Damien O’Connor
Rural Affairs and Agriculture spokesperson

8 February 2011
Media Statement

Economic madness to leave rural New Zealand with out-dated broadband

New Zealand’s economic growth is being hampered by National’s decision to negotiate rural broadband contracts with incumbent providers who have repeatedly failed rural customers, says Labour Rural Affairs spokesperson Damien O’Connor.

“These two companies, Telecom in particular have failed to acknowledge the importance of the rural economy for years with inadequate investment in rural communication, Damien O’Connor said.

“What the Government seems to have failed to understand is that this is a not a small group of internet users, there are according to Federated Farmers, 800,000 kiwis living in rural areas.

“These are people who provide jobs and pour money into the economy through dairy farming, pip fruit growing, mining, tourism and other activities that are vital to our economy.

“While the plan, should now generate some expansion of rural broadband, the technology they are proposing to use will quickly be overtaken and leave rural areas once again on the back tit of the communication cow.

“The rural economy through primary production and tourism continue to generate the vast majority of our export revenue and wealth creation. It is more important that rural businesses have access to the latest technology and information than urban youth having access to the latest films and gaming options.

“The backbone industries of our economy cannot be left with second rate internet if we are really to grow our economy and move New Zealand forward.

“The National government has got its priorities wrong in this whole process of high speed broadband. What the economy needs is fast and functioning broadband to the productive economy and rural New Zealand and this latest deal does not seem to guarantee that, said Damien O’Connor said.

ENDS