EMBARGOED UNTIL DELIVERY CHECK AGAINST DELIVERY
LAUNCH OF TENDERS FOR TASMAN-2
OPTICAL FIBRE CABLE PROJECT
CANBERRA 16 DECEMBER 1986
I AM TODAY ANNOUNCING THE START OF A TENDERING PROCESS OF
MAJOR SIGNIFICANCE TO AUSTRALIA. WITH THIS ANNOUNCEMENT,
AUSTRALIA IS SET TO ENTER A NEW FIELD OF HIGH TECHNOLOGY
INDUSTRIAL DEVELOPMENT.
THE PROJECT IS THE TASMAN-2 OPTICAL FIBRE CABLE SYSTEM A
2,500 KILOMETRE SUBMARINE CABLE WHICH WILL INVOLVE CONTRACTS
WORTH, ON PRESENT ESTIMATES, SOME 120 MILLION DOLLARS.
BY 1991, THE SYSTEM WILL REVOLUTIONISE TELEPHONE AND DATA
LINKS BETWEEN AUSTRALIA AND NEW ZEALAND. BUT IT WILL ALSO
POSITION AUSTRALIAN INDUSTRY TO GET A FOOT IN THE DOOR OF
WHAT PROMISES TO BE A BILLION DOLLAR INDUSTRY: THE
EXPANSION OF THE OPTICAL FIBRE NETWORK THROUGHOUT THE
PACIFIC LATER IN THE 1990' S.
TASMAN-2 IS A JOINT PROJECT OF THE OVERSEAS
TELECOMMUNICATIONS COMMISSION AND THE NEW ZEALAND POST
OFFICE. I HARDLY NEED TELL ANYONE HERE THAT THE
TELECOMMUNICATIONS INDUSTRY IS A POWERHOUSE OF ECONOMIC
GROWTH. OVER THE LAST TWO DECADES, DEMAND FOR COMMUNICATION
SERVICES HAS BEEN INCREASING BY MORE THAN 20 PER CENT EACH
YEAR. THIS EXPONENTIAL GROWTH WILL PROBABLY FLATTEN OUT
BUT, ALL THE SAME, BY THE END OF THE CENTURY, AUSTRALIAN
BUSINESSES, GOVERNMENTS AND INDIVIDUALS ARE EXPECTED TO
UTILISE 50 TIMES OUR CURRENT INTERNATIONAL CAPACITY IN
GLOBAL COMMUNICATIONS SYSTEMS.
INDEED, SUCH IS THE IMPORTANCE TO OUR ECONOMY OF
INTERNATIONAL COMMUNICATIONS THAT FAILURE TO PROVIDE THE
CAPACITY TO MEET THIS DEMAND WOULD SERIOUSLY IMPAIR
AUSTRALIA'S GROWTH AND ITS ABILITY TO PARTICIPATE IN THE
GLOBAL ECONOMY, AS WELL AS WIPING OUT THE POTENTIAL FOR A
NEW AUSTRALIAN INDUSTRY.
TO MEET THIS FUTUPE DEMAND, OPTICAL FIBRE IS THE WAY TO GO.
OPTICAL FIBRE IS AN EXTRAORDINARILY VERSATILE MEDIUM,
OFFERING SECURE TRANSMISSION OF DATA, RELATIVE EASE OF
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REPAIR, AND ECONOMY OVER RELATIVELY SHORT INTERNATIONAL
LINKS SUCH AS AUSTRALIA AND NEW ZEALAND.
ALL MAJOR TELECOMMUNICATIONS ENTITIES AROUND THE WORLD ARE
COMMITTED TO PLANNING OR INSTALLING OPTICAL FIBRE CAPACITY
FOR BOTH INTERNATIONAL AND DOMESTIC USE. IN AUSTRALIA,
TELECOM IS DEVELOPING OPTICAL FIBRE LINKS IN BOTH SYDNEY AND
MELBOURNE AND HAS PLANS FOR A CROSS-AUSTRALIA PROJECT.
THESE ADVANTAGES MEAN THAT AUSTRALIAN COMPANIES WHICH TAKE
UP THIS OPPORTUNITY TO PARTICIPATE IN TASMAN-2 WILL FACE A
WIDE VISTA OF EXPORT OPPORTUNITY IN THE FUTURE.
