The Government says it will wait for the result of an independent analysis into the finances of telecommunications company Chorus before deciding its next move.
On Thursday, the Government's support parties United Future, the Maori Party and ACT joined Labour, the Greens and New Zealand First in saying they will oppose any attempt to legislate to over-ride a Commerce Commission decision on the price Chorus should charge those using the old copper broadband network.
Photo: RNZ
The parties said the commission is an independent regulator and it should be left to do its job without undue interference.
Chorus says the price the commission set in October this year will severely compromise its ability to complete the Government's rollout of ultra-fast broadband.
The regulator's ruling cuts the price Chorus can charge for its copper wire broadband and phone services by about $10 a month to $34.44 in December 2014. Chorus says this price could cause it to default on its bank loan, jeopardise its $929 million contract to roll out the ultra-fast broadband infrastructure and cost it $1 billion by 2020.
On 7 November this year, the Government announced an independent assessment of Chorus' financial position and its capability to deliver on the contract. The review is being done by Ernst and Young Australia and the Government says it wants a robust understanding of whether the ultra-fast broadband programme is at risk.
Amy Adams. Photo: NATIONAL PARTY
Communications Minister Amy Adams told Radio New Zealand's Checkpoint programme on Thursday the Government would take it one step at a time and make a decision once it has a clearer picture of Chorus's finances.
"We've had some initial discussions with our support partners and they indicated they weren't keen on legislating. We've commissioned some independent analysis on the numbers - we certainly want to wait for those before we come out with anything concrete. We prefer to have the information in front of us."
David Cunliffe. Photo: LABOUR PARTY
Ms Adams said National's support partners had already flagged their opposition to legislation, so that came as no surprise.
Labour Party leader David Cunliffe on Thursday commended the minor parties for what he said is a very principled stand. Mr Cunliffe told Checkpoint he does not believe the way through the situation is to over-ride the regulatory framework or do a crony deal with Chorus.
"A crony deal would be something like extending a soft loan or investing in Chorus stock. In fact, any action which the Government might be contemplating which they are not willing to extend to other players in the market would send an undermining signal to the rest of the market.
"The law's the law. The Commerce Commission is operating according to the law. Chorus has a binding contract and it's vital for confidence and the integrity of the market market the law's upheld."
Mr Cunliffe said in the short-term, the Government has to make it clear that it is going to enforce the contract that Chorus voluntarily entered into.
Initial results of the analysis by Ernst and Young Australia are expected in mid-December.
