Peters Winston: Questions for Oral Answer — Questions to Ministers 
Peters Winston: Questions for Oral Answer — Questions to Ministers 
[Volume:617;Page:13224] 
6.  
Rt Hon WINSTON PETERS (Leader—NZ First) 
 to the  
Minister of Communications 
: Why is New Zealand the only OECD nation that has decided not to unbundle its local loop given that Mexico which was the second to last nation not to has begun down this path? 
Hon PAUL SWAIN (Minister of Communications) 
: 
 Because the Telecommunications Commissioner recommended bit stream unbundling and not local loop unbundling. 
Rt Hon Winston Peters 
: Did that commission’s recommendation and final decision come after the Woosh Wireless organisation and Telecom met in July of last year; if that is the case what is going on and what is the result of such collusion? 
Hon PAUL SWAIN 
: As the member knows—and I presume he has read the report—the report was presented in December 2003. I am not sure what the member is on about as far as the second part of his question is concerned. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. I am asking the Minister whether the commission’s recommendation and decision was arrived at after the meeting between Woosh Wireless and Telecom last year and well before the commission made its decision. If it was then there is a matter of collusion. 
Mr SPEAKER 
: That is another question that the member has asked. The member has used his question up but the Minister can answer. 
Hon PAUL SWAIN 
: I know that the commissioner’s report was tabled on 21 December 2003. I do not know about the meeting the member is referring to. 
Darren Hughes 
: What options did the Minister have once he received the Telecommunications Commissioner’s report and why did he choose to accept the commissioner’s recommendations in full? 
Hon PAUL SWAIN 
: Under the Telecommunications Act there are only three options: to accept or reject the recommendations or to request the commission to reconsider various aspects of its recommendations. I chose to accept the recommendations because I considered that would be the quickest way to get an increase in the uptake of broadband in New Zealand. I consider that that is in the best interests of New Zealand consumers. 
Sue Kedgley 
: Why is the Minister claiming that there will be improved access and competition for wholesale broadband and the quickest way of getting uptake etc. as a result of last week’s decision when he is well aware that Telecom’s wholesale broadband services will only be available at such a low speed that it is not even fast enough for home businesses so it is hardly broadband at all? 
Hon PAUL SWAIN 
: The answer to the first part of the question is primarily because the commission spent well over 12 months looking at all those matters and came back with its recommendations. The second part of the question though is a good one. It is what I consider to be a minimum speed. Telecom has already made some announcements about improving that speed by March 2005 and we will hold Telecom to that. 
Rt Hon Winston Peters 
: Can the Minister possibly explain to the country how a largely foreign-owned Telecom monopoly of the local loop network in any way enhances competition delivers the lowest prices and benefits consumers and business people—or is it simply a matter of political patronage—and what has Telecom done to deserve that monopoly being continued? 
Hon PAUL SWAIN 
: The Telecommunications Commissioner once again looked at that quite considerably and said that the best uptake to try to get broadband was to concentrate on the 21st century problem which is bit stream unbundling rather than on last century’s problem. The member will know that unbundling the local loop is no panacea or silver bullet and has low take-up around the world. As far as the second part of the question is concerned I think the answers are no and nothing. 
Rt Hon Winston Peters 
: I seek leave to table the fact that the 1993 election is just one example of a situation where Telecom gave the National Party and the Labour Party free communications services. 
Document not tabled.