18 May 2006
Consider Electricity Reforms Before Splitting Telecom – New Zealand First
New Zealand First telecommunications spokesperson, Hon Brian Donnelly, is warning the government to be informed by the
vast gap between the theoretical and the actual outcomes of Max Bradford’s electricity reforms before it proceeds with
any structural separation of Telecom as suggested in the budget speech of Michael Cullen.
“It is absolutely clear that there is a desperate need for regulatory intervention in the telecommunications arena in
order to create real competition. To that effect we applaud the announcements last week to unbundle the loop.
“The whole exercise should have two objectives – improving the quality of services to New Zealand, and reducing the
costs of using those services. Ideology has no place in the decisions to be made.
Max Bradford’s electricity reforms were informed by ideology. We now know what the unintended consequences of that
ideology were. They need to be considered in any decisions to create greater competition in the telecommunications
arena,” concluded Mr Donnelly.
ENDS