Labour will repeal key parts of broadband bill

Labour will vote against National’s broadband bill and in Government would repeal sections of it that we believe will have an anti-competitive effect on the telecommunications industry to the detriment of consumers, says Labour’s spokesperson for Communications and IT, Clare Curran.

“A Labour Government will repeal the regulatory forbearance period and undertake an immediate review of the ultrafast and rural broadband schemes,” Clare Curran said.

“Labour believes the Bill is deeply flawed and allows anti-competitive behaviour to the detriment of consumers. It blocks the influence of an independent regulator, and would result in steeper prices for New Zealanders.

“The Minister has revealed that it would cost the Crown an extra $400m to $600m to build the UFB network without a controversial "regulatory holiday". So who will foot the bill? The answer is Kiwi consumers.

“Steven Joyce’s new law delivers a sweetheart deal to Telecom which allows them to gouge profit at the expense of New Zealanders.

“This new law will put up the cost of new and existing broadband to New Zealanders and will discourage competition. The regulatory ‘forbearance period’ (or ‘regulatory holiday’) will lock out the Commerce Commission from regulating broadband prices and access until 31 December 2019.

“The Government (through Crown Fibre Holdings) will act as both an investor and a quasi-regulator of the new fibre network. This creates a serious conflict of interest as Crown Fibre Holdings will be regulating its own investment.

“Crown Fibre Holdings lacks the independence and specialist skills to undertake such a task,” Clare Curran said.

“Providing a regulatory subsidy to the powerful incumbent is likely to halt investment from other parties not awarded the main contract. The focus should be to lift the industry as a whole. Labour supports the need to improve New Zealand’s telecommunications infrastructure to encourage productivity, innovation and export led growth.

“A strong pro-competitive regulatory framework remains essential to ensure good market outcomes and high levels of investment across the industry. Should we win government, Labour will ensure broadband is truly competitive and affordable for all New Zealanders.