BUDGET 2009: Rudd splashes tech cash

Dan Warne12 May 2009, 9:15 PM

The Federal Government budget 2009 cuts in some areas that hurt, but tech has won out for once.


Of course, the big ticket item in the Government's budget announcement this evening focused around the $43bn fibre-to-the-home broadband network, and the government announced it has paid up on its $4.7bn election promise, and laid down that amount of cash to get things going.

It has also formed the new company that will build the network, though it wasn't given a name, nor were any staff announced. For the record, it is ACN number 136 533 741.

The government also recapped the key things it has done since the announcement of the FTTP network:

  • the approval of a FTTP and wireless rollout by the Tasmanian government, which will commence by July.
  • It has a group working on a report for "early 2010" which will figure out the operating arrangements for the national broadband company.
  • It will figure out the changes to the law needed to allow developers of "greenfields" estates to install FTTP technology that would be compatible with the national network by July next year.
  • It has identified broadband monopoly spots where only Telstra has fibre backhaul to the area, and it is installing its own fibre backhaul to create price competition.

However, beyond the broadband network, there were plenty of other nuggets of welcome funding in the tech space:

$80 million to promote broadband takeup in regional areas, which includes $15.3 million over three years for the ABC to create 50 online Local Regional Broadband Hubs, which will apparently be "web sites and portals, and ‘virtual town squares’ for communities to share experiences". Sounds a lot like Microsoft Bob to us, but then the ABC usually churns out pretty high quality stuff, so we won't pre-judge it.

Another $14 million for the "Digital Regions Initiative" to take it up to $60 million funding over three years. It is a bit hard to cut through the government bureaucrat-speak on the webpage about it, but it appears to be a Federal initiative to jointly fund dragging local and state governments in remote areas into the online era of service delivery. "It will co-fund innovative digital enablement projects with state, territory and local governments. It is a collaborative approach to improve the delivery of education, health and emergency services in regional, rural and remote communities."

$5 million to fund "Rural NBN Coordinators" who "would be assigned to regional backbone projects. They will live and work in the local community, have a sound knowledge of broadband, and be able to quickly establish strong working relationships with local governments and businesses,” said Senator Conroy." So, whether it's a lamington drive that's needed, or council approval to put a WiMax tower in the local church, you can count on your Rural NBN Coordinator to get the job done.

$140 million to help people fix up antennas, obtain set-top boxes and set up their TV for digital TV. This will be primarily targeted at people who couldn't afford to do so themselves, so a household must have one resident who is a recipient of the full Aged Pension, Disability Support Pension, Carers’ Payment or equivalent payment from the Department of Veterans’ Affairs.

People in outer metropolitan Adelaide, where there is apparently poor TV reception, may get their towers upgraded too, "if required" according to the government -- which doesn't sound like an iron clad funding promise. In fact, no numbers were actually mentioned in this particular announcement. “This additional funding will be available if required to supplement funds allocated in the 2008–09 Budget to address reception problems along the Para Escarpment, in the Ingle Farm to Craigmore area,” Senator Conroy said. “Television reception in this area has troubled some residents for a number of years.

Funding of the research organisation National ICT Australia (NICTA) through to 2015, a four-year extension worth $185.5 million. NICTA does research in areas such as security, transport, environment, broadband, water management and health, including medical implants such as the bionic eye, and has five research labs (two in Sydney and one each in Melbourne, Brisbane and Canberra), with over 250 research staff and 300 supported PhD students.

Expansion of the Do Not Call Register to cover business numbers, fax numbers and emergency service numbers (yes, it seems telemarketers try to sell steak-knives to telephonists at fire and police stations, too.) This will cost $4.7 million but the telemarketing industry will pay back $3.5 million of it, which seems fair to us. Community broadcasting services such as local TV and radio stations will get $2.5million in funding for training courses. If that sounds surprisingly generous to you, given the economic times, there is a focus point for the funding: "These training places will support the special training needs in radio for the print handicapped and Indigenous broadcasting."

A new energy efficiency program worth $100 million to develop a "smarter and more efficient" energy distribution network that will use a network of sensors connected by -- surprise surprise -- the government's broadband network -- to more easily integrate renewable energy like solar and wind power into the grid, and enable energy generated in homes, schools and businesses to be stored and shared. It will also include smart meters in homes, which will allow consumers to access immediate information on how much energy they are using, at what cost, and how they can save money.

Lastly, and it may not exactly be tech, but it does come from Senator Conroy's office -- the ABC and SBS finally get massively increased funding. The ABC's funding levels will rise dramatically compared to what the Howard government had allowed in its decade in power.

