Rural Kiwis second class citizens on broadband

29June 2009
Media Statement

National makes rural New Zealanders second class citizens on broadband

A quarter of New Zealand’s population living in rural areas is not included in the National Government’s ultrafast broadband scheme, creating what is essentially a digital divide between urban and rural communities.

Labour communications and IT spokesperson Clare Curran today said that not only had the Government delayed its announcement on how to rollout ultrafast broadband to 75% of New Zealand, but had also confirmed that rural New Zealand was a second tier priority for the delivery of ultrafast broadband.

Clare Curran said Communications Minister Steven Joyce had confirmed, firstly in a speech last week and then at a hearing before the Commerce Select Committee that the rollout of broadband to rural communities was “quite crucial” but that urban rollout was a “high priority”.

“Mr Joyce also confirmed that the money allocated to rural New Zealand, $48 million, was insufficient to deliver ultrafast broadband to one quarter of the population living in rural communities.

“He has declined to outline what the Government’s plans are for a separate rural strategy, when that would be announced and whether there would be extra funds allocated, though he indicated this might be necessary down the track.

"It appears this Government doesn’t have a rural strategy for delivering broadband services anyway. This is something that gives Labour real concern, because $48 million is a pretty paltry sum to provide an essential service to one quarter of New Zealand homes. Especially when you’re looking at $1.5 billion for the rest of New Zealand, Clare Curran said.

“In relative terms, it should have been an investment of $500 million.

“Federated Farmers aren’t happy. Rural Women NZ aren’t happy. Their president Margaret Chapman has been quoted as saying ‘Rural people must not be left out of the loop’.

“Well it seems they are being left out of the loop. Labour doesn’t like leaving anyone out of the loop. We haven’t always seen eye to eye with Federated Farmers, but on this issue they have a pretty strong case.

“A NZ Institute report released in late 2007 argued not only that New Zealand must invest in ultrafast broadband as soon as possible, but that the initial focus should be on high-value segments from which benefits can be realised rapidly. That was true then, and it remains true now, though we’ve seen a big pause while this Government works out which direction to go in.

“But surely, if this government wanted to stimulate investment in broadband and create a competitive environment, then it could pick businesses, schools and hospitals and quickly realise benefits, but also the part of New Zealand where the private companies were unlikely to get an easy return on their investment - rural and regional NZ.

If the Government was to think again about how it invests its $1.5 billion in a way that will truly stimulate the economy, then surely it should be focussing more on rural New Zealand Clare Curran said.

ENDS