Govt halves $4.7b NBN

Govt halves $4.7b NBN

$2.3b to be borrowed

The federal government will borrow about half of its initial $4.7 billion investment into the National Broadband Network (NBN).

Speaking at Senate Estimates, Communications Minister Stephen Conroy said the government will use $2.4 billion from the Building Australia Fund which absorbed the previous government's $2 billion Communications Fund.

The government committed $4.7 billion into the $43 billion NBN to roll out fibre-to-the-home to 90 percent of premises. The National Broadband Company will foot some $23 billion of the bill, and call for private investment to cover the remaining $20 billion over eight years.

Shadow communications minister Nick Minchin said the government is facing the prospect of substantial borrowing to support the NBN.

“With the government ultimately responsible for this project, it could be faced with the prospect of borrowing all but $2.4 billion of the $43 billion estimated cost,” Minchin said.

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