Press conference - Perth, Western Australia

BEV JOWLE, CONSUMER CREDIT LEGAL SERVICE: Welcome to Consumer Credit Legal Service. We welcome the Minister here today joining us to make this very important announcement. Ourselves and consumer advocates across Australia are very pleased to welcome the Minister and support the announcement made today of reforms to the Telecommunications Code of Practice.

The current Telecommunications Code of Practice is a voluntary code, and we’re looking forward to this now being hopefully an enforceable code. For too long consumers have not had safeguards and projections in the telecommunications industry, and we all now know that telecommunications are an essential service and absolutely important for every Australian to have good safeguards if they do find themselves in financial hardship.

It’s our pleasure today to thank the Minister for bringing on these reforms now, and also we’re very pleased to support those reforms along with our advocates in the Eastern states. We importantly want to see the detail obviously, and we think that an enforceable code will assist consumer advocates and financial counsellors alike to be able to represent their clients and provide good financial hardship services. However, we would also like to see proper reform in the area of family and domestic violence, in things like service complaints and billing, also things like selling practices, credit assessments and payment methods. So there’s quite a broad scope of work to do here in the telco, so we’re hoping that these enforceable undertakings will help with those sorts of provisions as well.

However, what we do say is if you are experiencing financial hardship – and this is very important – please don’t hesitate to call out, ring the National Debt Helpline if you want to find a financial counsellor on 1800 007 007, or you can call us here at the Consumer Credit Legal Service on 9221 7066. And it is important that people reach out early to get that support. Thank you.

MICHELLE ROWLAND, MINISTER FOR COMMUNICATIONS: Thank you, Bev. And thank you to you and your team for everything that you do supporting consumers in a wide range of areas, including in respect of telecommunications services.

Telecommunications services and communications generally are not a nice to have – they are absolutely essential for our functioning in today’s society. They’re essential for our work, our study, even the way in which we interact with governments. For that reason, the Albanese Government understands that in the context of the cost of living pressures that we have in Australia at the moment, we need to do everything we can to ensure consumers maintain access to these essential services.

We know that consumers are doing it tough. They are doing it tough when it comes to paying their bills. And the statistics speak for themselves. We know that some one in four Australians are having difficulties paying their utility bills, and we know that about half of those who are having difficulties are having difficulties paying their telco bills. But less than one per cent of people who are experiencing those difficulties are actually accessing the financial hardship provisions that are already there for the telcos to provide.

In the context of this – and also understanding the feedback that I have received over the past year from consumer groups and from my interaction with the industry – I have made a decision as Minister to issue a direction to the Australian Communications and Media Authority to create an enforceable industry standard in relation to financial hardship. What this will mean is that we will have much more direct regulation of this area. It will mean that there will be more direct and substantial penalties for noncompliance. But very importantly, what it will do is send a strong message to the sector that the Government and that Australian consumers expect the telco sector to do better.

We know from the experience and the reports from regulators such as the ACCC, the ACMA, from bodies such as the TIO and from reputable consumer groups, including the great services that are being providing here today, that this is an issue for thousands of Australians. We want to ensure in the end that consumers benefit, that they can stay connected, that they understand that help is available. And rather than wait for the current code review process to be concluded, I have decided to take action now to speed this up and to say to the Australian people we understand these cost of living pressures. That’s why the Albanese Government is taking action in relation to cheaper medicines, cheaper child care and fee-free TAFE. But in addition to that, there are essential services such as telco where we can take action right now to provide that support. And that is exactly what we are choosing to do here today.

So in conclusion, I look forward to the industry working with the ACMA to develop a reputable, viable, but above all, a code that is capable of implementation; a standard in this instance that is capable of producing measurable results for consumers to ensure that financial hardship does not mean that they are cut out from having access to essential services such as communications.

JOURNALIST: Bev mentioned the code is voluntary at the moment. So does that mean, I guess, a telco doesn’t have to provide help if someone’s in financial hardship? Or what happens at the moment?

