Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Minister welcomes further progress on UFB contract

Minister welcomes further progress on UFB contract


Communications and Information Technology Minister Amy Adams has welcomed the agreement by Crown Fibre Holdings and Chorus on the latest amendment to the companies’ Ultra-Fast Broadband contract.

Both parties have agreed to a change which would give Chorus the ability to bring forward funding in the 2015/16 financial year which would have been provided in 2017/18 and 2018/19.

The Government’s UFB initiative has a budget of $1.35 billion and Crown Fibre Holdings is required to act within this fiscal envelope. The change announced today is within this budget and does not increase the overall amount to be paid to Chorus.

“By making adjustments to the timing of when government funding is available, Chorus has more flexibility to manage its cash flow at a time of high capital expenditure,” Ms Adams says.

“At the same time, there are strong safeguards built into the advance funding facility and it will only be provided if strict criteria are met.”

The agreement follows earlier contractual changes agreed by Crown Fibre Holdings and Chorus in March this year.

The agreed changes are intended to partially address the funding gap that was identified in the Government-commissioned independent report by Ernst & Young Australia (EY).

The EY report investigated Chorus’ capability to deliver on its contractual commitments with the Government, in light of the Commerce Commission’s decisions on final wholesale prices for copper-based broadband services.

The report identified a gap of $1 billion and indicated that a significant portion of this could be met from Chorus undertaking cost-savings measures and changes to its dividend and debt policies – leaving a residual gap of $200 million to $250 million.

“The Government has always been clear it expects Chorus to meet the major part of the funding shortfall identified in the EY report. That is still our expectation, and the agreement announced today reflects this.

“The Government’s priority is to ensure the UFB roll out programme stays on track and this agreement helps ensures that the build programme will not be disrupted.

“Importantly for customers, these changes will make no difference to UFB service levels and speeds.

“The overall timeframe for the roll out, the start and completion dates for each candidate area, the coverage area, and the completion date for priority users are all unchanged.”

ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Team Behind Trump's Throne

Forget the Putin factor. Daily, the team of charlatans, bigots and stunningly ignorant crackpots that Trump is appointing to head key federal agencies is just as alarming. These are positions with vast power and budgetary discretion over policies that stand to affect tens of millions of vulnerable Americans. Sad! More>>

 

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news