ABC and the SBS get an additional $185.3 million in the 2009–10 Budget, which will allow the ABC to raise its Australian drama production from a paltry 20 hours a year to 90 hours per year. It will also be able to launch a dedicated ad-free, kids' digital TV channel, featuring "high-quality educational, commercial-free viewing options for Australian families” as well as online services.

The SBS will receive an additional $20 million over three years to enable it to provide up to 50 hours of new Australian content annually.

The Government also said it remained committed to completing Australia’s conversion to digital TV by December 2013, which will save $11.4 million over three years due to the closure of ABC/SBS analog broadcasting.

However, bad news for ABC NewsRadio listeners -- $1.6 million is being returned to the budget following delays in the planned rollout of NewsRadio services, though it's not clear what these were to be.


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Raindog (Senior Forumologist):

Yes folks you too can watch your nation go down the plug-hole in digital clarity, while you sit around and wonder where the jobs went!

$15.3M for 50 rural web cafes, who said the bush would miss out on broadband? All you have to do is drive a few thousand kays down the track and you can experience actual broadband in the bush form one of a whole 50 convenient locations. With such amenity you'd wonder why the bush is still complaining.

A new energy efficiency program worth $100 million to develop a "smarter and more efficient" energy distribution network that will use a network of sensors connected by -- surprise surprise -- the government's broadband network --

I thought this was nonsense only NSW labor would expect us to believe but looks like Kev thinks its a go-er too. I'll be astounded to see how even the most complex network of sensors will make up for the lack of copper to carry sufficient Megawatts but hey Kev can do anything.
I do wonder if the sensors will all be mains powered like NSW Labours warning and alert system?

It will also include smart meters in homes, which will allow consumers to access immediate information on how much energy they are using, at what cost,

Those meter will need quite few digits to display the costs for even modest consumers.


And finally after already canning Solar rebates for anyone who could actually afford to install it, Kev is offering $140 million to help people fix up antennas. That's a real indication of Labor's environmental credibility. But if nothing else it does give a good indication of exactly what Labor expects a large proportion of the workforce to be doing a lot of real soon.

12 May 2009, 10:48 PM (10 months ago)report abuse Send to a friend reply

agami (User):

There's just no pleasing some people.

A Local Regional Broadband Hub is not a place you drive to, as the article states "web sites and portals, and ‘virtual town squares’ for communities to share experiences".

The only problem with the Australian government is that it doesn't translate all of it's initiatives into the multitude of dialects spoken by their voters. It's very hard to get translators, e.g. Most people that are fluent in both English and Cynic-ese are too busy asking what's in it for them.

13 May 2009, 3:42 PM (10 months ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting agami:
are too busy asking what's in it for them.

Or in this case how much they are going get ripped, paying for Ruddiology and foolish spending.
But hell yeah $900 for a mid range flat screen and now an Antenna bonus, real nation building stuff!


Quoting agami:
The only problem with the Australian government is that it doesn't translate all of it's initiatives

The problem with Australian government is it's be come nothing more than a two horse popularity contest. The opportunity being missed and the debt being accumulated is reprehensible. But if for those who saw the budget as having a tiny something for them, I guess it just doesn't matter.


13 May 2009, 4:50 PM (10 months ago)report abuse Send to a friend reply

Tin (Regular user):

Quoting Raindog:
The problem with Australian government is it's be come nothing more than a two horse popularity contest.


Or more accurately, contest between 2 unpopular entities in which we are still forced to choose one.
Unfortunately, the forced voting system means people with general disinterest still have to vote. And media campaigns between the 2 big names result in people thinking they are voting for the prime minister, not a local representative.... Some people think they are voting for prime minister even in state and local elections!

14 May 2009, 9:07 AM (10 months ago)report abuse Send to a friend reply

The Big Baboo (User):

Of course all these promises assume that the present Govt. will still be in office after the next election :) I didn't vote for them last time and I sure as h..l won't be voting for them next time :)
As for smart meters in the home :)As long as they keep supplying the energy,I'll keep using it. By the way :) I clicked on that ACN number which took me to the ASIC site where if you want to find out anything about what our local banana-bender is up to you have to fork over some hard earned readies :(
No thanks I'd rather stumble on in darkness like I am now and hopefully when I wake up F.Rudd and all his gang will be gone.
Hiya "Raindog" :) How's it going :)

14 May 2009, 2:45 PM (10 months ago)report abuse Send to a friend reply

Tin (Regular user):

It's a general rule that a government will stay in power for 2 terms I'm told...
However I suspect Rudd, Swan and Conroy are pissing enough people off that they won't get another go.

