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 Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news