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

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog