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Govt broadband discriminates against rural people

3 December 2009 Media Statement


Govt broadband discriminates against people living in rural communities

The National Government’s broadband scheme will create a digital divide between urban and rural New Zealand, Labour’s Communications and IT spokesperson Clare Curran said today.

“It’s time Communications and IT Minister Steven Joyce acknowledged that rural New Zealand will not get the same deal as urban New Zealand on broadband, despite his claims to the contrary.

“There are compelling arguments for more equitable government investment in rural New Zealand, Clare Curran said.


“Firstly to ensure people already living in remote and rural locations can engage and participate in economic and socially beneficial activities via broadband as they would if they were living in a city.

“And secondly to encourage more New Zealanders to remain in rural areas, where they can fully participate in society and to attract more people to move to rural New Zealand where they can establish businesses and keep those communities viable.

“Announcements this week that 1000 rural schools will get ultrafast broadband within six years are all very well, but the facts are that the Government is spending $1.5 billion on providing ultrafast broadband to urban New Zealand and just $300 million to the rest of New Zealand, a quarter of New Zealand’s population.

“And what they’re not telling more than one million New Zealanders is that only $48 million of that $300 million is government money.

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“The rest is coming from a levy on the telecommunications industry.
“Federated Farmers and Rural Women NZ understand these arguments and have lobbied the government hard for more equitable broadband funding. But the real prospect of a digital divide remains.

“We have two broadband schemes being rolled out in this country. This will create duplication and difficulties that are unnecessary. One policy is about delivering ultrafast broadband to 75% of NZ homes and the other is about fast broadband to rural schools with the hope of future spill-over to rural homes and farms.

"Labour is absolutely committed to the rollout of ultrafast broadband in this country. It was Labour who developed the digital strategy upon which this Government's scheme is based. Labour had a regional-focussed approach, investing seeding money into schemes and not expecting a rate of return because we knew we needed a long term approach. Broadband is the network of the future and will drive our economic growth. We must get it right.

“Government is not a business. Its role is to assess social and economic needs in society and to ensure that it encourages industry and fills the gaps where industry cannot or will not deliver.

“Steven Joyce has come in for strong criticism this week from a respected overseas commentator Paul Budde, for his disjointed approach to the delivery of broadband in rural and urban New Zealand.

“The Minister should take stock of the criticism and have a rethink of how his rural broadband scheme could be made more equitable,” Clare Curran said.

ENDS

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