Steven Joyce forced into massive back-down on Telco Bill

Steven Joyce has ditched the controversial anti-competitive regulatory holiday in his broadband Bill for what appears to be an even worse stitched together last minute compromise that has been forced on him by the Maori Party, says Labour’s communications and IT spokesperson Clare Curran.

“The government’s much vaunted broadband scheme is in tatters. Steven Joyce has been forced into a hugely embarrassing back-down.

“If that wasn’t bad enough, it now appears that the compromise solution demanded by the Māori Party in return for its support could be worse than the original proposed.

“The only good thing about today’s announcement is that takes away the secrecy of price setting for the UFB and makes it more transparent.

“The compromise allows the Commerce Commission to regulate pricing on fibre, but if the Commission believes prices should go lower at some point, then Steven Joyce says it’s the Government that should wear the risk not the consumer. And he gets to make the decision on whether to regulate.

“Why would the Minister ever agree to regulate if it’s going to cost the Crown? And what is the nature of the compensation being promised to the contractor rolling out broadband?

“This effectively insulates the contractor from any risk and sets a dangerous precedent in terms of the Commerce Commission’s ability to fairly regulate.

“Questions also need to be asked about just what the Māori Party are getting out of the deal. What are they getting in return for rescuing National’s troubled broadband bill?

“This is a last minute compromise forced on the Government by its political ally. It is policy-making on the hoof and is a huge embarrassment for Steven Joyce and the Government.

“This policy is too important to be rushed through at the last minute via backroom political deals. It should have been dealt with through the select committee process with considered input from the industry, so all political parties could buy in and create an enduring policy that works for the industry and consumers.

“Labour will examine closely the detail of this last minute policy change, but remains opposed to the Bill,” Clare Curran said