The Government appears to be softening us up for a financial contribution to Chorus in the realm of $250 million so that it can do what it has a contractual obligation to do anyway. And TUANZ thinks that some insider trading is going on with Chorus’s shares.
In news this week a Putaruru woman walked 25 kilometers to attend a compulsory WINZ meeting despite there being no jobs available and the Government signalled that it was going to help Chorus with costs overruns despite Chorus having a contractual obligation to roll out the fibre optic network. On Planet Key beneficiaries are obviously expected to comply with their requirements no matter what but rich corporations will be given a helping hand when times get tough.
Every other political party has said an emphatic no to National’s proposal to override the Commerce Commission’s reduction in broadband charges. I suspect that Cabinet and Chorus’s board are not having a very good day …
The Chorus fibre roll out deal with the Government is one of those issues that promises to embarrass the Government deeply, more deeply than us lefties may think. Because amongst the ranks of this Government’s supporters are those who hold close to principles. They not be our principles but nevertheless from the view of the right are just as if not more important than ours. One of the most important is the sanctity of the market. This is why some on the right are distraught at the generosity being shown to one of our largest corporates.
The Commerce Commission has now decided that there should be a significant reduction in broadband costs although not as much as previously proposed. Chorus has responded by saying that it may not be able to complete the fibre outlay. John Key is suggesting that Chorus could be nationalised. And the right wing are in revolt. How has National been able to muck this issue up so badly?
Day one of David Cunliffe’s tenure as Labour leader and the tone is being set. There will be unity in the party and Labour is going to take the fight to National and John Key.
