National broadband network in doubt

Independent senator Nick Xenophon admits he is in a Mexican standoff with the Federal Government over its national broadband network (NBN).

Labor has three days to secure Xenophon's support for legislation that imposes a structural separation on Telstra and paves the way for the telco's participation in the NBN.

The Government on Monday night moved to win over Xenophon and other independents by announcing it would ask a parliamentary committee to examine the economic and social benefits of the A$43 billion project.

That's not good enough for the senator, who is demanding the Government release the NBN business plan before a Senate vote this week.

"The Government knows how serious I am about this," he told ABC Radio yesterday.

Xenophon said the Government was still talking to him about a way to break the impasse.

"But at the moment, it's still pretty much a Mexican standoff."

Labor needs the vote of Xenophon, the Australian Greens and Family First's Steve Fielding to overcome opposition in the Senate. The Greens are backing the NBN on the proviso its privatisation has to be approved by Parliament, while Fielding has yet to reveal which way he will vote.

As the wrangling continues, Treasurer Wayne Swan confirmed the Government had hired external corporate advisers to test the assumptions underpinning the NBN business case.

He described the move as "normal commercial practice".

The finance department has commissioned corporate advisers Greenhill Caliburn to review the robustness of the 30-year business plan and the 2011 corporate plan of the company tasked with rolling out the network, NBN Co.

"It's just common sense ... At every stage of the development of the NBN we have sought external advice," Swan told ABC Radio.

The Treasurer refused to say whether he had read the NBN business plan, adopting a position similar to that of Prime Minister Julia Gillard in question time on Monday.

Swan said the plan was still going through critical Cabinet discussions and would not be released until next month, after Parliament has risen for the long summer break.

He would not speculate about the possibility of Parliament being recalled after the plan's release, a move flagged by Xenophon.

- AAP