KEY POINTS:
Communications Minister David Cunliffe today unveiled details of the Government's $340 million Broadband Investment Fund.
Mr Cunliffe said the fund would deliver more bang for the taxpayer's buck in building the country's broadband infrastructure.
It involves spending $340 million over a maximum of five years and there is a short time frame for industry players to apply.
Government contribution to infrastructure projects will be weighted according to the type of project, with the maximum contribution being 50 per cent for Layer Zero (ducting and fibre) projects.
The will be a maximum contribution of 33 per cent for Layer One (ducting or fibre) project, and a maximum of 10 per cent for Layer Two (ethernet or other bearer services).
Mr Cunliffe said the structure would provide clear and transparent incentives, maximise competition, assist investor certainty and give the best possible leverage for taxpayer dollars.
Applications for funding close September 30.
Mr Cunliffe said that from the 43 submissions received, some people wanted faster turnaround and others wanted time to build their proposals.
There was now a one step fast-track process for this calendar year, and a two stage process in which expressions of interest would be assessed and decided on by May next year.
Mr Cunliffe said the big difference between the scheme and National's plans to spend $1.5 billion over eight years was the difference in the relative share the taxpayer contributed.
"National's plans appear, as far as anyone can tell, is a giant leap backwards," he said.
"The Government has no opposition in principle to public private partnerships. It's a question of who pays and at what level."
A Labour government would still be spending about $1b over 10 years in a ` `contestable bottom up process".
With that he leverage believed would stimulate between $1b and $1.5b investment over the next four years.
Mr Cunliffe said the model had worked overseas.
"The question is how much bang you get for your buck. It's important to strike the incentives right."
A $75 million portion of the funding would be for projects targeting rural broadband.
More details are available on the website www.digitalstrategy.govt.nz
- NZPA