ROWLAND: The code is devised in a framework that is what we call co-regulatory. It is devised by the industry and registered with the ACMA. It operates in a way where complaints can be made about non-compliance and the regulator can direct compliance. But as opposed to an industry standard, you can understand that this is quite a roundabout way of ensuring enforcement.

I want to be clear that the co-regulatory framework has served Australians well. It has meant that we have a competitive environment that continues to be innovative. But in this instance financial hardship should not be a reason why Australians are forced to go without essential communications services. So what we are doing here is saying to the industry we will have direct regulation in this area. It will be done faster than the current code review process, and we will ensure that it is more effective, that it provides those sanctions and those incentives that we need to get quicker results.

JOURNALIST: And what penalties will the telcos face if they don’t comply with the new regulations you’re announcing today?

ROWLAND: There are provisions that currently exist which enable fines of around a quarter of a million dollars for non-compliance, and they compound daily, So you can see that this form of direct regulation is actually much more enforceable and it does provide that very strong message that this Government is serious about ensuring consumers have the right protections and that the right thing is being done by them when it comes to financial hardship.

JOURNALIST: And how many fines have been issued over the last 12 months?

ROWLAND: Over the last 12 months in various area, the ACMA operates in a way that provides incentives, but in relation specifically to financial hardship, that’s one where no financial hardship provisions have been issued in the last 12 months, to the best of my knowledge. But what this will do and what it has always done is provide that incentive. So knowing that that direct enforcement is readily available for this particular provision will send a very clear message to the telcos that this Government is serious about having improvements in financial hardship provisions.

JOURNALIST: Can you give some examples, I guess, of breaches that would attract a $250,000 fine?

ROWLAND: Well, for example, if there’s a case where there is a financial hardship provision that the telco has indicated they will follow – so, for example, putting someone on a payment plan with a certain period of time that they are capable of meeting. If there is an instance where it is demonstrated that they have not done that, that is for the regulator to determine whether it seeks to take action. Again, I do stress that this is an area where traditionally and to great effect this has operated in an incentivised framework where the industry understands that those penalties are there.

I would point out that the ACMA has issued large fines in other areas, including under the Spam Act, for example, and other pieces of legislation under its control. So it is not novel for the ACMA to seek these substantial penalties. But this is the first time that this will be put into a specific industry standard when it comes to financial hardship.

JOURNALIST: Will there be an onus on telco providers to inform their customers of the financial hardship measures that are available to them?

ROWLAND: Currently that exists in the existing code. However, as we have learned from our roundtables and discussions with the consumer groups and with consumers who have been impacted, it appears that this is not always the case. Therefore, by having an industry standard that is being developed – and I should stress that this standard will be developed in consultation with the industry – we will be able to identify those specific instances, including the one that you just mentioned, and ensure that that is put within the standard and it is very clear to the telcos that compliance is required.

JOURNALIST: Is it fair to say that based on the telcos’ performance so far with the voluntary code that the time for carrot is over and it’s time for a bit of stick?

ROWLAND: I think it’s very clear that we need to have a regulatory framework that is fit for purpose, And fit for purpose in today’s current economic climate means that people should not be cut off if they are experiencing financial hardship. They should have support that is available to them, realistic payment plans, but also at point of sale ensuring that people are sold products and services which they are capable of meeting those specific contractual obligations to their telco provider.

There is a strong argument that has been put by some areas, by some parts of the sector, that direct regulation is warranted in a number of areas. I have made this decision as Minister to look at financial hardship and to put that in an enforceable industry standard because it goes across the whole gamut of the telecommunications sector across everything from selling practices, to credit management and billing and the way in which that customer relationship is maintained.

JOURNALIST: Minister, many people living the regions of Western Australia are experiencing difficulty in paying for their telco services. How will these measures assist them?

ROWLAND: It will ensure that the telcos have those incentives to do better. And I think if I put it this way: the option is to wait until the end of next year for this code process to conclude. I have decided to make a decision now which will ensure that these measures come in well before the end of next year.

I think it also sends a very clear message to all the telco providers that people have different circumstances and different aspects of need not only depending on their financial situation but where they live as well. I think your point is very well made that there are many people living the regions who are also doing it tough and in some cases don’t have a choice of provider. That is the message that I have received very clearly from the various consumer interactions that I have had.

