Govt plunges NZ’s digital future into uncertainty
new-zealand-labour-party
Thu Feb 05 2009 13:00:00 GMT+1300 (New Zealand Daylight Time)
Govt plunges NZ’s digital future into uncertainty
Thursday, 5 February 2009, 4:21 pm
Press Release: New Zealand Labour Party
5 February 2009 Media Statement
National Govt plunges NZ’s digital future into uncertainty
Labour spokesperson for communications and IT Clare Curran today described as gut wrenching and wrong the National Government decisions to axe the Broadband Investment Fund (BIF) and the Digital Development Council.
“Today the National Government achieved two things in the strategically important area of digital technology,” she said.
“Both have sent the industry tumbling backwards into uncertainty at a time when confidence, investment in regional growth and smart, innovative digital solutions should be at the forefront of an economic growth strategy.
“Firstly, they silenced one of the key industry voices, the Digital Development Council, preferring instead to discuss matters one on one with self interested individual organisations rather than a body which has the interests of the industry as a whole at heart.
“Secondly, dozens of innovative broadband projects poised to deliver fast broadband services to communities across New Zealand have been cast aside in an extraordinary backward step for our digital industry,” said Clare Curran
“All of this in the context of no demonstrable plan to roll out National’s promised $1.5 billion fibre broadband network covering 75% of New Zealanders within six years.
“Indeed, today’s decision to scrap the Broadband Investment Fund is the clearest signal the National Government could give that it intends to spend its $1.5bn in a costly gift to an existing major telco, instead of letting the diverse needs of local communities drive the investment where it could do most good.
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And earlier this week, National scrapped the Government Shared Network (GSN) a major piece of the information communication technology infrastructure developed by the previous Labour Government.
“This is worse than a slow start. It’s a kick in the teeth to the New Zealand’s digital strategy which was considered world class and which had contestability and transparency as its base principles, along with a commitment to encouraging regional investment through local utilities.
Ditching the DDC is an equally retrograde step as its intention was to help New Zealand to become a world leader in ICT use and had the widespread support of the industry.
The Minister’s claim that he prefers to speak to the various parties directly is extraordinary and extremely worrying as there is now no industry vehicle for user organisations in New Zealand. The remaining industry group, ICT-NZ represents industry providers and is not a voice for user organisations.
“The most optimistic view is that the National Government is seeking to re-badge a digital strategy away from Labour and will choose to listen to the industry widely and maintain a contestable and transparent approach that encourages regional projects” Curran says.
“The worst case scenario is that the soundly based digital strategy developed with widespread industry buy-in, which was poised to deliver value in numerous regions, will be ditched wholesale in favour of another, yet to be revealed approach.
“There has not been one single piece of paper produced by this Government to date which provides any light on what that approach might be,” said Clare Curran.
ENDS
Background
The Broadband Investment Fund (BIF) is a $340 million fund set up in 2008 to accelerate broadband to promote industry investment in New Zealand’s broadband infrastructure. It provides a pool of contestable funding for a major plan to increase New Zealander’s access to high speed internet.
The BIF contains $325 million operating and $15 million capital funding available over a maximum of five years, and focuses on three critical areas:
1. facilitating high speed broadband to businesses and entities such as municipalities, universities, schools and hospitals in urban centres;
2. extending the reach of broadband into underserved regions; and
3. improving the resilience of New Zealand’s international connections.
There were 36 proposals for broadband projects in communities across New Zealand worth several hundred million dollars with funding applications due to be funded through the BIF in February.
They spanned the country from Hobsonville, Coromandel Peninsula, Whanganui, Palmerston North, Hawke’s Bay, to Tasman, Marlborough, Nelson, North Canterbury and Otago.
They included fibre to the home projects for new communities, existing cities and rural areas. Ms Curran said the projects and the proposed method of delivery received widespread support and encouragement from the wider communications technology industry.
ENDS
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