Residential Development Council Board to meet Malcolm Turnbull

Residential Development Council Board to meet Malcolm TurnbullFederal Communications Minister Malcolm Turnbull has met with the Residential Development Council Board to discuss the findings of the Vertigan Review of the NBN.Minister Turnbull has ruled out full cost recovery from developers for NBN delivered in new housing estates. The Minister’s decision is in-line with the RDC’s advocacy on this issue in the last six-months.The Minister committed to establishing an industry reference committee with representatives from the Residential Development Council, the NBN Co., the Minister’s own staff and his Department.The Independent Panel’s recommendation that existing contracts between developers and the NBN Co be renegotiated is a new concern for the industry. The RDC is collaborating on a more reasonable policy position to be taken to Cabinet. It is intended that this issue be resolved by end of 2014.The likely dimensions of a new regime for NBN delivery in greenfield developments are:Greater control for developers over delivery of NBN services with a build transfer rebate model;Changes to specification for pit-and-pipe aimed at reducing costs borne by developers;Development ‘clearing house’ which aims to stimulate price competition amongst build transfer contractors.A downside consideration is the likelihood of cost recovery for fibre backhaul in developments outside of the footprint for NBN’s transit fibre network. The NBN’s transit fibre network follows the urban growth plans established by State governments however in roughly 10% of cases where development is occurring outside of these areas, cost recovery may be applied for backhaul.