Greens welcome broadband back down

National’s back down over the Ultrafast Broadband Bill is a win for New Zealanders but new public-private partnership provisions could cost taxpayers, says Green Party MP Gareth Hughes.

“This is a major back-flip for Steven Joyce. It continues his track-record of poor process and haste on this Bill,” he said.

“It’s also disappointing that the Select Committee wasn’t able to discuss this significant change because the Minister was so intransigent on the regulatory ‘holiday’.”

Proposed changes to the legislation would require the Government to pick up the tab, in place of the private partner, if the Commerce Commission regulated a lower price for broadband use. This proposal would give private investors the confidence needed to commit themselves to the project, but it is as yet unclear what it might mean for the taxpayer and wider industry.

Mr Hughes, the Green Party technology spokesperson, said he was also sceptical about whether the Government would be able to deliver New Zealand communities ultra-fast broadband within its stated $1.35 billion budget.

“Unregulated monopolies, especially in critical industries like telecommunications, undermine the competitiveness of the New Zealand economy and deliver poorer services.”

He said better broadband was essential for New Zealand’s future and the Green Party supported the Government’s objective to increase broadband coverage and services available in both urban and rural environments. However, the party could not support the previously proposed 10 year regulatory ‘holiday’ because of the lack of adequate Government investment to achieve its own coverage aims.

The Green Party will look at the changes in detail before deciding whether to support the Bill.