Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 17 September 2013. Volume:693;Page:13372. Text is incorporated into the Bound Volume.]4.Hon DAVID PARKER (Deputy Leader—Labour) to theMinister of Finance: Did the Treasury provide advice as to whether he should support or oppose overruling the Commerce Commission’s draft determination on copper broadband pricing given that the Treasury has previously advised against subsidising big business such as the $30 millionTīwai subsidy which has “no economic justification”?Hon STEVEN JOYCE (Acting Minister of Finance): I am advised that Treasury has provided advice on a range of options regarding the Commerce Commission’s draft determination but has not provided advice to support or oppose the matter raised in the member’s question. Treasury has supported the Government’s decision to bring forward the legislative review of the Telecommunications Act and has set the implementation date for the unbundledbitstream access price to November 2015.Hon David Parker: Why did Treasury say there was “no economic justification” for paying taxpayer subsidies to the owners of theTīwai smelter?Hon STEVEN JOYCE: Well I am not sure that that question actually fits with the primary question but nevertheless Treasury does provide advice on different matters from time to time and the Government sometimes accepts that advice and sometimes operates under different advice.Hon David Parker: Well then why did he ignore Treasury advice that there was “no economic justification” for paying a $30 million taxpayer subsidy to the RioTinto - owned smelter?Hon STEVEN JOYCE: It was the Government’s judgment that in terms of the potential dislocation to the New Zealand power market and in terms of the potential dislocation to the Southland economy it was a sensible decision to provide the payment toTīwai Point. I bet money that when the new Leader of the Opposition goes to Invercargill he will be singing—Mr SPEAKER: Order! That last part is unhelpful.Hon David Parker: Did the Government’s deal giving a $30 million subsidy to the smelter which overrode Treasury advice that said it had no economic justification come before or after a telephone call between the Prime Minister and the smelter boss?Hon David Cunliffe: Another phone call.Hon STEVEN JOYCE: It is outrageous that people use telephones! I am not aware of that particular time line but I can tell the member that if he wants to back Treasury advice then he should see Treasury’s advice on his NZ Power proposal.Hon David Parker: Did the Minister for Economic Development seek the approval of the Minister of Finance before he pressured Vodafone Federated Farmers and 2degrees not to join the “Axe the Copper Tax” campaign; if so is that the same Steven Joyce who refused a base price for copper when the ultra-fast broadband contract was tendered to Chorus and now wants to put in place a base price which economists say is worth hundreds of millions of dollars to Chorus?Hon STEVEN JOYCE: I do talk with the Minister for Economic Development from time to time. I find him particularly agreeable. We tend to agree particularly today on most things. I disagree with the member’s characterisation of my friend the Minister for Economic Development and his conversations with those three parties. The Minister for Economic Development explained to those three parties what was actually involved because the “Axe the Copper Tax” campaign is actually not honest there is no subsidy proposed for Chorus the Chorus contract is not being changed to increase its revenues and the Government is not introducing a copper tax.