The Claim
“Promised to continue with their NBN plan even if a cost-benefit analysis (which is yet to be done) shows it does not give a worthwhile return on investment.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim is factually accurate based on the original source and supporting evidence. On February 16, 2014, The Register published an article reporting that Parliamentary Secretary for Communications Paul Fletcher stated the Coalition government would complete the NBN regardless of the cost-benefit analysis outcome [1].
At a Tech Leaders conference on the Gold Coast, Fletcher was asked what would happen if the cost-benefit study showed investment in the NBN would not produce a positive return on investment. His response was direct: "We have made it clear we will complete the NBN" [1].
This statement came after the Coalition, while in opposition, had heavily criticized the previous Labor government for commencing the NBN "without a cost-benefit study that would show whether or not the network will deliver positive return on investment" [1].
Missing Context
The claim omits several crucial contextual elements:
1. Labor's Precedent of No Cost-Benefit Analysis
The Rudd Labor government launched the NBN in April 2009 without conducting any cost-benefit analysis. In May 2009, Communications Minister Stephen Conroy explicitly rejected calls for such analysis, stating: "We do not need any more studies, any more cost-benefit analyses, to know that this is an infrastructure investment that this country is crying out for" [2]. Then-Opposition communications spokesman Nick Minchin described this as an "extraordinary display of reckless abandon" [2].
2. The Coalition Actually Conducted the Analysis
Unlike Labor, the Coalition government did commission an independent cost-benefit analysis. The Vertigan Panel review was announced on December 12, 2013, with the final report released in August 2014 [3]. The Coalition's 2013 election policy explicitly promised "an independent cost-benefit analysis and independent review of regulation" [4].
3. The Strategic Context
Fletcher's statement was made in the context of explaining why the government would complete a project already underway, not initiate a new one. The NBN was already under construction when the Coalition took office in September 2013. The alternative to completion would have been cancellation of an infrastructure project that had already consumed billions in public investment and involved contractual obligations with numerous contractors and suppliers.
4. The Cost-Benefit Analysis Ultimately Supported the Policy
When the Vertigan Panel cost-benefit analysis was released in August 2014, it found that the Coalition's mixed-technology model would provide an $18 billion net benefit to the economy compared to Labor's fibre-to-the-premises plan [5]. The analysis concluded the Coalition's approach was "billions of dollars better than Labor's fibre-to-the-premises plan" [5].
Source Credibility Assessment
The Register (Original Source)
The Register is a UK-based technology news website with a reputation for technology industry coverage, often with an irreverent editorial tone. It is generally considered a mainstream technology publication rather than a partisan political source. The article in question is a direct report of a press conference with specific quotes, making it a primary source for Fletcher's statement. The article's framing is critical of the apparent contradiction between the Coalition's pre-election criticism of Labor and their post-election position, but the factual reporting appears accurate.
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government Rudd NBN cost-benefit analysis 2009"
Finding: The comparison reveals a stark contrast in approaches. The Rudd Labor government launched the NBN in 2009 without any cost-benefit analysis and explicitly refused to conduct one when challenged. Communications Minister Stephen Conroy stated in May 2009: "We do not need any more studies, any more cost-benefit analyses" [2].
By contrast, the Abbott Coalition government:
- Commissioned an independent cost-benefit analysis (Vertigan Panel, 2014)
- Conducted a strategic review of NBN Co
- Released the analysis results publicly
- Ultimately had the analysis vindicate their policy approach
The Coalition's position - that they would complete the NBN regardless of the cost-benefit outcome - was made while the analysis was still underway. Fletcher's statement reflected the practical reality that abandoning a project already under construction would itself have significant costs and consequences, not an ideological opposition to evidence-based policy.
Balanced Perspective
The claim presents the Coalition's position as hypocritical or evidence of poor planning. A more complete analysis reveals a complex policy situation:
Criticisms (Valid):
- There was indeed an apparent contradiction between the Coalition's pre-election criticism of Labor for lacking cost-benefit analysis and Fletcher's statement that the project would proceed regardless of findings [1]
- The statement that "the outcome of the study might be irrelevant" undermined the Coalition's own emphasis on evidence-based policy [1]
Context and Justifications:
- The Coalition did deliver on its promise to conduct a cost-benefit analysis, something Labor never did [3][4]
- The analysis ultimately supported the Coalition's mixed-technology approach as economically superior [5]
- The NBN was already under construction with billions invested; cancellation would have its own significant costs and contractual complications
- The Coalition's policy was specifically designed to reduce costs compared to Labor's FTTP approach, with the cost-benefit analysis eventually confirming this approach delivered billions more in net benefits [5]
Key Context: This situation was not unique to the Coalition - it reflects the challenge of changing direction on major infrastructure projects once committed. The significant difference is that Labor proceeded without any analysis, while the Coalition conducted the analysis and had its policy approach validated by the results.
PARTIALLY TRUE
5.0
out of 10
The claim accurately reports that Parliamentary Secretary Paul Fletcher stated the Coalition would complete the NBN regardless of the cost-benefit analysis outcome. However, the framing omits crucial context: (1) Labor had proceeded with the NBN without any cost-benefit analysis at all, (2) the Coalition actually commissioned and completed the analysis (which Labor refused to do), and (3) the analysis ultimately vindicated the Coalition's policy approach as economically superior. The claim presents the statement as evidence of reckless policy-making, when in context it reflected the practical reality of completing an already underway project, supported by the Coalition's subsequent completion of the promised analysis that validated their approach.
Final Score
5.0
OUT OF 10
PARTIALLY TRUE
The claim accurately reports that Parliamentary Secretary Paul Fletcher stated the Coalition would complete the NBN regardless of the cost-benefit analysis outcome. However, the framing omits crucial context: (1) Labor had proceeded with the NBN without any cost-benefit analysis at all, (2) the Coalition actually commissioned and completed the analysis (which Labor refused to do), and (3) the analysis ultimately vindicated the Coalition's policy approach as economically superior. The claim presents the statement as evidence of reckless policy-making, when in context it reflected the practical reality of completing an already underway project, supported by the Coalition's subsequent completion of the promised analysis that validated their approach.
📚 SOURCES & CITATIONS (5)
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1
theregister.com
Parliamentary Secretary for Comms Paul Fletcher finds an exemption to the Qantas doctrine
Theregister -
2
afr.com
Pressure is mounting on the Rudd government over its plans for a $43 billion national broadband network after Communications Minister Stephen Conroy indicated in Senate question time he would not subject the ambitious project to a cost-benefit analysis
Australian Financial Review -
3
oia.pmc.gov.au
Oia Pmc Gov
-
4
malcolmturnbull.com.au
<p>Frequently Asked Questions on the NBN Cost Benefit Analysis.</p>
Malcolm Turnbull -
5
abc.net.au
A cost-benefit analysis of the National Broadband Network (NBN) shows the Federal Government's plan would provide an $18 billion boost to the economy. An independent panel commissioned by the Government found the Coalition's multi-technology plan to roll out high-speed internet had greater net benefits than Labor's model of fibre to the premises. Communications Minister Malcolm Turnbull said the review modelled four scenarios and found the Government's model would deliver about $18 billion in net benefits compared to almost $2 billion under Labor. But the Opposition said the report was not the independent analysis that was promised and was not worth the paper it was written on.
Abc Net
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.