Prior to the election I said that the Coalition would ensure the NBN Co honoured all of its existing contractual obligations including those with respect to the Tasmanian rollout.
I also said that we did not have access to the terms of those contracts.
The NBN Co has advised me that it has a contract with Visionstream to run fibre past about 190,000 premises in Tasmania, of which around 18,000 have been already passed by Visionstream making a total of 32,000 passed in Tasmania.
That contract specifies certain rates at which Visionstream will be paid for its work.
I am advised by NBN Co that Visionstream has slowed down its work considerably, passing only 2,000 premises since the 15 of July. The NBN Co further advises me that Visionstream now complains that the rate to which it previously agreed is too low and is not enough to enable it to get the job done.
Visionstream has asked the NBN Co to substantially increase the rate for this work - in other words it has asked for more money to complete the project.
The NBN Co is currently in commercial discussions with Visionstream about this matter and the Tasmanian rollout is receiving close consideration in the work on the Strategic Review.
Honouring an agreement means complying with its terms, but for a contract to be performed both sides have to be be prepared to do that.