FOR WITHIN THE NEXT FEW YEARS, OTC PLANS TO EXTEND THE
TASMAN-2 CABLE, WITH LINKS FIRST TO NORTH AMERICA, DUE FOR
SERVICE IN 1993, AND THEN TO ASIA BY 1995. THE WHOLE SYSTEM
THE PACIFIC OPTICAL FIBRE CABLE SYSTEM WILL BE THE
LARGEST COMMUNICATIONS PROJECT OF ITS KIND IN THE WORLD, AND
WILL CONFIRM AUSTRALIA'S PLACE AS ONE OF THE LARGEST
OPERATORS OF UNDERSEA CABLE SYSTEMS.
THUS A KEY FEATURE OF THESE TENDERS IS THE CALL FOR A
SIGNIFICANT LEVEL OF LOCAL MANUFACTURING IN THE CABLE
SYSTEM. OFFICIALS FROM OTC HAVE INFORMED ME OF THE STRONG LIKELIHOOD
THAT THE NEW ZEALAND LINK AND THE FOLLOW-ON PACIFIC PROJECTS
WILL PROVIDE WORK IN AUSTRALIA FOR THE NEXT DECADE, AND
EQUIP THE CONTRACTORS TO COMPETE IN THE MULTI-BILLION DOLLAR
INTERNATIONAL MARKET FOR OPTICAL FIBRE SYSTEMS.
THIS PROJECT COMES AT A CRUCIAL TIME FOR THE AUSTRALIAN
ECONOMY. THE BALANCE OF PAYMENT SITUATION, THOUGH IMPROVED
IN THE NOVEMBER FIGURES, CONTINUES TO BE A MAJOR SOURCE OF
CONCERN TO THE GOVERNMENT. A SIGNIFICANT COMPONENT OF THIS
CONCERN COMES FROM THE DEFICIT IN THE TRADE IN SERVICES,
WHICH LAST YEAR TOTALLED APPROXIMATELY $ 4 BILLION.
IF AUSTRALIA IS TO TURN AROUND SOME OF THESE PROBLEMS
EFFECTIVELY, IT WILL BE NECESSARY TO ENCOURAGE NEW AND
INNOVATIVE SERVICES WHICH WE CAN SELL TO THE WORLD. THIS
PROJECT SUGGESTS AN IMPORTANT MEANS TO THAT END BOTH IN
ITS OWN RIGHT AND BY PROVIDING THE ALL-IMPORTANT
COMMUNICATIONS TOOL TO OTHER AUSTRALIAN INDUSTRIES SEEKING
TO COMPETE ABROAD.
THROUGH TELECOM AND OTC BOTH PROUDLY OWNED BY ALL
AUSTRALIANS WE HAVE ESTABLISHED THE BASIS OF A MAJOR NEW
INDUSTRY. WITH THE DEVELOPMENTS IN UNDERSEA OPTICAL FIBRE
CABLE, WE HAVE EVIDENCE THAT WE AREN'T ABOUT TO LET SLIP OUR
POSITION AT THE FOREFRONT OF WORLD COMMUNICATIONS.
THE PROJECT IS ALSO A GOOD EXAMPLE OF THE GOVERNMENT PUTTING
ITS MONEY WHERE ITS MOUTH IS ON THE AUSTRALIAN MADE
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CAMPAIGN. WHEN AUSTRALIAN GOODS ARE COMPETITIVE IN PRICE
AND QUALITY, WE WANT TO ENCOURAGE THEIR PURCHASE. WE DO IT
OURSELVES, AND WE SEEK A SIMILAR POSITIVE RESPONSE FROM
OTHER AUSTRALIAN COMPANIES AND CONSUMERS, TO DEMONSTRATE
THEIR FAITH IN THE LOCAL PRODUCT.
LADIES AND GENTLEMEN,
I REGARD THIS PROJECT AS ONE OF NATIONAL SIGNIFICANCE, AND I
URGE AUSTRALIAN MANUFACTURERS TO SEIZE THE OPPORTUNITY TO
PARTICIPATE IN IT.