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Chorus statement on Transfield

Chorus statement on Transfield

Chorus welcomes assurances from Transfield that it is urgently addressing late payment issues to its sub-contractors, and is seeking assurance that there will be no repeat of this issue.

Chorus confirms that it has fully paid Transfield for all work undertaken and has no outstanding payments due. August invoices are scheduled to be paid on September 20.

“We are dismayed that this situation has arisen, and in particular we find the treatment of the sub-contractor community to be unacceptable,” said Mark Ratcliffe, CEO Chorus. “We note Transfield’s assurances that it is endeavouring to make good on any outstanding payments and look forward to resolution.

“For Ultra-fast Broadband to be a success we need a stable and sustainable industry and our sub-contractors are a critical part of that eco-system.

They have invested in equipment, people and training and taken risks and don’t deserve to be treated in this manner.”

Contractors first signalled an issue to Chorus on Tuesday, at which point Chorus sought clarification from Transfield.

“If any contractors need any support or advice from Chorus at this stage we ask them to call 0800 600 100 and we will do what we can to help," he said.

Chorus is responsible for around 70% of the Ultra Fast Broadband initiative as the Crown’s cornerstone partner. 10% (Rotorua, Taupo, Whakatane, Blenheim and Nelson) of the Chorus build area is handled by Transfield, while and Downer and Visionstream are involved in the remaining 90%.

Transfield also provides around one third of Chorus’ provisioning and maintenance activity on the copper network, some deployment work for the Rural Broadband Initiative (RBI) and some property maintenance services.

The sub-contractors involved in the UFB deployment are separate from the Transfield employees who undertake network maintenance and provisioning work for Chorus in the upper South Island and the middle of the North Island, who do not appear to have pay issues.

ENDS

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