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This is a Bill, not an Act. For current law, see the Acts databases.
NATIONAL BROADBAND NETWORK FINANCIAL TRANSPARENCY BILL 2010
2010
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
National Broadband Network Financial
Transparency Bill 2010
No. , 2010
(Mr Turnbull)
A Bill for an Act to require the preparation and
publication of a business case and a cost benefit
analysis of the proposed National Broadband
Network, and for related purposes
i National Broadband Network Financial Transparency Bill 2010 No. , 2010
Contents
1 Short title ...................................................................................................... 1
2 Commencement ............................................................................................ 2
3 Definitions .................................................................................................... 2
4 NBN Co to prepare and publish a business case ........................................... 2
5 Productivity Commission to prepare and publish a cost-benefit
analysis .............................................................................................. 2
National Broadband Network Financial Transparency Bill 2010 No. , 2010 1
A Bill for an Act to require the preparation and
1
publication of a business case and a cost benefit
2
analysis of the proposed National Broadband
3
Network, and for related purposes
4
The Parliament of Australia enacts:
5
6
7
1 Short title
8
This Act may be cited as the National Broadband Network
9
Financial Transparency Act 2010.
10
Section 2
2 National Broadband Network Financial Transparency Bill 2010 No. , 2010
2 Commencement
1
This Act commences on the day after it receives the Royal Assent.
2
3 Definitions
3
In this Act:
4
NBN means the National Broadband Network to be implemented
5
by NBN Co.
6
NBN Co means the company known by that name.
7
4 NBN Co to prepare and publish a business case
8
(1) NBN Co must prepare a business case for the NBN and publish it
9
by 19 November 2010.
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(2) The business case must include detailed 10 year forecasts or
11
projections of the NBN's key financial and operational indicators,
12
including the following:
13
(a) annual costs, revenues, cash flows, capital expenditures,
14
EBITDA, depreciation, taxes, and net profit/loss;
15
(b) year-end balance sheets;
16
(c) all financing events and dividends or returns of capital;
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(d) the numbers of:
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(i) premises passed by the NBN; and
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(ii) residential and business subscribers for services
20
delivered over the NBN;
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(e) average retail and wholesale revenues per user;
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(f) internal rates of return on invested capital.
23
5 Productivity Commission to prepare and publish a cost-benefit
24
analysis
25
(1) The Productivity Commission must prepare a cost-benefit analysis
26
of the NBN proposal and publish it by 31 May 2011.
27
(2) The cost-benefit analysis must include the following matters:
28
Section 5
National Broadband Network Financial Transparency Bill 2010 No. , 2010 3
(a) an analysis of the availability of broadband services across
1
Australia, identifying those suburbs and regions where
2
current service is of a lesser standard or higher price than the
3
best services available in the capital cities;
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(b) a consideration of the different options by which broadband
5
services of particular speeds could be made available to all
6
Australians (particularly those in regional and remote areas
7
and those in underserved metropolitan areas) with an
8
estimate of the likely timeframe and cost of each option;
9
(c) a consideration of the economy-wide benefits likely to flow
10
from enhanced broadband services around Australia, the
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applications likely to be used on such services, and in
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particular a consideration of the different scale of such
13
benefits depending on the broadband speed available;
14
(d) a full and transparent costing of the proposed NBN project,
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including any financial and economic projections, models,
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assumption and sensitivity calculations underpinning the
17
estimates;
18
(e) an examination of reasonable commercial rates of return and
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cash flows for NBN Co, taking into account NBN Co's costs
20
of equity and debt and the risk profile of both NBN Co and
21
the market in which it operates;
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(f) a consideration of what the likely realisable value of NBN Co
23
would be if it were to be privatised after five years, as
24
currently contemplated in the legislation;
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(g) an examination of the design, construction and operating
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arrangements of the proposed NBN project, so that direct and
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indirect outcomes from its construction and operation can be
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identified and evaluated;
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(h) an analysis of the effects of the proposed NBN on
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competition in the Australian fixed-line broadband market,
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including its effects on the scope for competition among
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different technologies for fixed-line broadband provision.
33
(3)
The
Productivity Commission Act 1998 applies in relation to the
34
requirement in subsection (1) as if:
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(a) the requirement were a matter referred to the Productivity
36
Commission for an inquiry by the Minister administering that
37
Act; and
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Section 5
4 National Broadband Network Financial Transparency Bill 2010 No. , 2010
(b) the Minister had required the Commission to hold hearings
1
for the purposes of the inquiry under paragraph 11(1)(a) of
2
that Act; and
3
(c) subsections 11(2), (3) and (4) and section 12 of that Act were
4
omitted.
5