Hon Alan Cadby questions the Minister for Public Sector Management about the Department of Premier and Cabinet's (DPC) telecommunications initiatives, focusing on competitive neutrality, economic efficiency, and compliance with the Telecommunications Act. The Minister defends the DPC's actions, asserting compliance and economic efficiency.

AnsweredQoN 2214Legislative Council
Asked
17 August 2004
Portfolio
Public Sector Management

QuestionView source ↗

(1) Is the Minister aware of initiatives approved by officials in the Department of Premier and Cabinet (DPC) to facilitate the entry of the public service into the telecommunications industry by building its own network through the acquisition of Dark Fibre and establish its own data and voice networks?
(2) Does the Minister acknowledge that such initiatives will operate to ‘crowd out’ existing suppliers, including local firms, and that this would be contrary to State Government policy?
(3) Has the Minister considered whether the activities of DPC in the telecommunications area are, on the face of it, significant business activities for the purposes of the Competitive Neutrality Policy?
(4) Has the Minister applied competitive neutrality tests to these activities to ensure that Western Australia does not breach agreements in relation to National Competition Policy?
(5) Does the Minister agree with the Federal Opposition’s telecommunications policy, supporting access to Government business as a means of leveraging the capabilities of local ICT businesses?
(6) If no to (5), why not?
(7) If yes to (5), can the Minister explain why his own Department is operating in a way that frustrates the achievement of this policy outcome?
(8) Has the Minister assessed the DPC initiative in terms of acquiring Dark Fibre and building telecommunications networks in the light of whether public sector ownership of the operation is best in terms of economic efficiency?
(9) Has the Minister satisfied himself that the knowledge to operate the DPC’s telecommunications network is institutionalised in a way that enables it to be shared across a number of people in the organisation, to ensure that the State does not risk the failure or degradation of its services in the event that key personnel leave their Government jobs?
(10) Does the Minister find it incongruous that at a time when Governments nationally and internationally are examining ways of using private sector involvement to minimise risk, his own Department is engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government?
(11) In view of the very substantial penalties that the Commonwealth
Telecommunications Act 1997
provides in relation to operating a telephone network without a carrier licence, can the Minister assure the House that the DPC network is fully compliant with this Act?

AnswerView source ↗

Answered
21 September 2004
Responded by
Leader of the House representing the Minister for Public Sector Management
Response time
35 days
(2)    A decision to purchase, as distinct from a decision to lease dark fibre, continues to provide business for pre-qualified suppliers including local firms. (3)    Yes.  The Department purchase of dark fibre in no way contravenes the Competitive Neutrality Policy as no user charges for goods and services are involved. (4)    Yes, see (3) above. (5)    The Federal Opposition’s telecommunications policy has not yet been released, but, in any case the Department is not operating in any way that frustrates access to Government business as a means of leveraging the capabilities of local ICT businesses. (6)    Not applicable. (7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(3)    Yes.  The Department purchase of dark fibre in no way contravenes the Competitive Neutrality Policy as no user charges for goods and services are involved. (4)    Yes, see (3) above. (5)    The Federal Opposition’s telecommunications policy has not yet been released, but, in any case the Department is not operating in any way that frustrates access to Government business as a means of leveraging the capabilities of local ICT businesses. (6)    Not applicable. (7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(4)    Yes, see (3) above. (5)    The Federal Opposition’s telecommunications policy has not yet been released, but, in any case the Department is not operating in any way that frustrates access to Government business as a means of leveraging the capabilities of local ICT businesses. (6)    Not applicable. (7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(5)    The Federal Opposition’s telecommunications policy has not yet been released, but, in any case the Department is not operating in any way that frustrates access to Government business as a means of leveraging the capabilities of local ICT businesses. (6)    Not applicable. (7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(6)    Not applicable. (7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(7)    Not applicable. (8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(8)    Yes. The purchasing of dark fibre cabling to allow the Department to connect three of its sites rather than dealing with each site individually will be economically efficient. (9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(9)    Yes. (10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(10)    The Department is not engaged in an exercise that has the capacity to involve very substantial risks to the finances and operations of Government. (11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.
(11)  The Telecommunications Act 1997 (Cth) creates a regulatory framework for the provision of telecommunications services by ‘carriers’.  The purchase and use of dark fibre by the Department does not bring the Department within the definition of ‘carrier’ contained in the Act and as such those provisions of the Act do not apply.  In any case, the Request for Proposal specifies compliance with the Telecommunications Act 1997 by the provider of the cabling.

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