Labor insists the rollout of the National Broadband Network in Western Australia and South Australia will still be on time and on budget, despite construction partner Syntheo walking away from the project.
As Prime Minister Kevin Rudd was extolling the virtues of the NBN in his own Brisbane electorate, the news Syntheo would not extend its contract with NBN Co put the delivery of the multi-billion dollar broadband network in other parts of the country into some doubt.
However, deputy PM and infrastructure minister Anthony Albanese said the end of the Syntheo contracts was not a big blow to the bigger picture.
"It is not a setback at all, this is normal business practice," Mr Albanese told Fairfax radio.
"The rollout is on schedule, and in terms of cost it is on schedule as well. More than 200,000 homes and business have been passed, which was the target by June 30 this year."
Syntheo, a joint venture between Service Stream and Lend Lease, said it would complete construction work currently underway.
But it has been reported that onerous conditions in the NBN agreements, which required Syntheo to take on more risk, have frustrated the company.
Malcolm Turnbull, the Opposition's NBN guru, said Syntheo's decision heaped more chaos on the NBN project.
"How can you possibly say everything is going well when every target they have missed, and missed by a mile?" Mr Turnbull said.
"This is a catastrophically mismanaged project, and you really have to worry about a minister who is so detached from reality. He seems to be in denial."
But Mr Albanese said the largest infrastructure projects in Australia's history was never guaranteed to go without a hitch.
"You expect it not to be smooth at all times," Mr Albanese said.
"It won't delay it and it won't push up the price."
