OECD throwing weight behind NBN cost-benefit analysis calls

19.11.2009
Intentional or not, the Organisation for Economic Development (OECD) appears to have subtly thrown its weight behind shadow communications minister, senator Nick Minchin's calls for the Federal Government to do a cost-benefit analysis of its National Broadband Network (NBN).

In its most recent summary report for the OECD noted that while the next couple of years look good for the domestic economy (it tips a rise in GDP growth of 2.5 per cent next year) there are steps the Rudd Government should be taking to up the benefits.

"To maximise the positive impacts of their investment programme, the authorities should submit proposed projects more systematically to a rigorous and transparent cost--benefit analysis," the report reads.

While the OECD has not responded to requests for clarification around which investments it believes should be submitted to "rigorous and transparent cost--benefit analysis", it is reasonable to assume they include one of the most ambitious and expensive infrastructure projects put forward in the last 12 months -- the $43 billion NBN. And while the OECD gives credit to the Government for its handling of the economic downturn through its stimulus package, the inclusion of the above statements in what is admittedly only a short two paragraph summary gives some support to the calls made by Minchin.

In recent weeks,

The report, which studied 6,000 New Zealand businesses, found while broadband adoption did boost productivity, no productivity differences where found across different types of broadband.