FED:Govt will establish own company to build broadband network=5

AAP General News (Australia)
04-07-2009
FED:Govt will establish own company to build broadband network=5

Mr Tanner said the new company would be broadly equivalent to Australia Post.

"We would anticipate the company would borrow on its own account," he told reporters.

The initial government investment of $4.7 billion will be drawn from the Building Australia Fund.

Additional equity, if required, would be financed by Aussie Infrastructure Bonds, a
move Mr Tanner described as "entirely sustainable".

"The key thing here is Australia can't afford not to do this," Mr Tanner said, adding
it was a capital-constrained world.

AAP mb/rl/cdh

KEYWORD: BROADBAND UPDATE 5 CANBERRA

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