Why are taxpayers funding $350 per household for digital set top boxes that cost less than $60

In this year’s Budget the Government allocated $308 million to provide pensioners with a set top box as part of the switchover to digital television. This is an average cost of $350 per household, when the set top box cost will cost around $60.

The difference, according to the Government, is for administrative costs, installation, antenna adjustments, and access to a support hotline.

This is an enormous premium.  Clearly support is needed for installation, but it seems extraordinary that the average cost for this could blow out to almost six times the cost of the set top box itself. 

The public deserves visibility of how these additional costs are broken up. 

This is information I have sought from the Government by way of a Question in Writing in the Parliament.  I asked for a breakdown of the cost per item or service paid to each of the companies the Government has signed contracts with to deliver set top boxes.

The Government has declined to provide this information.  See their answer here.

They say to do so would compromise negotiations with future providers.

In a situation where enormous premiums are being paid to contractors, this excuse does not wash.

The public deserves to know what is being paid.

With this Government, there is every potential for history to repeat itself.

Under the so-called Building the Education Revolution we saw giant premiums paid to many construction companies, which meant many schools buildings failed the value for money test.

There seems every likelihood that the taxpayer can expect little value for money under the digital step top box roll out.

And then we have the execution risk.  Is this a Government that has the capability to manage a roll out of this nature?  The pink batts fiasco would suggest not.

As a first step the Minister for Broadband Communications and the Digital Economy, Hon Stephen Conroy, needs to provide some comfort on cost. The Government should immediately provide to the Australian public a full break down as to how the $350 average cost under the digital set top box scheme is made up.