20 May 2004

Telecom Asked To Reveal Donations

Rt Hon Winston Peters has called on Telecom to reveal whether it has made donations to the Labour and National parties to help maintain its monopolistic position in the New Zealand telecommunications market.

After four years of protracted research, lobbying and argument, the Government has decided against forcing Telecom to completely open up its local phone lines to competitors.

Mr Peters said the decision was “inexplicable” and raised the question of why there was deafening silence from a number of political quarters about Telecom’s lack of competition on the local market.

“Six years ago I commissioned a Treasury report which recommended that Telecom’s monopoly should be removed and it is important to find out why this has never happened.

“Why are people who have been advocating competition so strangely quiet while Telecom takes hundreds of millions of dollars off New Zealand telephone subscribers?

“Eleven years ago Telecom donated free lines to National and Labour for the 1993 election campaign. It is important to know whether other donations have been since then,” said Mr Peters.

ENDS

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