Tip for the next election: Find out the WHOLE election policy for whoever you are considering voting for. Too many people voted in the last election based purely on Work Choices, the Rudd Network and Rudd laptops. Now all those people are starting to rethink because the hidden promises are appearing: Internet filters, carbon credits, etc.

14 May 2009, 2:59 PM (10 months ago)report abuse Send to a friend reply

Aubrey (Advanced member):

Quoting Tin:
It's a general rule that a government will stay in power for 2 terms I'm told...
However I suspect Rudd, Swan and Conroy are pissing enough people off that they won't get another go.


That's very wishful thinking, I'm afraid. Any objective, historical analysis would tell you they are well placed to take the next two elections. And, while I'm more often on Raindog's side than not, the "failings" of the Government in economic and IT matters are being wildly overstated. International comparisons are strikingly in our favour and the prospects of a soft-landing for this recession are remarkably good (and that's from someone who really believed this would be the once-in-century meltdown).

The fact that the Opposition Finance spokesman yesterday quoted Herbert (or was it J. Edgar ?) Hoover as an authority on Government spending and debt puts them so far away from even a hint of economic credibility, they really SHOULD stay in the wilderness for decade at least.



14 May 2009, 4:05 PM (10 months ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting Aubrey:
I'm afraid. Any objective, historical analysis would tell you they are well placed to take the next two elections.

The similarities to the Whitlam era are many. My money is on a second term. And a few tragic and lingering legacies like Medicare to remind punters of their folly.


Quoting Aubrey:
And, while I'm more often on Raindog's side than not,

Well there is a first! Thanks for the plaudit even if it wont win you any adoration from the masses. :>


Quoting Aubrey:
the "failings" of the Government in economic and IT matters are being wildly overstated.

They are? We'd need a few positive outcomes to prove me wrong first.


Quoting Aubrey:
International comparisons are strikingly in our favour and the prospects of a soft-landing for this recession are remarkably good

Media spin is surprisingly in favour (Government hasn't become the largest TV advertising customer for no reason), don't start counting on this soft landing till it actually happens. What companies do you know that presently have a desperate push for workforce growth? Labor may have fabricated a positive number for last month, I'd just like to know where these jobs were?


Quoting Aubrey:
The fact that the Opposition Finance spokesman yesterday quoted Herbert (or was it J. Edgar ?) Hoover as an authority on Government spending and debt puts them so far away from even a hint of economic credibility,

You're right that's far from an indication of competency, but then neither is a $50Billion spend planed entirely during domestic airline flights.
Before condemning an entire party for the random opinions of one of it's more out there backbenchers remember you will be essentially be mandating a government that believes it can solve a crisis of excess spending with a plan of rapid fire and ill conceived excess spending.
You gave to wonder if Kevin was asked to dig a hole whether he would issue instructions for it to be dug out.

Quoting Aubrey:
they really SHOULD stay in the wilderness for decade at least.

that would leave Australia's future in a spiral for the same decade. The dead wood should be removed but that applies equally to both parties. Anyone have a use for a washed up 80's rock star will an inflated self belief?

14 May 2009, 4:34 PM (10 months ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting Aubrey:
they really SHOULD stay in the wilderness for decade at least.

Which would equate to a decade of labour spending? If in 18 month a government can take a record surplus to a record deficit just how much do you think our nation would be in debt after a decade? It's impossible to calculate as overseas lenders would have pulled the plug long before it hit debt realised on the nations current credit rating.

A tired government may well have deserved a loss but our nation and our economy does not deserve 10 years of the incompetent governance we suffer currently.


15 May 2009, 11:02 AM (10 months ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting Tin:
However I suspect Rudd, Swan and Conroy are pissing enough people off that they won't get another go.

I hope you are right, but I don't underestimate the infinite reach of greed, stupidity and self interest. It's likely to take a few more year and a lot more offspring on the employment scrapheap before enough people catch on to the bleeding obvious.


Quoting Tin:
Too many people voted in the last election based purely on Work Choices, the Rudd Network and Rudd laptops.

And most of them lapped up idealistic positions on those same few items. The reality of scarcity of work, unspecified broadband at an unknown price and date and school Laptops ending as low spec net-books just beginning to sink in.


Quoting Tin:
because the hidden promises are appearing:

True and in time people might even work out just how much their free $900 will cost! Whether all this sinks in to enough people, prior to the next election, is yet to be seen.


14 May 2009, 4:15 PM (10 months ago)report abuse Send to a friend reply

Tin (Regular user):

Quoting Raindog:
in time people might even work out just how much their free $900 will cost!


I'm estimating somewhere between $1100 and $1500 per person. Sadly even if you put it into the bank, it's likely to cost you more than if you had been allowed to reject it.

