John Key says every year that goes by with New Zealand falling behind other countries is another year of missed opportunities. Photo / Martin Sykes

John Key says every year that goes by with New Zealand falling behind other countries is another year of missed opportunities. Photo / Martin Sykes

National's ambitious billion-dollar-plus plan to bring faster internet access to three-quarters of New Zealand homes and companies has been hailed by business and internet groups.

But the Government says it is extravagant and opportunistic.

Party leader John Key yesterday promised a taxpayer investment of $1.5 billion over six years in high-speed internet technology if National wins this year's election.

Within a year of taking office, Mr Key said, he would convene negotiations with telecommunication companies to thrash out their role in contributing the remainder of the $4 billion it would cost to meet National's broadband target.

National wants to see the current copper wire network upgraded to a fibre cable network.

That shift would greatly improve upload and download times, and Mr Key predicted benefits of between $2.7 billion and $4.4 billion a year to the economy.

"New Zealand has already fallen behind our global competitors when it comes to broadband," he said.

said.

"We've delayed the big decisions and put off investment for long enough.

"Every year that goes by with us languishing behind other countries is another year of missed opportunities."

Broadband was as important to New Zealand's economy as roads and railways - areas in which the Government had invested billions of dollars.

Mr Key's deputy, Bill English, has downplayed the need for public money to be spent on broadband, but yesterday Mr Key said better internet access has passed the "national interest" test.

"If it were left solely to the market we would be extremely surprised if fibre to home is rolled out any time in the foreseeable future," he said.

"That's because the business case for it initially probably wouldn't support the investment, but over the medium term it will make a tremendous difference for the New Zealand economy," Mr Key said.

Communications Minister David Cunliffe said National's plan would cement Telecom in as the dominant fibre network provider.

The party's plan amounted to a state subsidy for a monopoly firm, Telecom, Mr Cunliffe said.

"The only logical bill partner is the incumbent, Telecom. The Crown will need to get a return on that capital and it will also be the case that Telecom will want to get a return.