Foss Craig: Communications Legislation Bill — In Committee 
Foss Craig: Communications Legislation Bill — In Committee 
[Volume:634;Page:6029] 
CRAIG FOSS (National—Tukituki) 
: 
 I rise on behalf of the National Party to speak on the Communications Legislation Bill. Previous National speakers have alluded to the fact that yes we are supporting this bill. First though I have to declare an interest having lived in Japan for a couple of years. Frustratingly and sadly I brought home a few Japanese radios and what at the time I thought were flash stereos and I cannot pick up anything after 90 megahertz. I cannot even pick up Radio Kahungunu The Rock Radio Hauraki and so on. So I learnt a lesson there. 
In doing a bit of research for the Committee stage today I was looking at the Minister’s first reading speech. I have here a couple of interesting quotes from the Minister when he introduced the bill. Minister Cunliffe talked about Part 2 which we are dealing with now. He said that the changes in Part 2 were “largely of a technical nature but they are critical for the efficient functioning of the regulatory environment for services that require use of the radio frequency spectrum.” Then—and this is most important—he spoke of the underlying spectrum licences that are created for periods of up to 20 years which gives certainty of investment for services using the radio spectrum. Those comments on their own are fine. It is nice rhetoric but as with so much of the current administration they are nice ideas but there is hopeless hopeless execution. 
As I said I would like to speak on Part 2 and in particular on clause 6. Clause 6 deals with radio licensing spectrum management etc. I would like to touch on the WiMAX spectrum of which our Ministry of Economic Development has been undertaking auctions over the last couple of years. It is the 2.5 to 3.5 gigahertz part of the spectrum. For the uninitiated out there they come in pairs. 
Members will remember that the Minister said we need certainty of investment and that these spectrum licences were for 20 years. I would just like to quote from a couple of written questions that I asked the Minister and his replies. They are quite illuminating. This is a reply I received on 10 March when I asked the Minister whether he was satisfied with the distribution of the 3.5 gigahertz WiMAX spectrum and if so why. The Minister said that yes he was satisfied that the spectrum in question had been allocated appropriately. I thought that was interesting and I will tell members why in a minute. Another question I asked was whether he was satisfied with the process of the allocation of the 3.5 gigahertz WiMAX spectrum; if so why. The Minister said that yes he was satisfied that the allocation process to date had been fair and equitable and that it met the policy intentions of the Government. Again that reply was received on 10 March 2006. Finally I asked the Minister what the original time frame was for the allocation of the 3.5 gigahertz WiMAX spectrum and whether any adjustments had been made to that timetable; if so why. The Minister answered—and I ask members to bear with me—“The process for allocation of area spectrum licences in the two remaining Crown-retained management rights”—they are the ones that are up for auction—“was originally planned to be completed in late 2005. It is now expected that this will be completed in April or May 2006.” 
 Well I say to the Minister that we are in October 2006 now so that was 6 or 7 months ago. The WiMax auction—the allocation—is still going. The result has been an absolute shambles. There has been delay upon delay upon delay. There have been cancelled auctions. There have been suspended auctions. There have been further investigations of auctions. Winning bids—as part of the spectrum as part of this efficiency and certainty that the Minister speaks of—have not been able to prove and they do not have the resource to come up and pay for their winning spectrum or auction. I wonder whether the Minister is even aware of that because in the telecommunications industry in the sectors on the blog sites etc. it is pretty easy to find out that stuff. Again I think the execution of what is a good idea is absolutely hopeless. Not only can the winning bids not even afford to pay a deposit now but they have no resource whatsoever to pay the balance. I believe that the minimum was 17c per head per region. Some of the winning bids have no background whatsoever in telecommunications. They have no network in the telecommunications industry. How on earth will New Zealand move its infrastructure forward when after virtually 2 years when this auction was first started we really have no one off the ground? We have nothing but a few headlines.