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Telecom Regulation "Big Step Backwards"

Telecom Regulation "Big Step Backwards" For Free Enterprise

Rodney Hide Wednesday, 3 May 2006 Press Releases - Commerce

Today's announcement from the Government that Telecom's local loop will be unbundled has been slammed by ACT Leader Rodney Hide as a big step backwards for free markets and private enterprise.

"This decision is not about allowing competition, it's about government forcing a private company to open their network to competitors", Mr Hide said.

"Labour has absolutely no respect for private property rights.

"Instead of creating an alternative network, a group of companies have pressured Ministers to let them leech off Telecom's lines.

"As well as Telecom, the losers from this evening's announcement will be those companies which have built their own networks, including TelstraClear, Citylink, Woosh, Wired Country, Enternet and Airnet.

"This sends a chilling message to any company wishing to invest in infrastructure - Government will regulate and control you, unless you do what politicians say.

"Labour has shown its true colours - and a socialist desire to interfere elbow-deep in private enterprise.

"Telecom is one of New Zealand's most successful companies. Politicians should stick to their role of governance, and let businesspeople run their businesses.

"Who knows which company Labour will whack next.

"Government's forced unbundling of the local loop is a big step backwards for private enterprise and free markets", Mr Hide said.

ENDS

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