According to a report in the Australian, the OECD has expressed serious concerns over the $43 billion national broadband network because of the lack of a comprehensive cost-benefit analysis. For a government that has consistently stressed the importance of boosting Australia’s productivity growth that is damning.
As Treasury Secretary Dr Ken Henry said on 3 September 2009:
To start with, like all government spending, there is a need to ensure that any activity is cost effective. Government spending that does not pass an appropriately defined cost-benefit test necessarily detracts from Australia’s wellbeing. That is, when taxpayer funds are not put to their best use, Australia’s wellbeing is not as high as it otherwise could be. It is important, therefore, that policy-advisers are able to access quality evidence and use robust frameworks to assist governments to judge the relative merits of alternative policies.
It is time for the Government to admit its mistake, and withdraw from the folly that is the NBN. There are many better uses of taxpayers’ resources than the proposed NBN – including putting the money back in the hands of the taxpayer.
“There are many better uses of taxpayers’ resources than the proposed NBN – including putting the money back in the hands of the taxpayer.”
Amen to that.
Jarrah
5 Feb 10 at 12:12 pm
Still Ken Henry remains quiet on the cost benefit of the NBN?
Yet when the Howard government tried a water plan Henry had a top secret meeting with 300 of his work colleagues to criticize the government for not running through Treasury and then was shocked, shocked it got out in to the media.
If the libs win this coming election (unlikely of course) their first act after Rudd’s concession speech would be to publicly fire Henry and request that he doesn’t even go to the office the following work day.
JC
5 Feb 10 at 12:39 pm
Isn’t it an Australian tradition to stuff up communication?
Does anyone have information on how the Telstra and the government negotiations are going?
Isn’t it quite possibly that the NBN will be quietly retired and a cheaper scheme closer to the original plan for a 10Bn plan that the ALP started off with before they decided to go wild on ‘nation bankrupting/building’?
Pedro X
5 Feb 10 at 12:52 pm
No, no, rather than fire Henry it would be more appropriate to take him ‘fishing’ on Lake Burley Griffin:
http://www.youtube.com/watch?v=oUuHsBqYoRk&feature=related
dover_beach
5 Feb 10 at 12:55 pm
http://www.theaustralian.com.au/news/nation/conroy-and-his-duel-with-the-bureaucrats/story-e6frg6nf-1225826896757
This story, obviously planted by or for Conroy claims the cockup of the first tender process for the NBN (the one that cost us $13 million) was all the fault of the public service.
Can anyone think of a reason why he sholud not resign?
ken nielsen
5 Feb 10 at 1:16 pm
Dover – that’s a bit rough.
Sinclair Davidson
5 Feb 10 at 1:25 pm
Well, I haven’t had lunch yet.
dover_beach
5 Feb 10 at 1:31 pm
There doesn’t even seem to be a business plan (where a cost/benefit might normally reside) for the NBN.
Yesterday, Rudd blithely dismissed the $17m or $30m cost of the tender process that failed to find a winner. This money is going down the sewer.
And how much is the government’s debt now ?
Keith
5 Feb 10 at 6:03 pm
And exactly where is Henry’s much touted tax review ?
I guess that is so last year.
On Lateline Jones repeatedly asked Wong for the modelling of the CPRS beyond 2013. Wong in effect refused.
The buried bodies are starting to smell.
Keith
5 Feb 10 at 6:07 pm
http://www.nbnco.com.au/
Semi Regular Libertarian
6 Feb 10 at 12:42 pm
Tanner and the rest of them were unapologetic and actually defended that position as totally justified:
http://www.theaustralian.com.au/business/industry-sectors/lindsay-tanners-75pc-off-broadband/story-e6frg9hx-1225777233789
Mr Tanner said the project could not be subject to a normal cost-benefit analysis because of the “long-term unknowables” of emerging technologies.
“long-term unknowables” – WTF??
In the ‘real world’ of business talk like that let alone making it implemented policy would see you fired on the spot and made the butt of office humour at the water cooler and every xmas party for the life of the company… these people are living in a collective hallucination.
JX
6 Feb 10 at 3:59 pm