Adams must accept ComCom decision tomorrow

John Key and Amy Adams must accept the Commerce Commission’s recommendations on copper pricing as any other steps will be nothing more than crony capitalism and corporate welfare, Labour’s associate Communications and IT spokesperson Clare Curran said today.

“John Key said in the House that Amy Adams will reveal the Government’s response to the Commerce Commission’s final decision on copper pricing tomorrow.

“The only responsible position is to uphold the regulator’s decision and enforce the ultra-fast broadband contract with Chorus. Any bail-out, equity stake or loan will be corporate welfare and a jack up to protect Steven Joyce’s badly written contract at a direct cost to Kiwis.

“The Government’s behaviour over Chorus has been bizarre. They appear to be against any move to provide Kiwi households with lower prices.

“When the Commerce Commission announced its draft findings last December John Key was quickly on the phone to the Chorus chair.

“Now the Government is about to announce a plan with Chorus just two days after the Commission’s final decision.

“That raises serious questions. Chorus appears to be hinting that when the demerger with Telecom occurred in 2011 the company was given an assurance it would not be affected by regulatory change.

“The Government must confirm whether there are contractual or informal arrangements that include financial relief following regulatory change, or an understanding that the copper price would be kept high to ensure Chorus profitability,” says Clare Curran.

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