Qualified support for industry broadband solution if it benefits consumers

Labour today announced qualified support for a compromise solution suggested by the telecommunication industry to the impasse over the Government’s controversial broadband scheme, says Labour’s Communications and IT spokesperson Clare Curran.

“Labour will examine the proposed solution in detail, but supports any added protection for New Zealand consumers and fair pricing for access to our newest network,” Clare Curran said.

“We ask the Minister to consider the telecommunication industry’s request for an Australian-style special access undertakings approach. This approach would replace the anti-competitive regulatory holiday and bring Commerce Commission oversight back to oversee ultrafast broadband prices and services.

“Labour will continue to oppose the 10 year regulatory holiday period proposed in the Government’s new telco Bill and will review it and possibly repeal it should we be elected at the end of this year.

“We have also called for decisions on both the urban and rural broadband schemes to be halted and an independent international review of the Government’s broadband deals to be undertaken urgently following serious conflict of interest allegations against its top adviser on broadband.

“Bruce Parkes, the man responsible for designing the Government’s broadband scheme, is at the centre of anti-competitive findings against Telecom which saw the company fined $12 million in the High Court this week.

“Last week Communications Minister Steven Joyce dismissed concerns of conflict of interest on the matter. This is hardly reassuring to the public that taxpayer money is being spent with their interests at heart.

“Ultrafast broadband is the most significant infrastructure investment decision that Kiwi’s will make this generation.

“Steven Joyce is trying to hurry through a deal that is not in the best interests of New Zealand before the next election in order to fulfil John Key’s 2008 election promise to provide ultrafast broadband to 75% of New Zealanders.

“You can’t rip off New Zealanders in order to appear to fulfil an empty election promise,” Clare Curran said.