National's "Think Big" Planned Chaos

ACT Leader Rodney Hide today called on John Key to explain the funding rules and regulatory framework for his promise to spend $1.5 billion of taxpayer's money on National's "Fibre to the Home" policy.

"The lack of detail will stall investment because the industry doesn't know the rules or how the funding is going to be delivered. Who will invest now, when National is promising one or other company a $1.5 billion investment subsidy?" asked Mr Hide.

"John Key's announcement has created huge uncertainty for investors in telecommunications and thrown their business cases and plans into disarray. Telecommunications has suffered hugely from government-induced risk and an uncertain regulatory environment. National has thrown the existing regulatory framework back into chaos.

It's 'Think Big' all over again, with John Key 'picking winners' in an industry remarkable for its innovation. He has set an arbitrary goal of 75 percent "Fibre to the Home" by 2014 with no analysis of the costs and benefits of the policy. And it's a backward step for competition in the industry as the $1.5 billion subsidy will deliver a state-sponsored monopoly.

"To keep New Zealand moving forward John Key must provide certainty to the industry and immediately release the details of his policy so New Zealanders won't be faced with more years of stunted development as they wait for the detail of just how National's policy is to work,"
said Mr Hide.