Markets Need Urgent Clarification From Key on Copper Tax

Conflicting statements from New Zealand Prime Minister John Key on copper tax regulation need clarification before the NZX and ASX open tomorrow, the Coalition for Fair Internet Pricing said today.

This morning, Mr Key told TVNZ’s Breakfast programme that his government was “never going to use legislation [to over-ride the Commerce Commission on copper pricing] because we knew right from the get go people wouldn't vote for that”.

Following Mr Key’s comments, shares in Chorus fell 5.6% today after earlier falls last week.

In contrast, at his post-Cabinet press conference this afternoon, Mr Key would not withdraw his government’s Discussion Document issued by Communications & IT Minister Amy Adams in August that put forward three proposals, all of which required legislation to over-ride the Commerce Commission on copper pricing.

A spokeswoman for the coalition, Sue Chetwin, also chief executive of Consumer NZ, said Mr Key’s conflicting comments risked confusing consumers and investors.

“In the morning Mr Key says legislation is off the table but in the afternoon we learn his government is still consulting about it,” she said.

“It seems Mr Key is getting poor advice on this issue and we hope he can clarify matters before the NZX and ASX open tomorrow morning.”

ENDS

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