A CABINET briefing document obtained by The Weekend Australian confirms the Rudd government was aware of significant risks to the National Broadband Network rollout and that delays would strip $1.4 billion in revenues throughout the election campaign.
The document revealed an assessment by consultants KPMG -- who had been engaged by the then Department of Broadband, Communications and the Digital Economy Department -- warning that the ramp-up to achieve rollout targets was "presenting a significant risk to the project" and that this "has not been achieved in any international comparison".
The summary of a cabinet submission by then communications minister Anthony Albanese for the meeting scheduled for July 22, a fortnight before the election was called, showed a revised corporate plan for the NBN would be considered. The NBN was to figure prominently in the campaign as a signature government policy.
"Given existing delays and the emerging industrial issues, we consider the rollout forecasts are questionable," the summary said. "Further delays will increase funding requirements for the project (existing three month delay cost $1.4 billion in lost revenue)." As well as saying that the planned ramp-up for the NBN had not been achieved in any comparable scheme overseas, the document raised significant questions about project financing.
"KPMG also advised there is a significant risk NBN Co will not be able to raise debt in 2015 without a government guarantee." This was despite the corporate plan assuming $590 million would be raised in that year.
Mr Albanese was pressed during the election campaign on his knowledge of this corporate plan, notably in a debate on ABC's Lateline program on August 12."Anthony is sitting on the latest corporate plan," said then opposition spokesman Malcolm Turnbull. "(He) has not released it to the public.
"Mr Turnbull pressed the then minister. "Well, why don't you produce the latest business plan? It's sitting on your desk. Why don't you produce it? The company gave it to you only a month or so ago."
"That's not right," responded Mr Albanese. "They have not produced the final business plan."
"Oh, I see," said Mr Turnbull. "You've made them keep the draft stamp on it so you don't have to give it out before the election."
"They have not produced the final business plan," replied the minister.
Lateline host Emma Alberici then intervened. "Have you got a date for receiving it?" she asked.
"We have not received -- well, that's up to the board, but we have not received the final business plan," said Mr Albanese.
The cabinet submission summary obtained by The Weekend Australian shows cabinet was to consider a revised plan three weeks earlier.
"We understand Minister Albanese proposes to refer the Corporate Plan back to NBN Co for further work," the document said, "and intends to bring back a revised Plan for Government consideration and release later in the year."
A leaked draft of the plan confirmed the hit to revenues of $1.4bn between 2011 and 2021, and showed the NBN Co expected it would need $1.6bn more funding.