiry into this subject matter I do remember that the former member for Davenport, the Hon. Iain Evans, who served on the committee, was enthusiastic, but a few others questioned whether or not this was the right thing for a state parliament to be looking at, giving that it was predominantly a federal policy issue. However, I think by the end of the committee's report—which was a unanimous committee report—everyone was supportive that this was a worthwhile endeavour for us to look at, and we have come up with a series of good recommendations that, we think, will take the state a lot further.

This was a very significant inquiry, as has been discussed already. There have sometimes been occasional comments about whether or not the Economic and Finance Committee is hard working, but I think this committee report shows how hard working the committee has been throughout this process. It has conducted nine hearings, interviewed and heard witnesses, including 46 people and 29 organisations, and had five school visits. It has also conducted visits out to Port Augusta, the northern suburbs of Adelaide and the southern suburbs of Adelaide. So it has been a very thorough process that has been undertaken.

The committee has come with a very detailed series of recommendations that I encourage everyone to read and that I hope the state government will take note of. Firstly, in regard to the NBN rollout, this is very important for our future infrastructure in South Australia. If this is not done well we will be paying a price for that in future years. There are areas across South Australia, including most of my electorate of Kaurna, that are getting the fibre to the premises rollout at the moment; in fact most of my electorate—pretty much everywhere except for the suburb I live in, Port Noarlunga—has fibre to the premises rolled out. So Seaford, Aldinga and associated suburbs are all connected to fibre to the premises, and we are seeing that making a huge difference for people's households, for people's local businesses, but also for important institutions such as schools in the area.

Unfortunately, that is not what is going to happen across the rest of South Australia. We are now going to have what has been called a multi-technology mix. Appropriately, that is pulling in some of the infrastructure that is available through pay TV—in particular Foxtel cables and the previous Optus Vision cables—and I think there is great opportunity there. However, in regard to fibre to the node, what we are going to see is people having a second-class connection in those areas, and we are calling upon fibre to the premises to be the preferred model and hope that the state government will be advocating to the commonwealth about that.

A lot of the evidence we heard on this committee was about the state of the copper network, and we heard some very worrying evidence in regard to the state of that network, particularly through some of the measures that have been taken over previous decades. They were well-intentioned measures at the time, such as Telstra's sealing the CAN program, that have inevitably led to quite a lot of that copper being corroded over time. We have heard evidence that in some hospitals in country South Australia, places like Orroroo and Laura, if it rains the copper connection ends and those hospitals are no longer connected, both to phones or the internet. That is a significant worry if we are relying upon that copper for the future of the internet network in South Australia.

We have also heard a lot of evidence with regard to satellite services. I know members who represent remote areas will be very interested in this because, inevitably, if you live in a remote area then satellite is what you are going to have to rely on for your connection to the internet in the future. That is increasingly important for all sorts of services, particularly things like School of the Air in remote areas. At the moment, there is an interim satellite solution and we are seeing that as a very clogged service. People are getting very slow download speeds, the service is very expensive to run and it means that the opportunities available for people in remote areas are nowhere near as much as they could be. There are new satellites being launched by NBN Co, but we have heard evidence that if too much of South Australia, or indeed Australia, has to be reliant upon that satellite connection then we will have the case where those speeds become slower over time and the price becomes more expensive and people in remote areas will miss out.

We also heard a lot of evidence about how the NBN is being rolled out to communities. A lot of the funding for facilitation and community engagement has been cut over the past two years by the federal government. That means that we have gone from a number of staff being employed to work with community groups, to get out there and explain to businesses how to connect, to one or two people in South Australia doing that job, which across such a broad state it is almost impossible for them to adequately provide that level of service.

There was also, originally, a lot of lead sites being promoted across the state where local governments were being funded to run engagement projects and to set up community hubs to lead the NBN rollout. Unfortunately, all of that funding has been cut. When we went to Port Augusta and spoke to the Port Augusta City Council they explained what their plans were under the previous model where they were going to be funded to set up a lot of community hubs, including, importantly, for the Aboriginal community in Port Augusta. All of that cannot happen now because there is no more funding from the commonwealth to make that happen. So, that forms a recommendation in our report as well. We are also calling for better information on where the rollout is going to be. NBN Co has made some steps in that regard, but we want to see that stepped up in the future.

A large part of the report dealt with what the opportunities for South Australia are in this regard. This is something that I am very passionate about. As this technology is rolled out we do not want it to be used just to watch TV shows, we want it to be used for education purposes, for employment purposes, for developing new businesses and for improving services like health care across South Australia. This is what forms the vast majority of recommendations in our report. For instance, we want South Australia to be a leader when it comes to teleworking, and this has already been led by many businesses across Australia and by many individuals where they can use fast broadband connections to operate from anywhere in Australia.

Ideally, if we can do this well we can have people working for national or international firms or for national or international clients, based in South Australia, either in Adelaide or across regional South Australia. That, of course, relies on having a good broadband connection but it also relies on us taking some steps to be a leader in this regard, and we are hoping that the public sector can be a leader when it comes to that. We also want to see more start-ups, more home businesses in South Australia. As the NBN is rolled out to households there is greater opportunity for people to set up businesses in their own homes. We are hoping that some of the red tape that could apply to that, from a planning perspective, could be cut through.

One of the huge opportunities is with regard to education. As I mentioned, we visited some five schools across South Australia, some who have the NBN and some who desperately want the NBN (as the Port Augusta High School said to us). I think the highlight for me was visiting Willunga High School. They were one of the leaders, they were one of the first schools in Australia to get the NBN, and it actually took quite a lot of work for them to get up to the stage now where they can demonstrate how this fast broadband connection has impacted across the curriculum at their school.

We want to see that delivered to schools across the rest of South Australia because that will mean that students will have greater opportunities to use the technology of the future, to learn the languages they will need in the future—things like coding, which we would like to see expand to every school in South Australia—and also to prepare for the jobs of the future. We heard a lot of evidence about how the number of ICT professionals in South Australia is going to grow over the future years, and we need to make sure that the training for that steps up to the mark.

There is a lot that government can do to take full advantage. We want to see schools actively engaged in the rollout, not just by plugging it in but by having programs and learning the lessons of other schools. We want to see those coding skills rolled out. We want to promote areas of the state that have the NBN so that they can be more attractive for business and more attractive for tourists as well. We also want to sort out videoconferencing, which is used well in some places and not well in others, and we want councils to come on board as well.

I would like to thank everybody who gave evidence to the committee and also the committee's staff—Lisa Baxter, Susie Barber, Gordon Elsey and Kendall Crowe—for their hard work and for providing excellent advice. I encourage all members to read the report. This is something that we are going to continue to look at in the future as we grow our economy in South Australia.

Debate adjourned on motion of Mr Gardner.