CANBERRA (AAP)

Communications Minister Helen Coonan says the federal government has not ruled out changing the law to encourage telecommunications firms to invest in high-speed broadband.

Labor repeatedly targeted Senator Coonan in question time on Monday, accusing the government of failing to ensure Australia's broadband infrastructure kept pace with that of other developed countries.

It follows Opposition Leader Kevin Rudd's unveiling of a plan to dip into the Future Fund to help pay for a $4.7 billion high-speed broadband rollout.

The government says there are two current proposals for fibre-optic broadband: one put forward by Telstra and another by G9, a consortium of telco groups.

But Telstra last year scrapped plans for a $4 billion fibre-optic network when negotiations with the competition watchdog over regulatory and pricing issues collapsed.

"Doesn't that make the claims that prospects (for a broadband rollout) are reasonable, a complete nonsense?" Labor's Claire Moore asked Senator Coonan.

Senator Coonan said the government was prepared to consider minor changes to the law to encourage private enterprise to establish fast broadband networks.

"My door is open, I'm willing to discuss a proposal with telecommunication providers who may want to speak to me about these arrangements," she told parliament.

"I've never ruled out any minor adjustments to the telecommunications regime, I've always been interested to see where the barriers are ... (and) to in fact have a look at what might provide incentives for companies to invest.

"What I have done about the regulatory regime is to say that we continue to look at it, we continue to monitor the position."

Senator Coonan described Labor's broadband plan as "ditzy" and "daft", reiterating that the government wanted to see high-speed broadband as a commercial venture that would not expose taxpayers to risk.

Finance Minister Nick Minchin said Labor's plan to raid the fund to help pay for a national high-speed broadband network was "cynical and short-sighted" and would leave a huge tax burden on future generations.
26/03/2007 03:57:34 PM