Broadband bill could become 'polticial football'

Communications Minister Steven Joyce has ruled out more time for submissions on a broadband Bill that network company Vector says will become "a political football".

Telcos and user groups have expressed concern with the speed at which the Government was pushing through the Telecommunications Amendment Bill, which deals with the Government's Ultrafast Broadband plan.

Public submissions on the bill began today with Vector chief executive Simon Mackenzie expressing concern over an amendment introduced last month that he said would be "a free pass for Telecom in terms of competition law".

The amendment would allow Telecom to split into two separately listed companies, which could hurt Vector's bid against Telecom to roll out the Ultrafast Broadband initiative in Auckland.

Mr Mackenzie said the amendment bestowed significant market and competition benefits to Telecom when it did not need to.

"If Telecom sees separation as an issue for its bid, then surely that is Telecom's issue," he told Parliament's finance and expenditure select committee today.

"The Government should not feel beholden to Telecom to remove those impediments. They need to make their own commercial decisions as everyone else does.

"Nowhere in the Government's competitive process for the Ultrafast Broadband initiative is there a requirement for Telecom to separate."

Mr Mackenzie also cautioned against the Bill being rushed through.

"We're dealing here with major regulatory reform which should be built within a robust and transparent clear framework. Unfortunately we see absolutely no evidence of such a framework," he said.

"Fundamental and transformational infrastructure such as this should not be set up to be a political football in years to come.

"Simply put, if it is rushed through we have no doubt that this would lead to ongoing market and regulatory uncertainty."

Mr Joyce today defended the time devoted to the Bill.

Asked by Labour finance spokesman David Cunliffe whether he would extend the date for reporting back on the Bill, Mr Joyce told Parliament he did not think that was necessary.

The select committee had until May 16 to report back on the bill, which was about six months since it was introduced.

Mr Joyce added that many of the issues relating to Telecom's split had been canvassed in a discussion document released in September.

He dismissed claims that submitters had only 10 minutes to present their views to the select committee, noting that Vector was allowed 40 minutes today.

 

 

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