John Key must apologise over Chorus

John Key must apologise for claiming Chorus ‘will go broke’ unless a copper tax is brought in after the Australian and New Zealand stock exchanges found no evidence to back up his statement, says Labour Leader David Cunliffe.

“The Chorus copper tax is one of the biggest examples of corporate welfare in history. Two independent reports, from Covec and Network Strategies, have found that a copper tax would be a cost to New Zealand of between $600 million and $1 billion. Much of that would be paid for by Kiwi households through their broadband bills.

“John Key was so desperate to justify his crony capitalism through the copper tax that he made the outlandish claim that Chorus could go broke without his interference.

“No one believed him then. Now the ASX and NZX have said there is no evidence to back up his claim. It’s time for him to apologise to New Zealanders for misleading them, especially anyone who held shares in Chorus.

“The copper tax is pure crony capitalism, just like SkyCity and Rio Tinto. John Key cuts corporate deals over dinner and phone calls. The problem is most of the time he gets a bad deal and its everyday Kiwis who lose out.

“The Government’s ICT policy is a complete mess. The ultra-fast broadband rollout is ultra-slow. That is the primary reason Chorus may be under pressure. The solution to that problem is to encourage uptake with a strong, competitive market for online content that gives New Zealanders a reason to use it

“The Government’s alternative of corporate welfare for Chorus while putting pro-competitive content regulation in the two-hard basket is a recipe for disaster

“John Key’s exaggerations have been shot down by the stock exchanges. It’s time for him to apologise to New Zealanders,” David Cunliffe says.

ends

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