The cost involved in the failed first tender process for the National Broadband Network was "absolutely not" a waste of money, Communications Minister Stephen Conroy says.
The National Audit Office has found the failed tender process came at a significant cost to taxpayers and project proponents despite the government being made aware of key risks.
The opposition says the report shows Senator Conroy ignored increasing warnings that the tender process was failing.
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But when asked if the process was a waste of money after costing $17 million for taxpayers, Senator Conroy said, "Absolutely not."
"Let's be very clear. When we commenced the tendering process, the economy was booming and Telstra said they were participating," he told ABC radio.
Then the global financial crisis hit, he said.
"To quote, directly, page 78 of the auditor general's report 'the magnitude of the global financial crisis was largely unanticipated globally and heightened towards the latter stage of the process'."
The government always believed, that none of the existing tenders represented value for money.
"We then believed that we would find a solution," he said.
The government says companies involved in the process have no grounds to sue for compensation.
