Government back-down on broadband confirmed

new-zealand-labour-party

Wed May 06 2009 12:00:00 GMT+1200 (New Zealand Standard Time)

Government back-down on broadband confirmed

Wednesday, 6 May 2009, 3:59 pm
Press Release: New Zealand Labour Party

Clare Curran
Spokesperson for Communication and IT

6 May 2009 Media Statement

Communications and IT Minister Steven Joyce today confirmed that his government has backed away from his government’s election pledge to provide ultrafast broadband to 75% of New Zealand homes, Labour Communications and IT spokesperson Clare Curran said.

Mr Joyce today confirmed in Parliament that the government could not pay for broadband to be connected into people’s homes. This leaves families to cover the shortfall of thousands of dollars.

“It also leaves the Government with a major piece of policy which could become a big white elephant,” Clare Curran said. “How many families will be able to afford hundreds of dollars to connect to faster broadband, let alone thousands of dollars?”

“This is a major about-face by the National Government which used the broadband pledge as a centrepiece of its election campaign and promised to deliver ultrafast broadband fibre into 75% of New Zealand homes within 10 years. It’s a broken promise,” Clare Curran said

“It has since been revealed in a Treasury commissioned report that the $1.5 billion promised by the Government and to matched by a $1.5 billion investment from the private sector would not pay for connections into people’s homes.

“Yet as recently as April, Prime Minister John Key claimed in his monthly newsletter to deliver $1.5 billion ultrafast broadband to where people “work, live or study”.

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“Last week in response to a question on this issue Minister Joyce shifted the goalposts on the Government’s election promise by saying its goal was to provide “availability” of ultra fast broadband, to 75% of homes.

“Today he was asked whether his definition of “availability” meant families had to bear thousands of dollars in costs to connect ultra fast broadband to their homes.

“He replied that these matters were still to be determined. Shouldn’t the Government have costed out its promise before the election? New Zealand families expect that they will get ultrafast broadband, not only into their streets, but into their homes.”

“Last week, Labour revealed that New Zealanders face an extra cost of between $2000 and $4000 per household to connect to an ultra-fast broadband network despite the.

“The Treasury Report by Murray Milner warned that it will cost between $5.3 billion and $10.4 billion to connect 75 percent of New Zealand homes with ultrafast broadband.

“The National Government will either have to scale down its promise to provide broadband to homes, or increase expenditure well above the promised $1.5b.

“Mr Joyce is caught in a difficult position as he will have a hard job to convince Cabinet to increase spending at this time of economic recession. If he doesn’t, then the Government will not be able to deliver on its election promise.

“Pretending it’s not an issue is no longer an option. The telecommunications industry is well aware of this issue and the Minister knows it,” Clare Curran said.

ENDS

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