1. MARYAN STREET (Labour) Link to this
to the Minister of Communications
What is the Government doing to make faster, cheaper broadband available to all New Zealanders?
Hon DAVID CUNLIFFE (Minister of Communications) Link to this
The Government has announced a package of measures to increase competition in broadband markets. The measures include unbundling the local loop, full bitstream unbundling, information disclosure and accounting separation to promote transparency, encouraging investment in alternative infrastructure, and a rural package that recognises the needs of the rural community.
Hon DAVID CUNLIFFE Link to this
I have received a large number of positive reports. A very recent one was from the OECD. It says: “The decision by the New Zealand Government to unbundle the local loop opens the door to more competition in the New Zealand broadband market.” Another quote, from the president of InternetNZ, says: “These decisions open the playing field for industry competitors to show their commitment to New Zealand consumers by investing in new infrastructure and services.”
Hon Maurice Williamson Link to this
Can the Minister give the House an assurance that this move, which was announced hurriedly last night, will now act as a guarantee so that this country can meet the targets he published in his digital strategy, and those are that New Zealand is to be in the top half of the OECD by next year, and in the top quartile of the OECD by 2010?
Hon DAVID CUNLIFFE Link to this
For the second time today, I suggest the Opposition spokesman read the Cabinet paper that is on the website.
Madam SPEAKERHon DAVID CUNLIFFE Link to this
With the benefit of further research and the inclusion of advanced broadband services within the target, it is now considered appropriate that we achieve the top half of the OECD by 2010, and the top quarter by 2015.
Rt Hon Winston Peters Link to this
Has the Minister seen any other reports of attempts to open up the telecommunications market, and has he seen any reports as to what happened to those very worthy endeavours?
Hon DAVID CUNLIFFE Link to this
I have a statement from 20 May 1998 made by the then Deputy Prime Minister and Treasurer, the Rt Hon Winston Peters, where he calls for a review of the adequacy of competition in the telecommunications industry leading to the types of measures that were announced yesterday. That review was quashed by the then National Government.
Keith LockeDoes the Minister agree with the need to regulate the Internet service provider access price to the unbundled loop, to prevent Telecom from overcharging competing internet service providers; if so, how does the process of regulating access pricing work?
Hon DAVID CUNLIFFE Link to this
Access pricing principles will be legislated for and applied by the Telecommunications Commissioner, to ensure there is a fair balance between the legitimate interests of the incumbent to earn a fair return and the access needs of entrants into the telecommunications market.
Rt Hon Winston Peters Link to this
Has the Minister seen a Treasury report of 1998, commissioned by yours truly, that recommended an opening up of competition in telecommunications, which then was promptly squashed by the National Government?
Hon DAVID CUNLIFFE Link to this
I have not had the opportunity to review that document and I welcome the Minister tabling it, but it does fit with one’s assessment of National’s lack of policy—it has not changed in 20 years.
How does the Minister plan to avoid the kind of excessive and drawn-out litigation processes that have accompanied the unbundling of some local loops overseas, which have resulted in years of stalling manoeuvres?
Hon DAVID CUNLIFFE Link to this
This is a legislative process and not a judicially reviewable one. Legislative amendments already announced are designed to improve the speed and decisiveness of the regulatory process by the Commerce Commission.
Rt Hon Winston Peters Link to this
Has the Minister seen, firstly, the Treasury report recommending deregulation of all telecommunications in this country, secondly, a speech made by myself in late July of 1998 making that recommendation, and, thirdly, the apoplectic reaction from Maurice Williamson when he found out his mates were going to be exposed to true competition?
Hon DAVID CUNLIFFE Link to this
The speech concerned is on my reading list, and indeed I have heard that characterisation of the Hon Maurice Williamson before.
Gerry BrownleeI raise a point of order, Madam Speaker. We have heard a very interesting exchange between the Minister and the New Zealand First leader. I wonder whether the Minister would be prepared to take a minute of the House’s time to explain that perhaps this telecommunications package is just part of Winston’s dowry.
Rt Hon Winston Peters Link to this
I seek leave to table the Treasury recommendation, after months of hard work on its part, and also the speech that drove Maurice Williamson to a state of apoplexy because Telecom, which had been funding the National Party, was about to be exposed to competition.
Hon DAVID CUNLIFFE Link to this
I seek leave to table recent statements on New Zealand by the OECD, and also the press release from May 1998 by the then Treasurer.
Hon Maurice Williamson Link to this
I seek leave to table page 29 of the Government’s National Digital Strategy, in which it sets the top half of the OECD by next year and the top quarter by 2010 as its targets.