Telcos bill 'farce and charade', says TelstraClear head

Allan Freeth, TelstraClear chief executive. Photo / Supplied

Hearings to consider new law on broadband are a farce and a charade, TelstraClear chief executive Allan Freeth told MPs today.

In a forceful submission to the Parliament's commerce committee considering the Telecommunications (TSO, Broadband and other matters) Amendment Bill, Dr Freeth said the short period to prepare and give a submission on an issue worth billions of dollars to New Zealand made him wonder why he bothered.

"I contend this process is a farce; a charade for this Government to pass legislation to drive its policies and to protect its investment in a flawed scheme to bring a fibre network to New Zealand."

Dr Freeth said over the past 20 years his company's predecessors Saturn TV, Clear Communications and Telstra, as well as other companies, invested billions and provided customers with choice.

He hung on his office wall the first non-Telecom bill sent to a customer in 1991.

The new legislation discarded companies' efforts and the benefit of competition, he said.

"To have it done in such a discourteous and cavalier way calls into question the trust that any investor, present or future, domestic or international can have in a fair hearing."

Telco investors had not been consulted in a real way.

"Our concerns have been dismissed as self-interest... if billions of dollars and 20 years of providing consumers with choice is worth only a glancing consideration by government then I wonder why we bother?"

Communications Minister Steven Joyce yesterday ruled out more time for submissions on the bill.

The select committee had until May 16 to report back on the bill, which was about six months since it was introduced.

"I am aware of Mr Freeth's views," he told Parliament when questioned by an opposition MP.

"I point out to the member that Mr Freeth has been opposed to the whole idea of the Ultra-fast Broadband Initiative since it was first announced in 2008. So I suppose the question for the member would be whether he is now siding with Mr Freeth in terms of his views on the Ultra-fast Broadband Initiative."

Dr Freeth today said that was wrong and TelstraClear was a huge supporter of fast broadband - it was their core business.

"What we are opposed to is a poorly conceived proposal, such as the one developed by government in an attempt to achieve such an aim. Making this statement about us is like saying someone opposes democracy because they have issues with MMP.

"It is a cheap shot response to a sincere and serious concern."

- NZPA