Nga Pu who? Maori group is govt’s secret Crown fibre weapon

The Act Party is nakedly hostile to Crown fibre but it doesn't seem ultrafast broadband enthusiasts need to worry. The govenment has brokered a solution that's either creative and socially progressive, or an example of pork barrel politics, depending on your point of view.

I’ve previously written that the government needs the Maori Party to fall in behind to pass the Telecommunications Amendment Bill – the legislation that will allow the $1.35 billion ultrafast broadband project and the $300 million rural broadband initiative to go ahead (it allows for Telecom to split into two companies; for the Crown to buy into Telecom; and for Telecom to buy into lines and fibre companies that nominally “win” one of the 33 Crown fibre regions).

Act MPs oppose bill
The reason is that National (with 58 MPs in the 122-member Parliament) needs the Maori Party because it can’t necessarily bank on Act’s five MPs backing the legislation (and the opinions of various madcap independents vary with the lunar cycles). Sir Roger Douglas opposes the bill (his many bon mots include: “When politics replace markets, which is what this bill does, investment projects often reduce wealth rather than enhance it,” as well as his assertions that the bill is a “legislative subsidy and that National is “selling the law”). Fellow Act MP Heather Roy is on his side.

Brash no fan of fibre, or spending govt money on it
The situation is keener now that Don Brash has become Act leader.

During the compilation of his Taskforce 2025 report, Dr Brash met Crown fibre advocates including entrepreneur Rod Drury, and (then) Telecommunications Users Association boss Ernie Newman.

In its first annual report, the taskforce compared the government’s ultrafast broadband project to the Think Big follies of the Muldoon era.

In its second, released in November last year, it comprehensively dismissed the $1.35 billion urban Crown fibre project (and its $300 million rural equivalent) as a policy that could help close the gap with Australia.

“It is not clear what problem this investment is solving,” said the Brash-led Taskforce.

Its report questioned if there was demand for fibre, whether consumers or the business sector would be willing to pay for fibre accounts, and whether there would be any productivity benefit. It found, “There is no evidence of spillover or other public benefits from this investment that would justify public investment by comparison with waiting until the private sector can build a business case to invest.”

Maori Party to the rescue
At first, it looked like Act’s hostility to Crown fibre didn’t matter.

Labour and the Greens gave the bill a hostile reception at its first reading, before Christmas, but the Maori Party lauded the legislation.

Te Tai Tonga MP Rahui Katene said her party was proud to support the legislation, adding the excruciatingly softball line that she wanted to ensure the successful implementation of the Government’s policy programme for the telecommunications sector.

As with many things between the Maori Party and National, there was an element of cupboard love.

Ms Katene said she thought that marae should be included in the rural broadband initiative, as suggested by one of the bidders, Torotoro Waea.

The Maori Party’s enthusiasm for Torotoro Waea helps explains why the hither-to unknown group made the final shortlist for the $300 million rural broadband project (along with Telecom and Vodafone, and Kordia-FX Networks-Woosh), despite the tender’s requirement that bidders be able to provide evidence that they were capable of supporting national infrastructure.

A Torotoro Waea spokesman would not even reveal who was in the consortium, but did offer that it included 24 members, including various iwi, and "industry partners.

NBR understands these partners included Kordia, Opto Networks – which has cross-ownership with FX Networks - and 2degrees. That is to say,Torotoro Waea actually had muscle behind it; essentially, it was an alternative take on the Kordia-FX-Woosh proposal, with iwi elements added.

Maori bid marginalised
Then it all went off the rails, at least from the Maori Party’s standpoint. The MED recommended the government go with the joint Telecom-Vodafone bid, and cabinet accepted that decision. Communications Minister Steven Joyce’s straight-faced praise for the iwi bid had, in the end, come to nothing.

Ta-da: Nga Pu Waea
But not to worry. This week, the government announced the formation of Nga Pu Waea, which will champion Maori rural broadband interests.

Maori Affairs Minister and Maori Party leader Pita Sharples said the new agency would advise on Maori interests and development opportunities in broadband and work to ensure marae, kohanga, kura, wananga, iwi runanga and Māori health and social service providers benefit from the rural broadband rollout.

 “As well as connections to the broadband networks that will be made available through the RBI, benefits could include training and employment for Māori as the network is built, business opportunities to leverage the RBI infrastructure and extend faster broadband services to other uses and communities.”

Communications minister Steven Joyce said seven Maori working in information technology had been appointed to Nga Pu Waea.

Bi-monthly meetings with Telecom, Vodafone
The new agency will meet with Telecom and Vodafone every two months.

Both these companies know which side their bread is buttered, and Telecom, in particular – with many contracts for the urban Crown fibre project still in the balance – is particularly focussed on keeping Mr Joyce onside. So NBR is guessing the bi-monthly meetings will be productive.

Already, there's been confirmation that a number of marae will get broadband under the $300 million roll-out: 44 will get DSL for the first time; 100 will gain access to existing fibre, or new fibre laid as part of the RBI. "Trade training programmes and employment opportunities for Maori through the RBI" are another Nga Pu Waea aim; so is the more nubulous "relationship brokerage" - which seems to boil down to land access issues (Mr Joyce has already identified access to private land as a key issue for Crown fibre across the board).

Extended to other ICT projects
Mr Joyce said that if Nga Pu Waea works for the rural broadband roll-out, then "we could consider extending its mandate to other ICT projects." (Read: the urban ultrafast broadband project).

It all reads much more like a Labour Party policy than something you would expect from a National Party Communications Minister - but then again, it's all about keeping the Maori Party on the blue side of the fence.

A little potential for mischief
Still, some scope for mischief-making remains. Nga Pu Waea's seven member include Anthony Royal, a director of the Hautaki Trust, a minority shareholder in 2degrees (the trust was brought on board for its radio spectrum).

Given 2degrees ardent opposition to the rural broadband initiative (which it sees as a vehicle for Telecom and Vodafone to extend their "duopoly", and putting a squeeze on celltowers), any demands put forward by Mr Royal could prove interesting.

THE NGA PU WAE WORKING GROUP 

The membership comprises representatives from Māori ICT interests, including te Huarahi Tika Trust, Te Pūtahi Paoho, and the Maori Economic Taskforce.

The members were appointed by the Minister of Maori Affairs and Maori Party leader Pita Sharples, in consultation with Minister of Communications Steven Joyce.

A rep for Steven Joyce's office told NBR that the group would be funded from the Maori Economic Taskforce's budget:

The seven members are:

1. Jeremy Gardiner
2. Daphne Luke
3. Mavis Mullins
4. Haami Piripi
5. Antony Royal
6. Tūwhakairiora Williams
7. Richard Orzecki