17 May 2011

ACT says broadband policy waste of money

4:11 pm on 17 May 2011

The ACT Party says the Government has not done any cost-benefit analysis on its proposed ultra-fast broadband network because it would show it is a waste of money.

The Telecommunication Amendment Bill would mean three-quarters of New Zealand getting fibre-optic cabling.

The ACT, Labour and Green parties have written scathing minority reports saying the bill will create anti-competitive behaviour and lead to price gouging.

ACT finance spokesperson Sir Roger Douglas says embarking on a major infrastructure development without economic analysis is reckless.

He says the Government might as well flush $1.5 billion down the toilet.

Communications Minister Steven Joyce says cost-benefit analysis is subjective and difficult because broadband is a fast-moving technology.