14 May 2009, 4:58 PM (10 months ago)report abuse Send to a friend reply

Aubrey (Advanced member):

I think you guys should start a support group or something. The media is certainly beating things up - but not in a way that is reflecting well on the Government or those who are starting to question the long-term doom and gloom scenarios. In fact, as far as I can see there is nothing consistent in media reporting at all - "green shoots" one minute, the end of civilisation the next. It's time we all had a cup of chamomile tea and a good lie down.

I for one, don't mind going into a bit of collective debt to preserve a few jobs in retail and the building sectors. It will be paid off quicker than either the Whitlam or the Fraser/Howard debts of the 1970s. Every economist I know (and I am unfortunately surrounded by them!) talks about balanced budgets over the economic cycle. It is entirely appropriate for Government to spend up on both short term and medium term stimulus when the private sector goes into meltdown. These disagreements about exactly how much and on what amount to very little compared to the decision on whether or not to do it. (and that's why the Herbert Hoover quote by the Opposition Finance Spokeswoman was so damn scary!) Money cycles incredibly quickly in an economy like ours - and none quicker that the coin in poorer people's pockets. I'm happy even if they drink it and put it into pokies!

But now that the Opposition has revealed their own strategy (increase tax on cigarettes) I can see that the debate has already entered a new phase of maturity and commonsense.

By the way, I didn't get the $900 (possibly because I haven't done my tax for a couple of years) but both my kids work in industries that have benefited directly from the stimulus spending. Both were seriously facing shorter working hours or the sack but are now actually working longer hours (for the same money) to cope with the increase in work (school renos for one, people getting pissed and feeding pokies for the other). If they manage to hold on for another six months or a year, the extra tax they pay - and the fact they won't be on the dole - will more than make up for their share of the deficit.

15 May 2009, 1:55 PM (10 months ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting Aubrey:
should start a support group or something.

That's a Canberra thing. Must be.


Quoting Aubrey:
or those who are starting to question the long-term doom and gloom scenarios.

Funny really especially when you consider Kev taking so many clues from the IMF. The same IMF that missed out on forward reporting the GFC entirely. When I see some real business confidence I'll concede an exit from recession. Kev can manipulate the figures all he wishes, but until the count of cranes on the CBD increases he is only fooling himself and the gullible.


Quoting Aubrey:
I for one, don't mind going into a bit of collective debt to preserve a few jobs in retail and the building sectors.

But both these sectors are experiencing job losses. If the argument is that it would have been worse otherwise, then why is retail and building more important than other sectors? Those in other sectors of endeavor fearing job loss may well be considering how much that Kev07 for the common man applies to them?

I have no problem with government debt, at times it is essential, but when that debt is for plasma TV handouts and free antennas for digital TV, you do have to ask if the guys with the purse strings are actually in control of their actions.
How much economic stimulus comes from a retail sale for something stamped Made in Korea? Maybe its other Asian budgets that are being stimulated and we've all got it wrong.
If the stimulus was in the form of (real) funding for hospitals, roads, another Snowy Hydro, construction of more efficient power stations etc I'd be backing the move. Australia will be footing the bill long after all those Korean LCDs and Plasmas become landfill.


Quoting Aubrey:
Money cycles incredibly quickly in an economy like ours

Sure does I work my ass of for it then it goes as tax and is handed to someone else to purchase a Korean TV from there the money goes to help Gerry Harvey and the nation of Korea. Nothing quicker.


Quoting Aubrey:
By the way, I didn't get the $900

Neither did a lot of the community most deserving of such a hand-out or many of the business people that worked so hard to build the nation's surplus.


Quoting Aubrey:
Both were seriously facing shorter working hours or the sack but are now actually working longer hours

And how long exactly do you think a Rudd stimulus will reverse the situation? Or are we going to have stimulus packages arrange for first Tuesday of each calendar month?


Quoting Aubrey:
If they manage to hold on for another six months or a year, the extra tax they pay - and the fact they won't be on the dole - will more than make up for their share of the deficit.

But it doesn't work that way, $900 of tax does not equal payment in full off the national credit card. In real terms it will be decades to recover those debts at reasonable rates of taxation.

16 May 2009, 7:43 PM (10 months ago)report abuse Send to a friend reply

The Big Baboo (User):

Quoting Raindog:
By the way, I didn't get the $900
Actually I did finally get that blasted $900 :) And guess what I'm going to spend it on :) Yup more pc parts which are made in Korea, Taiwan,Japan or wherever but which will probably be installed by an Aussie Techie so he might get a little portion of it :( Sad isn't it.






18 May 2009, 3:44 PM (9 months ago)report abuse Send to a friend reply

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