7. ALLAN PEACHEY (National—Tāmaki) Link to this
to the Minister for Communications and Information Technology
What steps has the Government taken today to advance ultra-fast broadband in New Zealand?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
This morning I announced the Government’s proposed investment model that will help deliver ultra-fast broadband around New Zealand. This roll-out will enable schools, health services, businesses, and households to take advantage of new and quickly developing technologies that will improve productivity and help grow our economy. Under our proposal, the Crown will invest up to $1.5 billion alongside private sector co-investors and regional fibre companies that will deploy and provide access to fibre-optic network infrastructure in towns and cities throughout New Zealand.
Why is this particular model of co-investment preferred over other models that the Government considered?
The Government considered a range of models but selected this one because it allows flexibility to provide regional solutions whilst meeting the Government’s clearly laid out principles regarding economic growth, not substituting private investment, not lining the pockets of existing providers, avoiding duplication, not preserving legacy assets, and assuring affordable broadband services. An investment model allows both the Government and taxpayers to maintain an ongoing interest and obtain a return over time, as opposed to the Government simply providing grants with no ongoing relationship.
Clare CurranCan the Minister confirm that by shifting from its pre-election policy of a single, regulated, utility model for delivering broadband to one that is regional, open, contestable, and technology-neutral, National has adopted Labour’s broadband investment policy framework; if this is true, why did National not campaign for that rather than the opposite?
There are a number of differences between the model we have adopted and the previous Government’s Broadband Investment Fund. The first one is that this model is an investment, unlike the so-called Broadband Investment Fund, which was a grant; this model is directed at fibre technology, whereas the previous Government’s model was a range of technologies; and this model is quite significantly larger than the one the previous Government planned.
The Government is proposing to establish a Crown-owned investment company to drive the Government’s investment. It will be up to this company to decide whom to invest alongside in each town and city, bearing in mind the Government’s objectives and principles.
Why is the Government setting its sights so low for private sector investment by requiring only $1 from the private sector for every dollar from its $1.5 billion investment, when Labour would have required up to double that? Is that not selling the project short, and should New Zealanders not be wondering whether they are getting the best bang for their buck?