Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


NZX Asked to Inquire Into Chorus Financial Viability

COALITION FOR FAIR INTERNET PRICING

MEDIA RELEASE

9.00 AM MONDAY 16 SEPTEMBER 2013

NZX Asked to Inquire Into Chorus Financial Viability

The Coalition for Fair Internet Pricing has asked the NZX to inquire into Chorus Ltd following conflicting statements about its financial viability by its chief executive, Mark Ratcliffe, and the prime Minister, John Key.

“We are concerned there may be information circulating in Wellington about the financial viability of Chorus Ltd under the Commerce Commission’s draft determination for the price of copper broadband that is not available to its shareholders or to the broader market,” said the coalition’s spokeswoman, Sue Chetwin, also chief executive of Consumer NZ.

On Thursday, the coalition launched its campaign against the Government’s proposed $600 million copper tax – the economic effect of the Government over-ruling the draft determination, according to a report by top economists Covec.

In response to the campaign launch, Mr Key told TVNZ Breakfast on Friday: “If the Commerce Commission ruling stands there is a chance Chorus will go broke.”

Media were unable on Friday to establish the information on which Mr Key based his comments.

On TV3’s The Nation over the weekend, Mr Ratcliffe would not endorse Mr Key’s comments but said there were “some really challenging scenarios” if the draft Commerce Commission recommendation was accepted.

While denying it had lobbied the government, Mr Ratcliffe said his company had “present[ed] a range of our views” on copper to ministers and officials.

This morning, again on TVNZ Breakfast, Mr Key would not repeat his suggestion Chorus could go broke but said the draft Commerce Commission recommendation would put “pressure” on Chorus.

Ms Chetwin said shareholders and the broader market needed the information on which Mr Key and Mr Ratcliffe were basing their comments to be made publicly available for independent analysis.

“The NZX is the appropriate authority to seek this information in the first instance,” she said.

She noted that Chorus made a net profit of $171 million last year, paid $95 million in dividends to its shareholders and its shares closed only marginally down at $2.88 on Friday.

“This does not look like a company the market thinks has a chance of going broke, or that is facing challenging scenarios, or that might come under financial pressure,” she said.

The Coalition for Fair Internet Pricing was founded by Consumer NZ, InternetNZ, and the Telecommunication Users Association of New Zealand (TUANZ) and is supported by CallPlus and Slingshot, the Federation of Maori Authorities, Greypower, Hautaki Trust, KiwiBlog, KLR Holdings, National Urban Maori Authorities, New Zealand Union of Students’ Associations, Orcon, Rural Women, Te Huarahi Tika Trust and the Unite Union. 

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news