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

No Charges: Outcome
Of Operation Clover Investigation

Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls in the Waitemata Police district and wider Auckland area.

Following a lengthy and complex investigation, charges are not being laid by Police at this time regarding 8 incidents involving 7 victims and 5 suspects. More>>

 

Parliament Today:

UNICEF Report: NZ Cautioned On "Stagnating" Child Poverty

An international report by UNICEF has found that child poverty rates in New Zealand have barely changed since 2008, despite similar sized countries significantly reducing child poverty during the recent recession. More>>

ALSO:

Funding Report: Two Pathways For Transport In Auckland

Commissioned by Auckland Council, the group was asked to investigate two possible pathways for raising $300 million per year ($12 billion over 30 years) to pay for the improvements needed to help fix Auckland’s transport system. More>>

ALSO:

Pay Equity: Equal Pay Win In Court Of Appeal

CTU: The Court of Appeal has made a historic decision paving the way for a substantial equal pay claim for aged care workers. More>>

ALSO:

Gordon Campbell: On The TPP Finishing Line, And Amazon’s Woes

If the Trans Pacific Partnership trade deal wasn’t such a serious matter, this would be pretty funny… More>>

ALSO:

TV3 Video: Three Die On Roads Over Labour Weekend

The official holiday period ended at 6am Tuesday, with three deaths on the roads during the Labour Day weekend. More>>

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news