I would say to those consumers in regional areas: we hear you. We want to take immediate action in this area. We expect the industry to do better, and I look forward to the industry complying not only with this industry standard, but every other aspect of the current requirements that they have under the Telecommunications Protections Code to ensure that consumers can get the best outcomes and stay connected.

JOURNALIST: Minister, can I ask further to your meeting with local ABC management this week, given the importance of timely news to WA people, particularly in an emergency, are you satisfied that they understand the importance of a timely news service to WA taxpayers?

ROWLAND: I am grateful to ABC management for ensuring that I have been briefed on these matters. I will be seeking further information in respect to specific state broadcasting issues. But at all times, again, I point out that the ABC has editorial and operational independence. It also operates as the emergency broadcaster, and it undertakes that also within its own management systems. But I have made it very clear that the ABC according to its charter is there for all Australians irrespective of where they live.

JOURNALIST: But aside from emergency radio broadcasts and web presence, isn’t it equally critically important in the event of floods, fires, which we see all too regularly here, for that Sunday night news bulletin to be giving people updates in that respect?

ROWLAND: I understand that this is an issue of great concern to West Australians. And it is important that the ABC fulfils its obligations under its charter to provide exactly those things. So I look forward to further engaging with ABC management about these state-specific issues and the way in which it is fulfilling its charter obligations. Again, I do stress that the ABC has editorial and operational independence, but at all times it must comply with its charter.

JOURNALIST: Does David Speers being announced as the new national political lead just three weeks after making Andrew Probyn redundant speak volumes about the wisdom of that decision?

ROWLAND: Consistent with my previous comments, the ABC has operational and editorial independence, and I will not be commenting on those matters.

JOURNALIST: Minister, is the Government doing anything to encourage telcos to provide a low-cost and more affordable alternative to customers in terms of their current mobile plans?

ROWLAND: I’m very grateful to the various consumer advocates who have been long raising this issue of having affordable products. I also note that there are parts of the sector that have chosen to make these low-cost affordable plans available. But I do stress this: that the sector can always do better when it comes to meeting the needs of consumers. The government is looking very closely, particularly in the current economic climate, at what we can do to make things better for consumers.

That kind of innovation and the kind of different packages that are being produced are in response to consumer needs. But as Minister, I will continue to work with the various advocacy groups. I’m very grateful to organisations such as ACCAN, which have been well engaged over the years, CHOICE, for example, well engaged over the years in this area. But also the innovation that has come through to ensure that there are plans that are suitable for customers.

This is not to say that everything is perfect. Of course it is not. When we see the number of consumers under substantial financial hardship who risk losing an essential service such as communications when what can be done is engaging in these financial hardship measures is something we need to be very mindful of. But I am well aware of the need for continuous improvements in this area. We will continue as a Government to look at what policies can be available here to do what we can to ensure consumers get the best deals.

JOURNALIST: Being responsible for the eSafety Commissioner, what are your thoughts on the AFL online nude photos scandal?

ROWLAND: Firstly I’ll point out that this is obviously very distressing for anyone who is involved with this. I do understand that eSafety is working very closely with police and other authorities to have this material taken down and to conduct its investigations. It would therefore be inappropriate for me to comment on individual case circumstances or the progress of that investigation, other than to say it is ongoing.

But I do point this out: the non-consensual sharing of intimate images is an offence. And any Australian who has experienced this can contact eSafety. eSafety has investigative tools and the resources to be able to take meaningful action in this area. In some cases it even has the ability to expose posters and remove their anonymity. So I encourage all Australians to contact eSafety – go to esafety.gov.au – to see what resources are available there. Because certainly this is distressing for those involved, but it’s equally distressing for any Australian who has experienced this kind of online abuse.

JOURNALIST: Is the [indistinct] useful for highlighting the broader issue?

ROWLAND: It is useful for highlighting that this can happen to just about any Australian, unfortunately, which is why the eSafety Commission is there for anyone. Thank you.