New telco commissioner's appointment 'may be illegal' – Curran
Labour asks auditor-general to investigate. UPDATED with response from ICT Minister Amy Adams.
Labour asks auditor-general to investigate. UPDATED with response from ICT Minister Amy Adams.
The government’s decision not to re-appoint Dr Ross Patterson as Telecommunications Commissioner "may be illegal", Labour’s communications and IT spokewoman Clare Curran said today.
“It is my understanding that the appointment of his successor, Stephen Gale, may have breached public sector requirements, specifically around the appointment process and description of the appointment.
"To that effect, I will today request that the auditor-general investigate this appointment,” Ms Curran said.
No mention of incumbent seeking re-appointment
Earlier, Telecommunications Users' Association CEO Paul Brislen questioned the MED had advertised the role without mentioning that Dr Patterson was seeking re-appointment – the usual practice when an incumbent is seeking another term in such a position.
The Commerce Commission confirmed to NBR on March 30 that Dr Patterson had applied for a second five-year term.
Ms Curran maintains the government has a conflict of interest in the $1.35 billion commitment to ultrafast broadband, in that it is both an investor and setting the rules – underlining the importanance of an independent telecommunications commissioner.
“When an important decision such as this is made by government, it has a statutory responsibility to ensure it has followed correct process and provided applicants with appropriate information, Ms Curran said.
"This does not appear to have been the case in this appointment."
Adams: no dice
This morning, ICT minister Amy Adams said Stephen Gale had been chosen as the new commissioner.
This afternoon, a spokesman for her office dismmised Ms Curran's claim, telling NBR ONLINE: "The appointment process for the new telecommunications commissioner is consistent with the State Services Commission’s Board Appointment and Induction Guidelines and complies with the requirements for appointment under the Commerce Act 1986, the Telecommunications Act 2001, and the Crown Entities Act 2004.
"The act requires the governor-general to appoint a telecommunications commissioner on recommendation of the minister, so the government is required to make the decision. The recommendation for appointment was based on the advice of an independent selection panel."
There were 44 applicants for the role.
The new commissioner
Dr Gale, an associate commissioner at the Commerce Commission since July 2010 and formerly with regulatory consultancy Castalia, takes over on July 12.
Castalia gained noteriety in 2009 when one of its directors penned a report stating that copper networks could provide enough bandwidth for years to come.
There would not be enough demand to make fibre-to-the-premise economic under the government's ultrafast broadband scheme, Castalia maintained.
Dr Gales' official Commerce Commission bio says he "has worked on a variety of competition topics including the design of the electricity market, radio spectrum auctions and port pricing".
"He has advised on mergers in a variety of sectors, including forestry, supermarkets, newspapers, dairy products, ready mix concrete, farming hardware, building materials and snack foods."
A major government of 4G-friendly 700MHz spectrum – freed up by the digital TV switchover – is due to take place later this year or early next year.
The telecommunications commissioner works within the Commerce Commission, working as an industry watchdog and helping to formulate policy that is recommended to the ICT minister (read the MED's position description here. The MED is now part of the new Ministry of Business, Innovation and Employment).