Bosses show little support for NBN

Written By Unknown on Minggu, 29 September 2013 | 23.08

Shadow Communications minister Malcolm Turnbull defends Rupert Murdoch on Labor's NBN, saying the media mogul probably doesn't expect the NBN to be completed.

It will cost about $40 billion, but a significant number of Australia companies don't think the NBN will make any difference to their business.

The Galaxy poll of more than 400 senior executives found more than one third said it would not boost their productivity.

Fifty-one per cent of respondents said it would make a positive difference their business.

The Coalition claims the NBN project could blow out to $90 billion but the government maintains it will be delivered for $37 billion.

This comes as economists warn the budget is likely to face a further downgrade after the September 7 election. UBS yesterday warned the budget won't return to surplus in 2016-17 as forecast by Treasurer Chris Bowen in the pre-election update.

"We expect a new budget to forecast larger and persistent deficit in coming years," UBS economist George Tharenou said.

But Mr Tharenou is upbeat there will be a post-election bounce in business confidence, if the Coalition wins, supporting a pick-up in the economy in 2014.

Opposition leader Tony Abbott this week abandoned a previous pledge to return the budget to surplus in the next term of parliament.

Mr Abbot declared it would be "foolish" to promise a surplus as the budget was under huge pressure.

The Galaxy survey, commissioned by executive office supplier Servcorp, shows that 62 per cent of corporate Australia is dissatisfied with the Federal government's support for business.

A Coalition victory was regarded by 45 per cent of executive respondents as being better for business, but 37 per cent believe it will make no difference who wins.

Servcorp's chief operating officer Marcus Moufarrige said the NBN rollout is not getting anywhere near the level of cut through with business that it should as a major productivity saving tool.

"There is doubt over whether the infrastructure will be delivered at all: with 30 per cent of the budget already spent, less than five per cent of the NBN has actually been delivered," he said.

"Faster broadband will boost productivity which is a positive for business but the current execution of the plan is the problem. The NBN needs to be more flexible in its approach to technology."

The Coalition and Labor are locked in a battle over the cost of their competing delivery systems to bring high-speed broadband to homes.

Opposition communications spokesperson Malcolm Turnbull claims Labor's $37 billion broadband network could end up costing around $90 billion due to cost blowouts and overoptimistic pricing assumptions.

Labor's NBN pledge is to deliver fibre to 93 per cent of premises in Australia by June 2021 with a peak speed of one gigabit per second.

The Coalition's $29.5 billion plan promises speeds of up to 50 megabits per second by 2019 for at least 90 per cent of consumers using fibre cable to "nodes" up to 800 metres from premises, and then leverages the existing copper infrastructure from the node to homes and businesses.

stephen.mcmahon@news.com.au

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