Donnelly Brian: Telecommunications Amendment Bill (No 2) Radiocommunications Amendment Bill (No 2) — Third Readings 
Donnelly Brian: Telecommunications Amendment Bill (No 2) Radiocommunications Amendment Bill (No 2) — Third Readings 
[Volume:634;Page:6112] 
Hon BRIAN DONNELLY (NZ First) 
: 
 I thank Pansy Wong for her contribution in which she was able to demonstrate with so much awe and wonder just how New Zealand First is able to punch so much above its weight. There is a lesson in this because she made a reference to that and asked what Labour wanted out of New Zealand First to be able to gain ground on this issue. It is a lesson on how MMP operates because I can say this: Labour wanted absolutely nothing. It was purely and simply that the Minister of Communications was prepared to listen to the case we were putting forward he saw there was some merit in it and he was able to take the necessary steps to move forward. 
As Nanaia Mahuta has said the two bills which the original legislation has been separated into are relatively minor and they are relatively technical. She did however make the statement that telecommunications is a fast-moving area. I would have to agree with Pansy Wong in terms of one criticism which is that the Telecommunications Amendment Bill (No 2) which was Part 1 of the Communications Legislation Bill extends for 2 years some work that should have been completed by December 2006. The Commerce Commission now says it cannot guarantee that it will be finished by 2006. That work was set in place by the Telecommunications Act of 2001. So one would have to raise some questions as to the rapidity with which that work is being carried out. Of the 13 services only three have in fact been completed. Nevertheless given the situation as it stands it is eminently sensible to extend the time frame. 
The other little issue covered by the legislation as people will know is to do with imported cars particularly Japanese imported cars which often have limited bands. So people put band expanders into their cars. If the band expanders are standard and decent there are no problems but some people have been putting in some el cheapo band expanders which are not standard. They have been interfering in a certain area—I think it is in Christchurch—with the correct usage of the spectrum and that could have affected the full usage of the spectrum. Therefore once again this is sensible legislation and New Zealand First will certainly be supporting it. 
It was Part 2 of the Communications Legislation Bill which has become the Radiocommunications Amendment Bill (No 2) that New Zealand First had some issues with. We were not on the Commerce Committee but we did listen to the issues that were raised and I will just go through them. When the Radiocommunications Act of 1989 was introduced it was expected that the spectrum would be moved quickly to the then new management right regime. Spectrum that was identified specifically in the Act for early attention was that used for sound broadcasting television cellular services and land mobile radio. A land mobile radio spectrum was specifically identified in the sixth schedule to the Act. In the ensuing years all such identified spectra with the sole exception of the land mobile radio spectrum have been converted to the management right regime. 
This has resulted in security of tenure for broadcasters and cellular operators with much of it obtained under the favourable incumbency provisions of the Radiocommunications Act 1989. A recent Government initiative for rolling over early management rights has continued this certainty. Certainty of tenure has permitted such operators to enter into long-term contracts and also to raise investments. The problem was however that those using the land radio spectrum have not had such good fortune because the land mobile radio spectrum was not brought under the management right regime. Therefore uncertainty hangs over the industry and investment has been hard to obtain. 
What the original legislation would have done was to create even more uncertainty as it seemed to create an environment that made it easier for officials to alienate current users from incumbency rights without compensation. I will just go to the part of the report back from the select committee to which this legislation was referred. It states: “We heard from an organisation seeking amendment to the transitional provisions in the Radiocommunications Act covering land mobile radio frequencies. We understand the Ministry of Economic Development intends to include a review of these provisions in its work programme. We recommend no amendment to the bill.” There was no minority report and no signalling that there was an issue of concern which is why New Zealand First had to step into the fray even though we were not on that select committee. 
The current use of this particular part of the spectrum includes back-up services for emergency services and the state of insecurity would have continued as a result of this legislation. That would have created a problem as far as New Zealand First was concerned. For example we were fully aware that during the recent severe snowstorms in southern Canterbury the only reliable form of communication for a lengthy period of time was dependent upon the very spectrum we are talking about in this legislation. We believe that it needs to be protected and not go to the highest bidder. It is now a matter of history that New Zealand First intervened on behalf of the radio frequency users and we take our hat off to the Minister David Cunliffe for his willingness to listen and to recognise that not every party has a mortgage on all good ideas. 
Meetings were facilitated between the Minister and the Radio Frequency Users Association and also between the Minister’s reps and Ministry of Economic Development officials. From those meetings came some memorandums of understanding and some letters. I had a phone call from David Thomson who said that the Radio Frequency Users Association is now extremely comfortable with the situation it finds itself in. 
Just to wind up although New Zealand First did not play a part in the select committee process we have played a part in the ensuing process of the second part of this legislation the Radiocommunications Amendment Bill (No 2). We are particularly pleased about the constructive role we played to make sure that the legislation does not lead to a worse situation than what New Zealand now has. New Zealand First is pleased about the role it has played and will provide its support to these bills as they are now presented to the House.