Prime Minister John Key stands by his comments that network company Chorus could "go broke" if a Commerce Commission recommendation to cut internet prices is adopted.
That's in spite of the New Zealand and Australian stock exchanges yesterday confirming Chorus had not informed them of any such risk, as it is obliged to do under market rules.
Last month Mr Key warned that Chorus, which is handling about 70 per cent of the roll-out of the Government's ultra-fast broadband network, "could go broke" if a Commerce Commission recommendation for a $12.50 per customer cut in the wholesale price of copper-based broadband services were adopted.
The lobby group Coalition for Fair Internet Pricing, which is pushing for the Commerce Commission's ruling to be adopted, wrote to the two stock exchanges asking if Chorus had told them of any risk it could go bust.
"We're pleased with the ASX and NZX conclusions because they confirm that there is absolutely no risk of insolvency under any of the copper pricing scenarios put forward by the Commerce Commission as the independent regulator", said Sue Chetwin, coalition spokeswoman and Consumer NZ chief executive. "This means the roll-out of ultra-fast broadband can proceed as planned."
