18 May 2006

Consider Electricity Reforms Before Splitting Telecom – New Zealand First

New Zealand First telecommunications spokesperson, Hon Brian Donnelly, is warning the government to be informed by the vast gap between the theoretical and the actual outcomes of Max Bradford’s electricity reforms before it proceeds with any structural separation of Telecom as suggested in the budget speech of Michael Cullen.

“It is absolutely clear that there is a desperate need for regulatory intervention in the telecommunications arena in order to create real competition. To that effect we applaud the announcements last week to unbundle the loop.

“The whole exercise should have two objectives – improving the quality of services to New Zealand, and reducing the costs of using those services. Ideology has no place in the decisions to be made.

Max Bradford’s electricity reforms were informed by ideology. We now know what the unintended consequences of that ideology were. They need to be considered in any decisions to create greater competition in the telecommunications arena,” concluded Mr Donnelly.

ENDS

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