Smith backs move over commissioner

By RICHARD BRADDELL

Today's telecommunications policy announcement is likely to reject the creation of an independent electronic communications commissioner, a move applauded by Opposition spokesman Lockwood Smith.

Instead, Dr Smith is expecting Communications Minister Paul Swain to establish a specialist commissioner within the Commerce Commission.

"The slight danger of a Government body having this regulatory role is that it does tend to grow, although this won't grow anywhere nearly as rapidly as an industry-specific regulator," Dr Smith said.

His comments were based on what he had pieced together before Monday's cabinet meeting, at which final decisions on the policy were made. But if his expectations were met, then what the Government presented today would be "pretty much common sense," he said.

"It's a lot better than the Fletcher inquiry proposals. It reduces the risk of a burgeoning regulatory bureaucracy.

"The one thing we have to watch is whether decisions are made speedily."

Dr Smith was disappointed that a suggestion by Vodafone for an industry arbitrator has probably been rejected.

But he approved of the probable designation of only three services, rather than the 10 or so proposed by the inquiry.

Industry sources, and Dr Smith, suggest the proposal for legislating obligations under the Kiwi Share has also been rejected.

Instead, there is talk of a universal service obligation under which the industry as a whole would contribute to the cost of upgrading the data capability of Telecom's rural network.