Concerns raised on NBN plan for new projects
The Property Council has formulated a submission to the federal government’s ‘Telecommunications infrastructure in new developments policy’, focussing on the key issues arising from the policy, which could impact residential developers and homeowners nationally.
The Government’s policy, released on 12 December 2014, includes proposals for cost recovery measures for the provision of telecommunications infrastructure in new residential developments.
The Property Council’s Residential Development Council (RDC) has been engaging closely with Minister Turnbull in relation to the policy and its implications for the property industry. The RDC has coordinated an industry New Developments Committee, which includes the Minister and the CEO of NBN Co to work through the issues.
The residential development sector has some concerns about the quantum and timing of additional costs, particularly backhaul charges for new developments. Without some reworking, the implementation of these charges will increase the cost of delivering housing, which will in turn be reflected in the prices paid by homebuyers.
In order to ensure housing affordability is not compromised, the Property Council has raised alternate measures for consideration. In order to reduce costs and simplify infrastructure provision we have recommended:
- Introducing a Build Transfer model for NBN provision
- Simplifying the design specifications and providing flexibilities for the location of pit and pipe
- Reviewing pit and pipe warranties
- Increasing development flexibilities
- Using planning reform to achieve efficiencies
- Reducing overall costs and support pre-provisioning by co-development,
- Improving communications regarding connections scheduling and delivery timeframes.
The RDC and its members are scheduled to meet again with Minister Turnbull, NBN Co CEO Bill Morrow, and officials from the Department of Communications in the near future to continue discussions aimed at ensuring critical communications infrastructure is delivered in a timely, equitable and cost-effective way.