Wong Pansy: Communications Legislation Bill — In Committee 
Wong Pansy: Communications Legislation Bill — In Committee 
[Volume:634;Page:6026] 
PANSY WONG (National) 
: 
 We are very pleased to resume the debate on this legislation. There are three issues that we would like to bring to the attention of the Committee. First is the issue with regard to the position advised by the officials that stereos in second-hand Japanese cars that may not receive radio signals would not be considered an inappropriate device that would interfere with the allocation of radio frequency. National agrees with that position. In my hand I am holding a copy of the Ministry of Economic Development’s information leaflet on the FM reception problem and the Commerce Committee is quite comfortable for that education approach to be taken. 
I would like to seek comments or commitments from the Minister in the chair Pete Hodgson on the next two issues that I bring to the attention of the Committee because National members on the select committee were assured of some conditions before we agreed to continue to support this part. The first issue is the introduction of the possibility that in future the allocation of radio frequency will be conducted by means other than a competitive process. Some submitters showed a lot of nervousness about what the Labour Government could do in terms of interference and the introduction of a lack of transparency into the process. For example one submitter suggested that these provisions allow the Government to allocate radio frequency by means other than a competitive process which means that the Government can choose whom they negotiate with. Some commercial operators indeed feel very nervous. They reckon that under the existing legislation there is provision for Government to do that anyway. The submitter reckoned that this new provision was introduced to allow the Crown to require further payment to be made when radio licences are allocated by those other means because under Part 13 of the existing Radiocommunications Act the Crown could allocate those radio frequencies anyway. So is it an issue of introducing further levy payments by stealth? I think the Minister in the chair should take a call to assure those submitters that the introduction of this new provision to allow radio frequency to be allocated by arrangement or agreement is not an underhand way of charging further fees to those organisations who may be the successful recipient of frequencies. 
The other prospect of introducing this flexible mechanism raised a concern by others about the Government allocating those very sought-after radio frequencies in a very non-transparent manner. We heard the Minister not too long ago announce two additional frequencies for commercial use and two for community use in the various regions. Putting the community frequencies aside if the allocation of commercial frequencies is to be awarded without a transparent competitive process some people are concerned about what the criteria are and who is likely to receive those frequencies. They are a very marketable product. In fact people in the market to acquire radio frequencies could find that they attract very high prices. I believe that the Minister in the chair should take a call to assure the public that the introduction of new frequencies does not have a hidden agenda for interference by Government. 
The second issue I would like to raise before my other colleagues take a call—and once again I urge the Minister to rise and give the public an assurance—is the issue raised by the Radio Frequency Users Association of New Zealand. This association is a non-profit organisation consisting of members such as local government authorities and transport communications courier forestry farming taxi and consultancy organisations. These members use a number of different radio bands mainly for non-profit purposes. They are very anxious that in the first instance they were not consulted on this legislation and they were very very unclear as to what the impact would be on them. They are seeking an assurance that they will have security of tenure. During the select committee process I recommended with the support of all the members that the chair ensure that officials carry out further consultation with this group. But at the time we came to deliberate the issue had not really been resolved. That association wrote to us again and said it was nervous and had not been reassured of the tenure of those frequencies for non-profit users. 
The association also suspects that the driving reason for officials not supporting its amendment to secure its tenure is that the officials are already planning further conversions of some of the spectrum to other uses. I tell the Minister that National has agreed to support the bill only on the assurance of the officials that the Government is in the process of reviewing in this financial year the security of tenure for all radio licences. The officials said that this would address the concerns raised by that association. The officials have said that the proposition to offer great certainties of tenure to holders of the radio licences is a good argument because that might facilitate the increased investment in radio infrastructure. However they claim that at this stage policy work on this issue needs to be undertaken with full consultation. 
I tell the Minister that I think this is a very very serious issue. The Radio Frequency Users Association is responsible for a lot of the transmitted emergency community news. The fact that it was not consulted in the first instance has led to the select committee requesting the officials to go back to the association and hold a consultation. I understand that at this stage it has not been fully resolved. I would like to see the Minister in the chair take a call to reassure the public and the Radio Frequency Users Association that the policy work is genuinely under way and there is no hidden agenda to assign the frequencies currently operated by it for other usage. 
It is incumbent on the Government to give that assurance to ensure the continued support of National on this issue. We have accepted the words of the officials at this stage but it would be helpful if the Minister could take a call to assure us that in the meantime before the policy work and the consultation is undertaken there is no hidden agenda or plan to convert the spectrum that at the moment is operated by the Radio Frequency Users Association for other purposes. Otherwise National will continue the Committee stage. I am sure that my good colleagues will support me. I can see that Chris Tremain is ready to charge on furthering that questioning.