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Labour 'reserves right' to change Telecom's Crown fibre contract


Curran unmoved by Act attack.

NZPA and NBR staff
Tue, 21 Jun 2011

The Labour Party is standing by its opposition to the government's ultrafast broadband (UFB) bill despite calls of economic sabotage.

Labour has signalled it would review the government's broadband contracts and legislation if elected.

The government announced last month Telecom had won the contract to build nearly threequarters of the UFB, which the government would spend $1.35b on over a number of years.

ACT Party leader Don Brash yesterday said Labour's stance amounted to "wanton economic thuggery".

"The relevant businesses should be entitled to expect (the law) to be honoured and to proceed on the basis of it, free from the spectre of having the rug pulled from under them by political caprice and retrospective vandalism," he said.

Labour communications spokeswoman Clare Curran today said the party had signalled from the beginning that it was concerned about the way the UFB contract process was undertaken.

"We've opposed this legislation from the beginning, we think we're being honest with the public, we're being honest with Telecom that this is what they're looking at," she told Radio New Zealand.

She rejected the stance would deter potential investors.

"What it means is that they're going into this contract with their eyes open knowing that a Labour government will review the contract, and they will review the legislation and that we may make changes," Ms Curran said.

"We reserve the right to repeal parts of the legislation that we think is anticompetitive and we will also reserve the right to change the contracts.

"We're not saying we will do that, but we do reserve the right to do it."

Ms Curran said Labour wanted ultrafast broadband but was concerned that what would be delivered was not what was being promised.

Labour would not support a deal that would not provide competitive services down the track.

NZPA and NBR staff
Tue, 21 Jun 2011
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Labour 'reserves right' to change Telecom's Crown fibre contract
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