telstra welcomes labor initiative

The Federal Government has savaged Labor's announcement of a multi-billion dollar plan to improve broadband coverage throughout Australia if it is elected.

Under the $4.7 billion proposal, 98 per cent of Australians would be connected to high-speed broadband Internet over five years.

The network will be partially funded by private investment, with the rest of the money coming from the existing Communications Fund and the Telstra Future Fund.

Treasurer Peter Costello has attacked the idea of using part of the Future Fund for the plan, calling it stealing from future generations.

"The most irresponsible economic announcement of the last 11 years," he said.

The Deputy Prime Minister, Mark Vaile, says taking money from the Future Fund will put extra pressure on the Budget.

"Just remember what the Future Fund is for," he said.

"It is there to support the existing liabilities, contingent liabilities of the Commonwealth, the taxpayers of Australia.

"In so doing it relieves pressure on the Budget every year and I would have thought that a better planning strategy, a better business principle, would be to maintain that capital base."

Labor says there are no budgetary implications of its plan and says the Government has failed to make Australian broadband standards internationally competitive.

Labor leader Kevin Rudd describes the $4.7 billion plan as nation building.

Telstra has welcomed Labor's announcement.

The telco's managing director of public policy, Phil Burgess, says a fast broadband network is essential for Australia to achieve its full economic potential.
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I am so sick of dial-up only available at my place I might just vote Labor first instead of Independant as I usually do. Our local Independant Bob Katter MP has gone off the rails lately anyway.

Dave R.