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Labour wrong on National's broadband plan

John Key

Wednesday 23 April 2008, 2:32PM

By John Key

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National Party Leader John Key says Labour is misleading the public with its false claims about National's plan to invest up to $1.5 billion to drive an ultra-fast "fibre to the home" broadband network.

"Labour claims this is an extravagant subsidy for Telecom. They are wrong.

"In my speech I said one of the principles guiding the government's investment would be that it doesn't line the pockets of incumbent players. We also want to ensure open access to the network.

"It's Labour's endorsement of cabinetisation that's at greater risk of ensuring a monopoly. National's plan will involve a number of private players, and will ensure open access.

"Our plan will lift productivity and average incomes in New Zealand - and that's the bottom line. Labour's plan appears to be just to give up because it's all 'simply too challenging'.

"Our plan is a core part of National's ambition to achieve a step change in New Zealand's economy and lift incomes relative to other countries like Australia.

"Competition over fibre is no different to competition over copper – which is exactly what Labour wants to do. Labour's wish is also fibre to the home, but their idea is to have it decades from now and not in the six years we aim for.

"Labour has no intention of delivering a high-speed fibre network, with all the productivity and other benefits it will offer to New Zealand, any time soon.

"National is about the future of New Zealand. Labour is about looking backwards."