Labour begrudgingly supported the government's telecommunications bill through Parliament this morning but warned that changes are needed to protect and give certainty to consumers.The Telecommunications (TSO, Broadband, and Other Matters) Amendment
Labour begrudgingly supported the government’s telecommunications bill through Parliament this morning but warned that changes are needed to protect and give certainty to consumers.
The Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill focuses on law changes necessary to facilitate the government’s $300m rural broadband initiative (RBI) and $1.35 billion ultrafast broadband (UFB) initiative.
It notes that further amendments may be needed, including law changes to facilitate the break-up of Telecom, should the company win an urban Crown fibre tender.
The latter prospect is looking less likely after Northpower and Ultra Fast Fibre scooped 16% of the total area covered by the UFB initiative this week.
The amendment bill also reforms the telecommunications services obligations (TSO) framework, including through the introduction of a new telecommunications development levy (TDL) on industry.
“The bill will ensure that the TSO operates fairly, transparently, and effectively – with reduced cost of compliance for the sector,” Mr Joyce said in a release today.
Labour’s support for the bill’s first reading came with “strong reservations”, in particular the bill’s proposed 10-year holiday from regulatory oversight for UFB participants, spokeswoman Clare Curran said today.
“We haven’t seen any of the reasoning of it as to why it’s so important,” Ms Curran told NBR. “Have investors said they won’t invest unless they have some sort of regulatory forbearance period?"
“Our concern has always been the high level of secrecy and closed door backroom discussion on this issue, with the use of taxpayer money, and the use of commercial sensitivity to prevent any public discussion and debate.”
Labour is supporting the bill to select committee so debate can occur, she said.
She is concerned about the potential for supplementary order papers dealing with Telecom's separation to be added to the legislation and pushed through at speed without due consideration of implications for consumers.
Mr Joyce has been unable to guarantee that the UFB agreements will be finalised before next year’s election, “an indictment on Steven Joyce and the cumbersome, overcomplex and unworkable nature of his broadband scheme”, Ms Curran said.
The telecommunications amendment bill has been dispatched to the finance and expenditure committee with a report due back to government by 6 May 2011.
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