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 National Leadership “Contest”

Key’s endorsement of English has turned this “contest” into a race for second place.

This succession was well planned. Lets not forget that English was told by Key in September of his intention to resign, and English was the only member of Cabinet entrusted with that information before it was sprung on everyone else on Monday morning. More>>

Latest: Judith Collins and Jonathan Coleman have withdrawn from the leadership race, leaving Bill English the only candidate to replace John Key as Prime Minister.

 

Education, Marketing, Taxes: Health Groups Call For Actions For Sugary Drinks

The New Zealand Dental Association is launching a new consensus statement on Sugary Drinks endorsed by key health organisations. The actions seek to reduce harm caused by sugary drinks consumption. More>>

ALSO:

More Departures? David Shearer Proposed For UN Peacekeeping Role

Mt Albert MP David Shearer is being proposed for a demanding and exciting role heading the United Nations peacekeeping force in South Sudan, says Labour Leader Andrew Little. More>>

ALSO:

Security Agencies' Reports: GCSB Wants To Give ISPs More Power To Block Threats

The Government Communications Security Bureau wants to give internet service providers more information and power to block cyber threats which are increasing, its director told the intelligence and security select committee yesterday.. More>>

ALSO:

Education: Charter Schools Misleading Pass Rates

Labour: NCEA results for charter schools have been massively overstated... In one case a school reported a 93.3 per cent pass rate when the facts show only 6.7 per cent of leavers achieved NCEA level two. More>>

ALSO:

Rebstock Report Resolution: SSC Apologises To Derek Leask And Nigel Fyfe

Following a complaint by Mr Leask, the Ombudsman found that the State Services Commission acted unreasonably in relation to Mr Leask and identified numerous deficiencies in the investigation process and in the publication of the final report and in the criticisms it contained of Mr Leask... More>>

ALSO:

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

ALSO:

Earlier:

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news