Headline: Govt must not interfere in final copper pricing decision
“The Commerce Commission’s lower copper price will result in a $100 million yearly windfall to New Zealand consumers and businesses.”
The National Government should respect the statutory independence of the Commerce Commission and let the final decision the Commission has made for copper-line internet pricing stand, the Green Party said today.
The Commission today released its final decision for copper-line based internet services. Monthly wholesale prices per line will be priced at $34.44, a cut of 23 percent from the current price of $44.98. The Commission’s earlier interim decision suggested a deeper price cut to $32.45.
“The National Government should respect the decision of our independent pricing regulator and not look to interfere in copper-line internet pricing to bolster Chorus’s profits,” Green Party information technology spokesperson Gareth Hughes said today.
“The Commission’s lower price will result in a $100 million yearly windfall to New Zealand consumers and businesses.
“Any moves by the Government to legislate for a higher copper prices is simply a tax on businesses and consumers to provide excess profits for Chorus.
“Cheaper internet is good for New Zealand households and businesses and will not unduly impact on the uptake of fibre which competes on performance.
“Consumers can currently access the internet for as little as $5 per month on dial-up but very few choose this cheaper, low-performance option.
“New Zealanders deserve to pay a fair price for internet and not have the Government artificially elevate the price to subsidise Chorus and their roll-out of the Ultra-Fast Broadband network.”
Mr Hughes was concerned about the precedent set by the National Government under the influence of corporate lobbying.
“It’s not the first time National have used legislation to transfer public wealth to large corporations,” Mr Hughes said.
“National’s Sky City legislation and $30 million cash pay-out to Rio Tinto’s Tiwai Point paint a picture of a Government beholden corporate lobbying rather than protecting the interests of consumers and tax payers.
“The Green Party supports the roll-out of ultra-fast broadband without on-going corporate subsidies to Chorus to artificially inflate its profits.”
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