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

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences.

Such is the power of the economic orthodoxy that when opposition parties arise – say, in the shape of the Greens – their “credibility” is measured by the extent to which they give the appearance of learning and abiding by the ruling consensus.

The tension between the desire for change – and the inability of the current political framework to deliver it – creates openings for populists of all stripes. It is what has made the emergence of Internet Mana so interesting. More>>

 

Parliament Today:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news