Telecom could face network nightmare with works changes

Phone calls, text or internet could be out for Telecom customers if proposed changes to public works legislation go ahead. Photo / Martin Sykes

Telecom customers could be left unable to make phone calls, text or surf the web if proposed changes to public works legislation go ahead, a parliamentary committee was told today.

Submissions on Maori Party MP Te Ururoa Flavell's member's bill, Public Works (Offer Back of and Compensation for) Acquired Land Amendment Bill, were heard by the local government and environment select committee today.

The bill aims to ensure land taken by the Crown for public works, and no longer needed for the purpose it was taken for, is offered back to Maori first.

It also allows for compensation for loss of opportunities when the land is not used for that purpose.

Mr Flavell told the committee he did not know how much land would be involved but he hoped it would not be much.

There was "something distasteful" about the way the Public Works Act worked, he said.

"That's not to say we don't need public works which are about the greater good.

"But what's happening after needs fixing."

Telecom said it agreed with the underlying principle of the bill, but was concerned by "unforeseen practical consequences".

Telecom does not use the Public Works Act but much of its land was acquired from the Crown when the company was privatised in 1990.

About 850 of those sites were originally claimed under the Act.

Many of those were taken for joint post office, police or school and telecommunications use.

Telecom was concerned it would have to offer back land taken for other purposes but which it requires to operate its telecommunications network.

"The proposed amendments could result in Telecom being forced to offer back sites that form part of our network and that would be prohibitively expensive, or impossible to replace.

"If this occurred we maybe unable to deliver telecommunications service to the areas served by those exchanges and sites."

Telecom said this could be avoided if the amendment was not applied retrospectively or did not apply to services needed to provide telecommunications services.

Many sites would also be impractical to offer back to anyone except neighbouring property owners or utility companies because of the size or access, Telecom said.

Kiwirail would also be affected by the impact on land transferred from one public authority to another.

Corporate counsel Karen Watson said while there was a "sense of unfairness" when land was taken by one authority and then used by another for a different purpose, it was important for infrastructure.

"It would be completely inefficient for land to be offered back...and then for other public authority to go through the process of compulsorily acquiring that land."

The New Zealand Transport Agency was "sympathetic" to the situation where land was taken by one authority and used by another.

"However, there are situations where the change in public work is made for good reason."

Such transfers should be allowed but it must be "fair, sound, and reasonably" necessary.

Local Government New Zealand opposed the amendment and said the Public Works Act should be left as it was or reviewed completely.

CentrePort Limited and Wellington International Airport were opposed to the amendment.

New Zealand Port Companies said it would create "practical difficulties" and "uncertainty".

- NZPA