Adams Amy: Telecommunications (Development Levy) Amendment Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeAdams Amy: Telecommunications (Development Levy) Amendment Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 21 May 2015. Volume:705;Page:3761. Text is incorporated into the Bound Volume.]Hon AMY ADAMS (Minister for Communications): I move That the Telecommunications (Development Levy) Amendment Bill be now read a third time. As I have heard in this debate fast and reliable connectivity is critical to New Zealand’s economic growth. Like running water or electricity connectivity has become a fundamental must-have service for homes and businesses. The Telecommunications (Development Levy) Amendment Bill—we should have given it a catchier name—highlights the Government’s commitment to extending enhanced connectivity to regional New Zealand. It will help us to deliver faster more reliable connectivity to the regions.I would have thought that it would be hard to argue against better connectivity for our rural and remote communities but there have been a number of MPs across the other side of the House—Labour MPs—who I believe are putting politics ahead of people. I cannot wait to be out on the stump in 2017 reminding rural New Zealanders that Labour campaigned against their getting better broadband. Labour is the only party in the House opposing this bill and I find its position astonishing. It is showing tonight that it would rather side with the telecommunications company executives and their profits than support the extension of broadband to communities that need it. No wonder it cannot win in regional New Zealand. No wonder it is so out of touch. No wonder it is bottoming out in the polls. It cannot even bring itself to support better broadband for regional growth for rural and provincial New Zealanders who desperately need it. It annoys Labour so much to see a Government programme succeeding that it will cut off its nose to spite its face. And of course Labour members cannot filibuster if they are voting in favour which is what we know they are all aboutreally.There has been some confusion from the benches opposite so let me set some things out very clearly. Opposition members who are opposing the extension of the Rural Broadband Initiative are opposing the basic principle of ensuring that our most rural areas have the same opportunities that faster broadband offers our cities. We do not support that. Opposing this extension is refusing rural New Zealanders the same connectivity that other parts of New Zealand enjoy. Labour members will tell us—and they have been telling us throughout this debate—that uptake of the Rural Broadband Initiative is low. They are cherry-picking the numbers and they know it. We know that 8500 people have signed up under the fixed wireless broadband programme and that is only 20 percent of the Rural Broadband Initiative 1 spend.Furthermore Labour members are completely ignoring the fact that one of the core benefits of that part of the spend is enhancing cellphone connectivity. The cellphone connectivity benefits of those Rural Broadband Initiative towers mean that every quarter nearly 2 million New Zealanders benefit from it. The other 80 percent of the programme is fixed line copper broadband. As of 31 March more than 85000 households were able to connect and almost 68000 households have. That is an uptake rate of 80 percent. That does not even begin to cover the service provision to rural hospitals rural health centres and rural schools. This is the programme that Labour is trying to tell you is not working and is failing. If that is the definition of failure Labour has not got a clue.We have also heard that this is some sort of new tax. Well I can tell you that it is not a tax and it sure the heck is not new. Taxes for those who do not know have a broad-based application. Levies are targeted and are used for specific targeted purposes. The telecommunications development levy has been in force since 2011 and replaced the telecommunications service obligation which had been in force even longer and was higher. And of course we announced these changes in August. In this case it is a levy charged against some of the large telecommunications companies and it is used to fund open access infrastructure in areas where it would otherwise not be commercially viable for it to be built. Someone has to pay for it and I do not believe it is fair that taxpayers should foot the bill for the infrastructure that the telecommunications companies use to provide their commercial services. The levy is user-pays and that is exactly how it should be.The Government’s rural broadband programme reflects our commitment to rural communities. We are working with our private sector partners to provide services and coverage that would not otherwise be feasible. By 2016 90 percent of New Zealanders in areas not covered by ultra-fast broadband will have access to rural broadband under Rural Broadband Initiative 1. The $150 million raised by this levy extension will be put specifically towards extending the Rural Broadband Initiative so that almost all Kiwis can benefit from better connectivity under the National Government. That is $100 million for expanding fast reliable broadband to the regions and a further $50 million for expanding mobile network coverage in black spots.The Rural Broadband Initiative is making an immense difference to the way that rural firms do business to the way that our kids learn in rural and remote schools and to the way that health services are delivered to patients. There does however remain a high level of unmet demand in rural areas that are not scheduled to receive upgrades under the original Rural Broadband Initiative. This is due to increased numbers of customers high download demand constrained by existing cabinet technology and backhaul limitation. This bill is about letting us get on with making funding available for communities to improve their connectivity with a $100 million contestable fund for extending broadband in our regions. The criteria for the fund will focus on enhancing connectivity across all areas outside the ultra-fast broadband footprint and they are open-minded about the range of technologies that will be used. This bill means better connectivity for more people.Mobile phone coverage is an essential form of connectivity and can be even more important in rural and remote New Zealand where it has benefits for public safety as well as the potential to grow productivity in our regions. Currently the Spark Vodafone and 2degrees networks claim to provide collectively mobile access to approximately 97 percent of New Zealand premises. However those existing mobile networks achieve less than 50 percent geographic coverage of New Zealand. There remain many rural and remote areas of New Zealand such as sections of State highways and remote tourist areas that would benefit from extended coverage. The benefits of expanded mobile coverage include of course improved communications for businesses and residents who live and work in those areas; improved public safety particularly on our State highways; and making our tourism destinations more attractive particularly in some of those smaller communities. As a result this Government is establishing a $50 million contestable fund with the aim of providing mobile emergency calling and voice and contemporary data service coverage. The fund will enable companies and communities to nominate black spots in key tourist areas and work together to make a case for funding. Let me also confirm that none of the money from this contestable fund will enable any company to satisfy its existing obligations to provide coverage.Rural connectivity is absolutely critical and everyone in this House agrees on that except for Labour. Everyone in this House agrees on that except for Labour. Can I thank New Zealand First the Greens the Māori Party United Future and ACT for their constructive approach and for recognising that actually we do need to get on at pace with rolling out broadband to our rural communities. Someone has to pay and it is appropriate that it should fall on the telecommunications companies. I thank those parties for recognising that this levy has been in place for a long time. It is a matter of cents in each bill and if any telecommunications companies argue that they needs to put their prices up as a result then their consumers should look long and hard at those claims because I do not believe that they stack up. This is a Government that is fulfilling its promises to regional New Zealand. This is a Government that knows that connectivity is the core plank for regional economic growth and this is the Government that is delivering it. I am proud to commend it to the House.