Simon Lauder reported this story on Tuesday, July 3, 2012 12:51:00

EMILY BOURKE: A local council in Victoria has accused the company in charge of the National Broadband Network of using bullyboy tactics to get its own way.



The council knocked back the NBN Co's plan to build a wireless broadband tower south of Ballarat, and now NBN Co says that area won't be getting a tower and it will be covered by a satellite instead.



The council wants the Commonwealth to intervene, but the Federal Government says it's not getting involved.



Simon Lauder reports.



SIMON LAUDER: Parts of Australia which won't be getting a fibre optic connection to the National Broadband Network are instead getting a fixed wireless connection or, where that's impractical, a satellite connection.



One of the first of a thousand or more fixed wireless towers was to be erected at Napoleons, just south of Ballarat, but that plan has been scrapped and the local council isn't happy.



BILL MCARTHUR: I think this is a really concerning threat by NBN Co to walk away from delivering the Government's rollout plan and it certainly sets a precedent for communities and councils across Australia.



SIMON LAUDER: The Golden Plains Shire Council turned down the NBN Co's application to build a wireless tower at Napoleons after locals raised objections about the impact on the scenery.



The NBN Co has now decided the area will be covered by satellite instead. That's due to start up in 2015. The chair of the council's planning committee, councillor Bill McArthur, says that's not good enough.



BILL MCARTHUR: They've walked away from looking at or challenging our decision or looking at an alternative site and I think the satellite is not due to roll out for another couple of years so I think it's vital for our community to have the access to broadband that was promised.



The fixed wireless proposal needs to be delivered as promised to the community of Napoleons.



SIMON LAUDER: Does the council now regret turning down that application?



BILL MCARTHUR: No, you've got to understand the planning process in Victoria, and I don't think NBN Co understand how planning works. Councillors certainly followed the planning process to the letter of the law and made a decision and that can't be undone other than a challenge through VCAT and NBN Co has declined to go to VCAT and challenge the decision.



SIMON LAUDER: NBN Co says it's been in talks with the local community and the council since September and attempts to find another tower site have been unsuccessful.



The manager of external affairs with NBC Co, Trent Williams, says the company can't afford the time or the money it would take to challenge local government decisions.



TRENT WILLIAMS: We would have to wait up to six to 12 months for that to be resolved or even to get to VCAT in some instances and it's just not practical or economically viable for us to keep cruising the area and to make other areas miss out because of that waiting process.



SIMON LAUDER: Councillor Bill McArthur says the Golden Plains Council has written to the Federal Government asking it to intervene.



BILL MCARTHUR: I think that's a bullyboy tactic, they're sending out a signal to other communities and to other councils that if you step in their way, don't approve what we want to do, we'll pick up our bat and ball and go home and give it to somebody else.



And certainly that is not in the spirit of delivering the Government's rollout plans and I think it's a real threat by a company to hold communities to ransom.



SIMON LAUDER: Trent Williams from NBN Co met with the CEO of the council yesterday. He rejects the allegation of bullyboy tactics.



TRENT WILLIAMS: Now in this case, where a council has rejected the development application and we haven't been able to as yet come up with another site, then it's not bullying, it is the logical conclusion that the alternative service will be satellite.



And can I say it's not a check mate service.



SIMON LAUDER: A spokesman for the Federal Communications Minister Stephen Conroy says the Government won't be intervening. He says the location of fixed wireless towers as well as the overall design of the rollout is a matter for NBC Co.



EMILY BOURKE: Simon Lauder with that report.