Rural Kiwis Paying Price for Chorus Decision

new-zealand-first-party

Wed Dec 16 2015 13:00:00 GMT+1300 (New Zealand Daylight Time)

Rural Kiwis Paying Price for Chorus Decision

Wednesday, 16 December 2015, 12:23 pm
Press Release: New Zealand First Party

16 DECEMBER 2015

Rural Kiwis will get hit hardest by the Commerce Commission’s decision allowing Chorus to charge its regulated copper line customers almost $8 a month more than New Zealand retail broadband providers, says New Zealand First.

“It’s disgraceful that government under investment forces Chorus to raid the wallets of hard-pressed Kiwis as government approved corporate welfare,,” says Communications Spokesperson Tracey Martin.

“It’s unfair on the majority of New Zealanders who are still dependent on copper and live in rural areas.

“Take Northland, for example - another $96 a year for a line is on top of the $300-plus increase in power prices wanted by Transpower that we also oppose. Taken together it represents two days’ worth of wages for the median wage and salary earner there.

“Some commentators say this will encourage more people to take up fibre. This is not an option for thousands of rural Kiwis who will be unable to access fibre for some considerable time.

“National effectively created Chorus as a listed company in 2011 off the back of its so-called Ultra Fast Broadband project. That ran into serious regulatory issues last year so it is the government who has over promised and under delivered.

“If Chorus used some of its new found corporate welfare to upgrade the remaining 200-plus copper cabinets in Northland to regain usable speeds, copper clients night not feel quite so ripped off,” says Mrs Martin.

New Zealand First led the charge in November 2013 when the National Government looked set to override the Commerce Commission’s recommendation to lower copper broadband prices.

ENDS

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