Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Telecomm's Decision Damaging to Investment, Growth

Telecommunications Decision Damaging to Investment and Growth

“The government’s plans to further regulate telecommunications would violate private property rights and devalue the assets of tens of thousands of shareholders”, Roger Kerr, executive director of the New Zealand Business Roundtable said today.

“Measures like forced unbundling have been described as infrastructure socialism (“what’s yours is mine”, by government decree). By allowing competitors access to incumbents’ networks on non-commercial terms, the short-term competition they create is parasitical, not the dynamic competition we need from incentives to invest in new and enhanced infrastructure.

“Overseas experience suggests that such regulation gives rise to endless wrangling and modifications of detailed rules, which developments in technology rapidly make even more distorting or redundant.

“No publicly available analysis has been presented to justify such action. Indeed it runs counter to the revised advice of the Telecommunications Commissioner after an exhaustive process of inquiry. Such regulatory decisions should be made only on the basis of an open and transparent process, which includes consideration of compensation for regulatory takings of private property rights.”

Mr Kerr said much myth-making and special interest lobbying surrounded the debate about broadband. Special interests accounted for much similar regulation in other OECD countries, just as they did for farm subsidies. Academic research had shown that New Zealand’s performance on broadband was not out of line with other countries with similar per capita incomes.

“Unless the government can establish a much firmer justification for its decision in a regulatory impact statement accompanying any legislation, parliament should throw it out”, Mr Kerr said.

“Such arbitrary decision-making can only chill investment in a rapidly changing industry, damage the long-term interests of telecommunications users, add to the growing burden of regulation that is slowing New Zealand’s growth rate, and raise regulatory risks for all businesses operating in New Zealand.”

4 May 2006


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>


  • Bill Bennett on Tech